• Egypt to receive €21 million EU grant via EIB for decarbonization efforts
• €23 million earmarked for recycling, emissions cuts, and greener industry
• Country targets 42% renewable energy share by 2030 amid $246 billion plan

Egypt has signed a new agreement with the European Investment Bank (EIB) to support its transition to a greener industrial sector. The deal, announced on Sunday, June 15, 2025, involves the use of a €21 million ($24.2 million) grant from the European Union.

The funds are intended to advance Egypt’s decarbonization and recycling goals, particularly within industrial production. Of the total grant, $23 million will support projects aimed at lowering carbon emissions, promoting industrial recycling, and encouraging sustainable manufacturing practices. The remainder will help digitize the Egyptian Environmental Affairs Agency to improve oversight and monitoring.

EIB Vice President Gelsomina Vigliotti said the grant would make climate finance more accessible to local businesses and drive large-scale investment in renewable energy, recycling, and pollution reduction.

Egypt is aiming to generate 42% of its electricity from renewable sources by 2030, in line with its Paris Agreement commitments. The strategy targets emissions reductions across electricity, gas, and transport sectors. Projects under implementation include solar energy plants, public transport modernization, and partnerships with foreign firms to expand solar and wind power.

The energy transition is projected to cost around $246 billion by 2030, with nearly 80% of that budget allocated to emissions mitigation. Much of the required funding is expected to come from international partners such as the EU, the World Bank, and the EIB.

So far, the EIB has helped mobilize up to $312.6 million in green investments in Egypt, including a $155.7 million loan to support sustainable industry. Planning and International Cooperation Minister Rania A. Al-Mashat described the agreement as a milestone in Egypt’s green transition, highlighting the urgency posed by climate change and resource stress.