Egypt signs €54M debt swap agreement with Germany to boost energy sector

Egypt has signed a debt swap agreement worth €54 million with Germany. This effort supports the energy sector within the program and represents the state's dedication to sourcing the necessary financing for program implementation. In a major shift, the target to include renewable energy in the energy mix has been moved up to 2030 from 2035, with the goal to account for 42 percent of the energy mix. This target was approved as part of the debt swap program with Germany. The announcement was made during the minister Rania Al-Mashat's participation in a panel discussion during the annual meetings of the Asian Infrastructure Investment Bank (AIIB). Al-Mashat stressed the importance of transitioning from policies to practices to achieve sustainable development goals. Despite significant commitments from the international community, it was observed that these assurances often don't reach countries most in need, undermining many developing countries and emerging economies' access to sustainable, long-term financing. To rectify this, Al-Mashat underscored the need to restructure the global financial program with an emphasis on fair distribution of climate finance. Egypt is also prioritizing a transition to a green economy and has issued the Sharm El-Sheikh Guide to Fair Financing to promote the idea of climate justice and boost fair financing.