There is a big wave of investment in new and renewable energy sources especially the green hydrogen
Egypt signed 15 green hydrogen memorandums of understanding, some of them will be declared practically in a shape of contracts
Dr Mahmoud Mohieldin, UN Climate Change High Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, said that the designated teamworks of Egypt and UK presidencies of COP are preparing a worksheet that represents a roadmap for financing, developing and investing in climate projects, commissioned by Ambassador Sameh Shokri, Minister of Foreign Affairs, in cooperation with a big team of economy experts and researchers, officials of high level international financing entities from Africa, Latin America, Japan, China and some European countries.
His remarks came during a video intervention in “Last Word” show that presented by Lamis El Hadidi on “On” TV about his participation in the experts roundtable held in Cairo on Monday for preparing a report of financing climate action, commissioned by the British and Egyptian presidencies of COP26 and COP27.
Mohieldin said that the purpose of preparing the worksheet is to address all fields of financing development in connection to climate action, adding that financing climate projects means financing infrastructure projects, especially in the sector of new and renewable energy sources.
“We discussed vital subjects that relate to public and private investments in adaptation measures in the shade of recent crises of COVID-19, Ukraine، food and energy shortage and climate change.” Mohieldin said, explaining that investing in adaptation could help get solutions for the energy crisis and provide substitute sources of energy, beside improving agricultural productivity and well-management of water resources.
Mohieldin said that the main features of the worksheet have been defined in two experts meetings and another meeting with the Prime Minister Dr Mostafa Madbouly, ministers of Planning, Finance and Environment, and Egypt Central Bank representatives, adding that the worksheet will be presented during COP27 in Sharm El Sheikh.
Mohieldin stated that the public sector bears the brunt of financing climate action either through the public budgets or through debts that represent more than 60% of financing climate action in the world, stressing the necessity of scaling up private sector participation in financing and investing in climate action.
“Climate action should attract investments rather than being a space for more borrowing either from inside or outside.” Mohieldin said.
In his answer of a question about what should be done in the shade of the hard economic crisis, especially that some countries went back to the usage of coal, Mohieldin said that some European countries revised some of their concepts to be more flexible in dealing with energy, especially that fuel and sources of increasing agricultural productivity beside the well-management of water resources are all vital for livelihoods.
“Many countries are currently facing stagflation, but on the other hand, there is a big wave of investment in new and renewable energy sources, especially the green hydrogen.” Mohieldin said, explaining, in this context, that Egypt signed 15 green hydrogen memorandums of understanding some of them will be declared practically in a shape of contracts, beside some mega projects in the country in the field of solar energy.
Mohieldin described COP27 as an international conference that concerns Africa and the developing countries, adding that COP27 is the “conference of implementation” as the world have had enough of unfulfilled promises and pledges, and that is why COP27 will discuss implementing and financing specific projects, and will only give the floor to those who can actually implemen these projects.
“Despite the high costs and risks, financing these projects could be reachable and their revenues are large, large revenues stimulate to bear the high costs and face the risks.” Mohieldin said, stressing that giving in to costs and risks will not help climate projects to be implemented.
About his participation in the first day of Egypt Economic Conference 2022, Mohieldin stated that there is a crisis of exporting and importing that deteriorated the economic performance of many companies, especially those that depend on production inputs, and this led to negative impacts on the Egyptian economy that are in their way to be solved according to Prime Minister, related ministers and some sources in the central bank.
“Some solutions and measures will be announced in the industry investments and international trade session.” Mohieldin said.
He explained that exports contribution to the gross domestic product in Egypt is low, and the per capita exports range between 300$ and 350$ while it reaches 1000$ in Cambodia, saying that Egypt targets 100$ billions of exports and this highlights the necessity of increasing them.
“There are high expectations and aspirations, and Egypt has great opportunities to achieve these aspirations through investments, exports, increasing productivity, and spending on health care and education.” Mohieldin concluded.