Friday 18 November 2022

COP27: EU commits €35m to support Egypt’s Energy Wealth Initiative

The European Commission has made a commitment to contribute up to €35 million (£31m) in support of Egypt's Energy Wealth Initiative at the COP27 climate summit.

The programme was launched by the Egyptian Government and the European Bank for Reconstruction and Development (EBRD) to implement the energy pillar of the Nexus of Water, Food and Energy (NWFE) initiative designed to accelerate the implementation of the country's new 2050 climate change strategy launched in May 2022.

The energy initiative aims to shut down 5,000MW of existing and inefficient gas-based power generation capacity – equivalent to around 5% of Egypt's total electricity supply – as well as facilitate investments to support 10,000MW of new renewable energy capacity.

The Commission intends to contribute the new grant to the EBRD under the EU's Economic and Investment Plan for the Southern Neighbourhood.

A joint statement from the EU, Egypt and the EBRD states: “NWFE's energy pillar will contribute to achieving Egypt's objectives of 'installing additional renewable energy capacities to reach electric power contribution target of 42% by 2035' and 'improve the energy efficiency of electricity by the maintenance, upgrade and replacement programmes for obsolete power plants'.

“The European Commission and the European Bank for Reconstruction and Development, consistent with their respective prerogatives, wish to support the Arab Republic of Egypt in meeting its sustainable development goals, particularly its low emission and climate resilient development.”