How Egypt is scaling national green and smart solutions to mitigate climate change

MENA is warming by twice the average global rate, with temperatures set to increase by 4 degrees Celsius in two decades. The effects of climate change are already being felt across the region and impacting day-to-day lives. For example, increased humidity pushed heat indexes beyond recorded temperatures in Dubai and the United Arab Emirates (UAE) (reaching 60 degrees Celsius-like temperatures). Meanwhile, in Kuwait, temperatures were close to the all-time high of 54 degrees Celsius.

Beyond daily disruptions, the economic impacts of climate change across the region are daunting. The World Economic Forum’s Leaders for Sustainable MENA Community forecasted a potential loss of 4-21% of GDP value by 2050 in the region due to the domino effects of rising temperatures (the highest worldwide) if governments and businesses don’t scale smart and green solutions in the face of climate change.

With back-to-back United Nations (UN) Climate Conferences (COP) hosted in MENA – Sharm El Sheikh (COP27) and the UAE (COP28) – lots of effort and investment have been galvanized towards mitigating climate change challenges across the region in the past years. However, the road ahead requires further mobilization of investments to enhance the region’s preparedness.

The government of Egypt has been specifically leading a significant effort to drive green solutions across several sectors following its presidency in 2022, with a focus on infrastructure, clean and renewable energy, and sustainable financing, through various initiatives. One way the country is leading the way is through the National Initiative for Smart Green Projects.

Covering Egypt’s 27 governorates and led by the Ministry of Planning, Economic Development and International Cooperation the initiative rewards innovators and entrepreneurs who scale green growth solutions, leveraging technology and innovation while advancing the climate action agenda through a nationwide competition.

In its past two cycles, it has received over 12,000 project submissions, of which 3,817 were shortlisted. These included 647 focusing on energy, 364 focusing on climate adaptation, 272 focusing on emissions reduction and 674 focusing on waste management.

A second layer of selection, following a review of the top-performing governorate submissions, selected 18 winners for each respective cycle. These winners benefit from governmental support, recognition and incentives, and private sector investments.

For example, Engazaat, set up by Mohamed El Demerdash, pioneers Egypt’s first end-to-end independent power and water production system, providing sustainable and affordable cleantech and clean energy across Egypt.

Engazat has offset 461,214 tonnes of carbon dioxide (CO2) and produced 63 megawatts of power from solar installations, in addition to 15 million cubic metres of water annually. With investments reaching $33 million, the venture will expand in Egypt and the region, and is forecast to produce up to 350 megawatts of energy from clean sources.

Other winners include Egypt’s Waste Bank. Launched in Luxor by Atta Gad Alkarim, the venture is establishing digitally connected green waste industrial complexes, helping to accelerate waste reduction and recycling efforts while decreasing methane emissions (34% more impactful in heat-trapping, in contrast to CO2). To date, the Waste Bank has converted 50 million tonnes of waste and has helped create more than 27,000 direct and indirect job opportunities.

Other ventures also include 3D Cutter, a gender-focused e-waste recycling project, which produces mini-CNC machines – compact computer-controlled milling or engraving machines for precise, small-scale cutting and shaping – and training more than 700 women to recycle e-waste – the fastest growing global waste stream, which emitted 580 metric tonnes of CO2 in 2020.

LifeBox is another key venture, producing a 100% Egyptian-made, solar-powered, self-contained and fast-deployable unit that delivers affordable and clean energy to thousands of users while generating safe water.

Through the National Initiative for Smart Green Projects, Egypt is closing the climate change gap between the region’s private and public sectors. In addition to facilitating the scaling of smart and green projects and green financing, in the lead-up to COP27 and beyond, 5,500 individuals were trained through more than 152 initiative workshops on principles of sustainability, emission reduction, and circularity, helping raise awareness about the criticality of climate action across the country.

With the world now past the midpoint toward the 2030 deadline for the UN’s 17 SDGs, progress is lagging. Just 12% of the SDG targets are on track, almost one-half are off-track and more than a third are either failing to advance or worse, regressing below the baseline set in 2015.

With COP29 just months away, MENA must mobilize resources and partnerships to close climate change gaps, empower innovators to reduce emissions and enhance sustainability practices.

The National Initiative for Smart Green Projects is currently in its third cycle. It offers a unique and replicable model to advance bottom-up solutions and enable innovation in addressing climate challenges. It also encourages closer cooperation between the private and public sectors for a more coordinated approach.

To learn more about the World Economic Forum’s Leaders for Sustainable MENA Community, our insight reports and explore how the Forum is advancing the region’s climate agenda, click here.