CAIRO - 12 October 2023: Egypt's Minister of Finance, Mohamed Maait, announced that the government continues to introduce more supportive incentives for local green hydrogen production, as per a statement issued by the ministry on Thursday.
Maait stated that the government has recently introduced new incentives to support the transition to a green economy, focusing on promising sectors with regional and global priority.
The minister elaborated that these incentives include encouraging green hydrogen production by providing tax incentives ranging from 33 percent to 55 percent of due taxes, as well as incentives for the local production of electric vehicles, contributing to attracting more environmentally friendly private investments.
"The total green investments in Egypt have increased from 15 percent in the fiscal year 2020/2019 to 30 percent in the fiscal year 2021/2020. We aim to reach 50 percent in the coming fiscal year, and we also aim to increase the supply of electricity from renewable sources to 42 percent by 2035,” he added.
The Finance Minister affirmed that the issuance of Chinese "Panda" bonds, equivalent to $500 million in the near future, aims to bolster Egypt's path towards achieving green development. This will be achieved through the expansion of clean transportation projects, renewable energy, sustainable water and sewage management, and other environmentally friendly areas.
The Minister mentioned Egypt's launch of the "Debt for Sustainable Development Alliance" initiative, aimed at providing strong support for environmentally friendly investments and reducing the debt burdens on developing countries. This initiative contributes to creating financial space for enhancing clean investments and establishing a new framework for consultations at the intersection of debt, climate, and development.
"Finding a mechanism to exchange debt for climate action can make significant progress in maximizing environmental and financial resilience through the issuance of new sustainable instruments that allow countries to reduce their debt burdens," Maait noted.
He stressed that the challenging financial situation in emerging markets hinders climate and development efforts, and it is necessary to launch a new path for consultations, making the debt crisis a part of the solution by encouraging more sustainable investments to support green growth and address environmental challenges.
Earlier, the Egyptian Minister of Electricity, Mohamed Shaker said that Egypt aims to capture between 5-8 percent of the global commercial market for green hydrogen.
Shaker added that Egypt's strategy for producing low-carbon hydrogen is being finalized in preparation for its presentation to the National Hydrogen Council and its approval by the Supreme Council of Energy soon.
He stressed that green hydrogen is expected to grow rapidly in the coming years as a potential major accelerator of the energy transition and an aid to global decarbonization on a broader scale. Therefore, the Egyptian leadership was keen to direct the preparation of a national strategy for the production of low-carbon hydrogen as a promising source of energy in the near future.
The minister pointed out that the general framework of the strategy was announced during the Conference of the Parties of the UNFCCC (COP27), which was held in November 2022 in Sharm El-Sheikh.
Shaker stated that this strategy aims to make Egypt one of the world leaders in the low-carbon hydrogen economy, based on the leading global experiences and innovations in the production/export of hydrogen and its derivatives, renewable energy resources and Egypt’s strategic location.
"The strategy includes an ambitious goal for Egypt's participation, representing 5-8 percent of the global commercial market for green hydrogen. The strategy is being finalized in preparation for its presentation to the National Hydrogen Council and its approval by the Supreme Council of Energy soon,” he added.