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COP27 US, Germany and Egypt agree on ambitious climate cooperation
Today’s announcement sets a new target for a faster expansion of renewable energy to reach 42 per cent by 2030, five years earlier than previously planned. The share of renewables in the power sector is currently at 11 per cent. The decommissioning of at least 12 gas-fired power plants with a total capacity of 5 gigawatts is a key component of this massive restructuring of the Egyptian energy sector. The new ambitious climate policy will be reflected in a revised NDC by June 2023.
Minister of International Cooperation, H.E. Dr. Rania A. Al-Mashat: “Egypt’s Country Platform for the NWFE نُوَفِّـي Program, the Arabic translation of the phrase ‘Fulfilling Pledges’, adopts a multi-stakeholder approach through deploying innovative climate financing modalities to accelerate implementation. The announcement is a sign of the strong partnership between Egypt, the United States and Germany in the fight against climate change.”
German Development Minister Svenja Schulze and US Special Presidential Envoy for Climate, John Kerry, welcomed the announcement which came out of a trilateral discussion group between Egypt, Germany and the United States.
“With this announcement, Egypt as host sends a strong signal for more ambition in mitigation to COP27. I especially welcome that Egypt’s new climate policies will also address the social dimension of transitioning to green economies. Without social justice there will be no successful answer to climate change”, Schulze said.
At the launch event today at COP27 John Kerry underlined the significance of Egypt updating its NDC by June next year.
Egypt has unique conditions for developing renewable energy: hydro, solar and especially wind. German State Secretary Flasbarth stressed at the launch that wind power resources will be the key driver to ensure that the installed renewable energy capacity will also be reflected in the actual energy mix. In the joint agreement, Egypt commits to drafting an ambitious 2050 long-term strategy with a view to explore a net zero greenhouse gas emissions target.
Germany will support this initiative with 250 million Euros composed of 50 million Euros in grants, 100 million Euros in highly concessional loans, and 100 million in debt swaps. Part of the proceeds of the debt swap will be used to help create new livelihoods for people affected by the closures of the old gas-fired power plants.