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Key Takeaways:
- GCF approves financing for three multi-country programs totaling $2.687 billion.
- Egypt among beneficiaries of funding for green finance and climate-resilient agriculture.
- Initiatives aim to enhance institutional capacity and support smallholder farmers with climate-smart solutions.
The Green Climate Fund (GCF) has approved financing proposals totaling $2.687 billion for three multi-country programs: Greening Financial Systems, the Smart Resilient Agriculture Investment Fund, and the Resilient Water Infrastructure Expansion Facility. These projects will be implemented in several countries, including Egypt, to bolster climate resilience and sustainable development.
Egypt’s Minister of Environment, Yasmine Fouad, highlighted the significance of the approval for the Greening Financial Systems program, stating it was “a result of continuous discussions with the European Bank for Reconstruction and Development, as the entity accredited by the Green Climate Fund since last November.”
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The Greening Financial Systems program provides financing of up to $1.295 billion, with the GCF contributing $200 million to implement the program in 14 Asian and African countries, including Egypt. It offers beneficiary countries a package of financing tools in the form of soft development loans and guarantees, along with a technical support grant of $100 million.
Fouad explained that the program aims to enhance the institutional capacity of Egyptian financial institutions to develop green financial products and align financial flows with the Paris Agreement. It seeks to provide affordable financing to support projects in energy generation, low-emission transportation, health, food and water security, and infrastructure—contributing to Egypt’s updated nationally determined contributions.
The Smart Resilient Agriculture Investment Fund program, approved for 10 African countries including Egypt, comes with a financing package totaling $130 million. The project aims to provide smallholder farmers with climate-smart, resilient solutions such as:
- Access to improved production inputs, including climate-resilient seeds.
- Financing to improve farmland and invest in production capacity.
- Innovative insurance tools, particularly weather-related insurance.
- Agricultural knowledge and extension services to improve productivity.
- Infrastructure improvements like irrigation and mechanization.
- Access to premium markets to increase income and profitability.
This program contributes to the second goal of Egypt’s National Climate Change Strategy 2050, which focuses on enhancing adaptability and resilience to climate change and mitigating its negative impacts.
Additionally, the GCF agreed to climate financing provided by the Resilient Water Infrastructure Expansion Facility program. This initiative will offer financing packages of grants and soft development loans estimated at $1.262 billion, with the GCF contributing $258 million. The funds will be invested in 14 countries, including Egypt, to expand resilient water infrastructure.