IMF Provides Egypt with $1.3 Billion to Combat Climate Change

In a significant move to support Egypt’s climate change mitigation efforts, the International Monetary Fund (IMF) has approved a new $1.3 billion financing package to support structural reforms under the framework of the National Climate Change Strategy 2050.

Mohamed Maait, Executive Director at the IMF, stated in an interview with Al Arabiya Business that Egypt is set to receive the fourth tranche of its IMF loan—amounting to $1.2 billion—in the coming days, following approval by the Executive Board. Additionally, Egypt will receive $1.3 billion under the Resilience and Sustainability Facility.

According to a joint statement by the Ministries of Finance and Environment, the National Climate Change Strategy has been developed in collaboration with multiple governmental bodies, including the Central Bank of Egypt, and the Ministries of Planning and Economic Development, Environment, Petroleum, Electricity and Renewable Energy, and Water Resources and Irrigation. This collaboration ensures an integrated approach to tackling climate challenges.

10 Key Structural Reforms for Climate Action

The statement outlined a set of 10 major structural reforms in four key areas, including:

1. Accelerating carbon reduction efforts to facilitate Egypt’s transition to clean energy.
2. Analyzing climate-related financial risks to enhance the resilience of Egypt’s economy.
3. Enhancing climate data management to ensure informed decision-making.
4. Building climate adaptation capacity and supporting climate finance by strengthening the financial sector’s ability to cope with environmental challenges and measuring the impact of investment plans and projects on national climate goals.

The statement also highlighted that Egypt’s agreement with the IMF includes implementing structural reforms that will strengthen its global standing ahead of the upcoming COP30 Climate Summit, reinforcing its role as a leader in environmental efforts and green economic initiatives.

Source: Al Arabiya Business