Egypt and EIB Global set to deploy EU grant aimed at greening Egyptian economy

This article is published in association with European Investment Bank.

• The Egyptian government and the EIB’s development arm have signed an accord on the use of a €21 million EU grant to decarbonise the domestic economy and promote recycling.
• The grant is part of an Egyptian green-industry initiative to which EIB Global has also contributed a €135 million loan.

The European Investment Bank’s development arm (EIB Global) and Egypt have signed an agreement for the use of a €21 million grant to help green the Egyptian economy. The grant, funded by the European Union and managed by EIB Global, is intended to accelerate efforts by the Egyptian private and public sectors to decarbonise and promote environmental sustainability.

Most of the EU grant (€20 million) will be used to co-finance investments to reduce carbon emissions, boost recycling and support other pollution-reduction steps taken by Egyptian industry. The remaining €1 million will be for the digitalisation of the Egyptian Environmental Affairs Agency to enhance its environmental monitoring, enforcement and transparency.

H.E. Dr. Rania A. Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, said “This agreement marks a key milestone in our collective efforts to accelerate Egypt’s green transformation. Through strong international cooperation, particularly with EIB Global and the European Union, we are mobilizing blended finance to catalyze sustainable industrial practices, promote circular economy models, and advance our decarbonization agenda. The grant not only complements Egypt’s national climate goals, but also strengthens public-private collaboration to unlock green growth and inclusive development.”

The signature took place at an event attended by Minister Al Mashat, EIB Vice-President Gelsomina Vigliotti, Stefano Sannino, director general of the European Commission’s Directorate-General for the Middle East, North Africa and the Gulf, and Egyptian Minister of Environment Yasmine Fouad. Also present were Samar Al-Ahdal, supervisor of the European Cooperation Sector of MOPEDIC, and Yehia Aboul Fotouh, deputy chief executive officer of the National Bank of Egypt.

“This project supports the transition of Egypt’s industrial sector to a green economy by decarbonising production processes and by promoting renewable energy, sustainable industry practices and circular- economy models,” said EIB Vice-President Vigliotti. “Egyptian companies will be better placed to access climate finance and unlock new large-scale investments that drive renewable energy adoption, enhance recycling and reduce pollution.”

The EU grant is part of an Egyptian Green Sustainable Industry programme to which EIB Global is already contributing a €135 million loan. The EIB financing is expected to unlock €271 million in climate-focused investments, contributing to Egypt’s transition to a low-carbon and more environmentally friendly economy.

Stefano Sannino, Director-General of the Directorate-General for the Middle East, North Africa and Gulf of the European Commission said: “Today, the EU launches the EU-Egypt Investment Guarantee for Development Mechanism, a strategic platform designed to fast-track significant investment projects and deliver large-scale financing solutions in Egypt. Close to one year after a successful EU-Egypt investment conference which generated numerous EU investment opportunities in Egypt, this is a new major milestone in the implementation of the EU-Egypt Strategic Partnership. In a Team Europe approach, the EU becomes a strategic investor and economic partner in Egypt’s sustainable growth and green transition. The Investment Guarantees for Development Mechanism will help mobilising up to €5 billion in public and private investments between 2024 and 2027”.

Background information

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 — around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through our offices across the world. High-quality, up-to-date photos of our headquarters for media use are available here.