Egypt Secures €688m Green Bond for Energy Transition

Egypt has mobilised €688 million ($750 million) in green bond financing to strengthen climate finance and accelerate its energy transition under the country’s Climate Strategy 2050, according to a government climate action report reviewed on January 5, 2026.

The financing, secured through the Global Green Bond Initiative with backing from the European Investment Bank and the United Nations Development Programme, is expected to support large-scale adaptation measures and cut an estimated 10 million tonnes of carbon dioxide equivalent emissions. Government projections indicate that the programme could deliver climate resilience benefits to about 8.3 million people.

Officials said the funds are designed to strengthen Egypt’s climate finance architecture and deploy innovative financing mechanisms to support both emissions reduction and climate adaptation, key pillars of the country’s long-term energy transition agenda.

The mobilisation of the green bond funding was detailed in a 2025 climate action report reviewed by Egypt’s Minister of Local Development and Acting Minister of Environment, Dr. Manal Awad, with the Ministry of Environment acting in its capacity as the country’s national authority to the Green Climate Fund. The ministry said the financing aligns national development priorities with low-carbon growth and climate resilience objectives outlined in Egypt’s National Climate Change Strategy 2050.

Beyond the bond issuance, the report highlighted progress in expanding Egypt’s climate investment pipeline through blended finance and private capital mobilisation. The Green Climate Fund approved a $200 million Novastar Investment Fund, alongside a $50 million equity allocation targeted at climate technology investments in Egypt.

Together, the funding flows reflect efforts to crowd in institutional capital and move climate solutions beyond pilot phases, particularly as Egypt and the wider region face rising exposure to heat stress, water scarcity, and climate-related economic disruption.

Egypt’s push to secure long-term climate finance has also coincided with increased diplomatic engagement on global climate and energy transition issues. Government representatives participated in negotiations at the 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP30) held in Belém, Brazil, where discussions focused on mitigation, adaptation, capacity building, technology transfer, and climate finance.

On the domestic policy front, Egypt has completed the final draft of its third Nationally Determined Contributions (NDC 3.0), which is expected to sharpen the country’s mitigation and adaptation commitments while improving alignment with global reporting standards. Authorities have also finalised Egypt’s first transparency report and its fourth national communication ahead of submission to the UN climate secretariat.

As part of efforts to strengthen governance and accountability in the energy transition process, Egypt is developing a national digital monitoring, reporting, and verification system in collaboration with international partners. Officials said the system will improve emissions tracking, climate risk disclosure, and investor confidence.

The green bond mobilisation forms part of a broader strategy to link climate finance, institutional reform, and implementation capacity as Egypt works to transition toward a more resilient, low-carbon economy, underscoring how emerging markets are increasingly using structured finance instruments to advance long-term energy transition goals.