Egypt’s Ministry of Local Development and Environment is stepping up efforts to expand climate finance and support sustainability-focused projects in cooperation with the banking sector, as part of advancing the country’s Vision 2030 and addressing mounting climate challenges.

In a statement, the ministry said Minister Manal Awad met with Dalia Abdel Kader, Head of Sustainable Finance at Commercial International Bank and Chair of Sustainable Finance at the Federation of Egyptian Banks, to explore mechanisms for cooperation, in the presence of environmental and climate officials.

Awad said discussions focused on establishing structured cooperation channels with the banking sector through a proposed “sustainable finance alliance” aimed at integrating climate change mitigation and adaptation into financing frameworks, while identifying priority investment areas.

She noted that Egypt has identified a number of structural gaps that could be transformed into investment opportunities, particularly in water scarcity, agriculture, food security, and energy, as well as financing for entrepreneurs, the informal sector, and education.

Awad added that the proposed alliance could be presented through the National Council for Climate Change, which brings together key sectors including water, agriculture, energy, and housing. She also highlighted the importance of leveraging climate data tools to assess investment risks and opportunities.

The meeting further discussed the implementation of pilot projects based on the competitive advantages of different governorates, with a focus on developing value chains for local products to enhance self-sufficiency and boost exports.

Both sides also explored cooperation on a sustainable fashion initiative implemented in partnership with GIZ, including plans to establish a creative hub focused on recycling and women’s economic empowerment.

Abdel Kader said the banking sector can play a pivotal role in advancing sustainability by translating national strategies into viable business models and financing projects that address development challenges, particularly in water and agriculture.

She added that collaboration with the ministry would support capacity building and the development of tailored financial products for sustainability-focused projects aligned with national priorities.

The meeting also reviewed the “Next Gen” programme launched by the Federation of Egyptian Banks, which aims to train specialists in environmental and social risk management in line with central bank policies and Egypt’s sustainable development strategy.

According to the ministry, the programme targets final-year students and recent graduates, helping bridge the gap between academic education and labour market needs while equipping participants with practical experience in sustainable finance.

Awad affirmed the ministry’s readiness to provide technical support and training to strengthen partnerships with the banking sector and build national capacity in sustainability-related fields.

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