Egypt and the European Investment Bank’s development arm have signed a deal to use a €21 million EU grant for greening the country’s economy. The agreement, signed by EIB Global and Egyptian officials, will help decarbonize domestic industry and boost recycling efforts, according to a press release. The grant is part of a larger Egyptian Green Sustainable Industry program that includes a €135 million EIB loan.
Most of the grant money will target carbon reduction and pollution control in Egyptian industry. The EU funding comes as Egypt works to shift its economy toward cleaner production methods and renewable energy sources.
About €20 million will co-finance investments to cut carbon emissions and support recycling in Egyptian industry. €1 million will digitize the Egyptian Environmental Affairs Agency to improve environmental monitoring and enforcement.
“This agreement marks a key milestone in our collective efforts to speed up Egypt’s green transformation,” said Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation.
EIB Vice-President Gelsomina Vigliotti said Egyptian companies will be better positioned to access climate finance and unlock new large-scale investments.
The EIB financing is expected to unlock €271 million in climate-focused investments. The deal is part of broader EU efforts to mobilize up to €5 billion in public and private investments in Egypt between 2024 and 2027.
