targets. Therefore, an efficient governance structure is essential to guide and facilitate the interaction among all stakeholders. Robust monitoring, learning and development mechanisms need to be in place to gauge the effectiveness of different approaches, pinpoint successful initiatives for replication and scaling- up, and taking corrective measures whenever necessary to ensure the achievement of results. A long journey to climate recovery starts now At this moment in history, there is little dispute on the importance and urgency of the climate agenda. We are all ambitious for mobilizing collective efforts. Equally, we need to act on exploring, advancing and implementing the means of leveraging finances, developing and transferring technology and building capacities on national and international levels. As countries set their targets for the NDCs to be achieved by 2050 or beyond, it may be perceived that this is still in the far future. However, this may only represent one investment cycle for many capital-intensive industries. 2022 is, thus, a critical year – to lay the foundation for a more robust climate finance architecture that is mobilized from all sources through stronger coordinated efforts. In this vein, the US$100 billion target of the Paris Agreement needs to be looked at as a floor – not a ceiling – for the path towards climate resilience. This article was originally published on the World Economic Forum’s website, as part of the Davos 2022 Annual Meetings.
T he OPEC Fund for International Development has supported Egypt since the establishment of the organization in 1976. To date, the Fund has committed more than US$1.3 billion to more than 85 projects in various sectors of the economy in alignment with the country’s sustainable growth strategies and development goals. Delivering on its goal to bolster energy access close to half of the OPEC Fund’s support to Egypt has been geared towards the energy sector. Strengthening food security, the OPEC Fund has supported several irrigation projects to increase the yield of crops. “With strong international support, Egypt has made substantial progress in the past decade, implementing an economic reform program to stabilize the economy and address macroeconomic imbalances, while reforming the crucial financial and energy sectors. The OPEC Fund has always supported Egypt’s development priorities in key areas such as energy security and EGYPT
investing in developing countries and emerging economies. The guidebook is therefore aimed at deciphering the climate financing ecosystem to allow different stakeholders to engage and collaborate based on reliable information systems. In order to raise private investments for climate action, clarity is key in providing an overview of the main reasons leading to a significant shortfall of capital in emerging markets, the important techniques that should be adopted in these markets to attract investments and the required policies and reforms for ensuring the mobilization of funded capital in emerging markets. The complex and multi-faceted dynamic relationship among partners must be sustained through trust and transparency as well as accountability and commitment towards delivering these climate financing targets. This will be challenging without a robust system to ensure that financial flows are well aligned with the identified
energy transition, food security and
infrastructure development,”
says Musab Alomar, OPEC Fund Director for MENA, Eastern Europe & Central Asia.
Energy security and green transformation With a population of more than 100 million and growing, Egypt is the most populous country in the Middle East. Steeply rising energy demand is creating significant challenges in maintaining continuous supply while transitioning towards a sustainable, resilient energy system. Over the past decade Egypt launched an ambitious energy policy reform program with a target to generate 40 percent of its electricity from renewable sources by 2035. Successful reforms have eliminated severe power shortages whilst incentivizing investments in renewables.
If we are to deliver on the agreed global climate goals, cooperating to collectively mobilize climate finance and to scale-up mitigation
and adaptation efforts, by leveraging private sector engagement, is crucial.
Rania Al-Mashat, Minister of International Cooperation, Egypt
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