The Green Climate Fund (GCF) has approved $50 million for climate technology investments in Egypt, bolstering the country’s efforts to develop low-emission technologies to reduce carbon intensity by supporting start-ups that specialise in climate-tech.
This follows GCF’s recent milestone of a record volume of climate financing for developing countries, reaching a total of $3.26 billion this year, surpassing the previous record of $2.9 billion in 2021.
According to the Egyptian Cabinet Presidency, the funding is part of the third Novastar Investment Fund programme, a $200 million equity venture aimed at mobilising climate-related financing across five African countries, including the North African nation.
Manal Awad, acting environment minister, said the financing will go towards companies who focus on three main areas of the agricultural sector: services that enhance adaptability and resilience; clean technologies to reduce carbon emissions in economic growth and innovative climate technologies for managing natural resources.
Additionally, the initiative will enable the scaling of affordable climate solutions that have proven successful in other markets, as Egypt is among the countries most exposed to the effects of climate change.
Awad stressed that providing capital to companies working in this particular technology field is essential to expanding their investments in the areas of mitigating emissions and climate change adaptation.
Commenting on the financial boost, the Egyptian Cabinet Presidency said: “It is worth noting that the Novastar Investment Fund seeks, through successful investments, to establish a strong innovation ecosystem in the field of climate technology by engaging key stakeholders and mobilising capital from the private sector to achieve both climate resilience and financial returns.”
Share