Green energy could save Egypt’s economy

Egypt faces significant economic, social and environmental challenges, especially in the period of transformation currently taking place. Its financial reserves have fallen from $36 billion in December 2010 to $16.5 billion in December 2013. This amount covers less than three months of imports, putting the country in a critical situation. Real gross domestic product growth is now estimated at 2.2%, while it was about 4.7% in 2008. Furthermore, the unemployment rate was estimated at about 13% at the end of 2012, meaning 3.5 million people are searching for jobs. It is likely that this figure has risen further during the past months.

The challenges facing the Egyptian economy cannot be adequately addressed by following the traditional development model that doesn’t take into account the social and environmental dimensions in policy- and decision-making. Shortages in water, food and energy are evidence of the mismanagement of natural resources, which is coupled with increasing levels of pollution, a depletion of natural resources and a degradation of lands and the ecosystem.

The transitional period taking place in Egypt provides a unique opportunity to move toward a sustainable development path. Through “greening” the economy, alongside the adoption of a participatory approach that takes into account the interests of society, solutions will become available to address the current challenges. This will create new jobs, stimulate and diversify the economy, enhance competitiveness and promote exports, while achieving greater social justice through integrating the poor into economic activities.