The UN Climate Change Conference, the official name for Climate Conferences of the Parties has been held every year since 1995. The summit is considered a space for world leaders, politicians, experts and a whole host of other people to discuss the climate crisis on a global level. The annual conference brings together those that signed the United Nations Framework Convention on Climate Change (UNFCCC) – an international environmental treaty addressing climate change – 30 years ago. This year, 2022, COP27 took place in Egypt, for the first time, Egypt and other countries signed several crucial agreements and partnerships.
A key COP 27 agreement came first as a critical declaration that developed nations ought to help developing countries pay for the catastrophic consequences of climate change, which is considered a historic agreement reached after weeks of negotiations. A fund will be set to help poor countries being ravaged by the impacts of global warming. COP27 President Sameh Shoukry sealed the deal, however, countries which will finance the fund and countries who will be eligible to benefit from it, has been left to be decided during future negotiations.
Furthermore, the EU boosted the discussions offering to support the loss and damage fund, provided large polluters including China pay into it and that countries also ramp up efforts to cut emission, Reuters wrote.
It is to be noted that the developed world still has not kept its 2009 pledge to spend 100 billion euros a year in other climate aid – designed to help poor nations develop green energy and adapt to future warming.
On the other hand, the EU and Egypt have taken a further step to boost their long-term cooperation on the clean energy transition by establishing a strategic partnership on renewable hydrogen and preparing the ground for a just energy transition in Egypt. The European Commission, represented by Executive Vice-President Timmermans and Commissioner Simson, signed a bilateral Memorandum of Understanding on a strategic partnership on renewable hydrogen, with Egypt’s Minister for Petroleum Tarek El Molla and Minister for Electricity and Renewable Energy Mohamed Shaker El-Markabi. They also signed a joint statement with the European Bank for Reconstruction and Development (EBRD) and the Egyptian Minister of International Cooperation, Rania Al Mashat, announcing the Commission’s contribution of up to €35 million in support of Egypt’s Energy Wealth Initiative.
The Energy Wealth Initiative was launched by the Egyptian government and the EBRD to implement the energy pillar of the Nexus of Walter, Food and Energy. The Initiative is designed to accelerate implementation of the country’s new climate change strategy for 2050 launched in May 2022. The energy initiative aims to shut down 5,000 MW of existing and inefficient gas-based power generation capacity (equivalent to around 5% of Egypt’s total electricity supply) and facilitate investments to support the installation of 10,000 MW of new renewable energy capacity. As Egypt is seeking international partners to support grid infrastructure investments, the retirement and decommissioning of existing assets, supply chain development and measures to ensure a just transition, today, the Commission has announced its intention to contribute through a €35 million grant for this initiative to the EBRD under the EU’s Economic and Investment Plan for the Southern Neighborhood.
Related to Egypt, Planning Minister Hala El Said launched a fund that will invest up to EGP One billion in low-carbon projects that issue carbon credits, the Planning Ministry. The fund, dubbed EgyCOP, will complement the launch of the planned carbon market, the statement said.
As well, Egypt and Germany signed nine cooperation and financing agreements worth EUR 160 million on the sidelines of COP27, the International Cooperation Ministry said in a statement. International Cooperation Minister Rania Al Mashat and German counterpart Svenja Schulze signed an EUR 80 million grant to finance three unspecified projects to improve private sector competitiveness, solid waste management, and technical and vocational education and training (TVET). Al Mashat inked four financing agreements worth EUR 57 million with German development bank KfW. They include an EUR 26 million grant and EUR 12.5 million in financing for the Education Ministry to establish and refurbish TVET, applied tech, and teacher training facilities; and EUR 16.5 million in finance and EUR 2 million grant to renovate irrigation canals. Last but not least, Al Mashat and German development agency GIZ signed four technical support grant agreements worth EUR 23 million disseminated among; EUR 11 million for the Nile Delta Water Management Program; EUR 8 million for the Supporting e-Government and Innovation in Public Administration (InnoPA) project and EUR 2 million for the Capacity Building through Urban Infrastructure (CBUID) project.
