Green financing in Egypt

By Deborah Lehr as featured on Middle East Institute

The green movement has been slow to catch on in Egypt, but the January announcement by the Egyptian government that it is finalizing plans to launch the country’s first green bonds could provide the financial incentives to further promote sustainable development. “Sustainability” is one of the fastest-growing sectors globally, estimated to reach as much as $12 trillion annually by 2030. With major infrastructure development planned, a sophisticated financial sector, and significant vulnerabilities to climate change, Egypt should move full steam ahead in embracing green finance.

Egypt could have an early mover advantage by expediting plans to develop a sustainability strategy, of which green bonds would be one aspect. The global bond market was worth over $115 trillion in 2019, according to mid-year figures, and green bonds are one of the fastest-growing segments. Although they still only account for less than three percent of traditional bonds, green bonds issuances increased by 31.5 percent in 2019. There is tremendous potential as more investors are seeking these opportunities.