Industry is a leading, and growing, source of greenhouse gas (GHG) emissions and will be one of the most challenging sectors to decarbonise, requiring a concerted combination of policy, institutional, and market solutions. By 2050, around 60 percent of heavy industry emission reductions will need to come from technologies that are not currently market ready. Early and accelerated investment in low-carbon and climate-resilient technologies in fast-developing economies will be critical.
The Climate Investment Funds (CIF) established the Industry Decarbonisation Programme (IDP) under the Clean Technology Fund (CTF) to support and accelerate the transition of these high-emitting industrial sectors in developing countries to zero-carbon practice, support the development of clean technology supply chains, and unlock investments in low to net zero-carbon and climate-resilient business models and technologies.Egypt was one of seven countries selected to participate in the CIF IDP and develop an Investment Plan (IP). Participation in the programme, and submission of an IP, secures up to USD 250 million in concessional finance for Egypt to support industrial decarbonisation projects, of which a minimum of 50% must be deployed to the private sector. This funding will be complemented by MDB investment and private sector contributions. The IP is a business plan, to be developed by the Government of the Arab Republic of Egypt (GoE) in cooperation with the CIF’s Multilateral Development Bank (MDB) partners, in this case with the European Bank for Reconstruction and Development (EBRD), World Bank (WB), International Finance Corporation (IFC), and African Development Bank (AfDB). The GoE designated the EBRD as the “Coordinating MDB” to provide overall oversight on the IP preparation process on behalf of the joint MDB group. The IP will lay out government priorities and proposals, identify potential areas for MDB investment and technical assistance, as relevant, and will include mobilisation of complementary co-financing, including from bilateral, multilateral, and private sources.
The objective of the Assignment is to support the development of the Egyptian IDP IP and manage associated tasks and coordination, in collaboration with governmental counterparts, MDB partners, the private sector, and other relevant stakeholders. Specifically, the Assignment will contribute to:
• Coordination of the IP process, including managing inclusive and robust stakeholder engagement processes (e.g., government counterparts, MDBs, CIF Secretariat, private sector, and other relevant organisations).
• Preparation of key inputs to the IP process, including inter alia ToRs for missions; Aide Memoires etc.
• Support the preparation and implementation of scoping/joint missions to Egypt on-site.
• Prepare technical inputs and presentations to inform the scoping/joint missions to Egypt on-site.
• Lead technical drafting of the IP document in consultation with all relevant stakeholders (i.e., MDBs/Government). Draft the IP, produce updates and final version.
• Prepare and contribute to necessary technical assessments to feed into and inform the IP development.
• Develop technical inputs related to IPPG requests.
• Identify and help the GoE and MDBs establish contact with suitable private sector companies enabling consultations for financing decarbonisation projects in such companies.
• Lead the process of collecting and addressing the feedback on the IP drafts (from MDBs, CIF Secretariat, public consultations, TFC members, GoE).
• As needed, lead preparation of the presentation materials required for the TFC meetings Egypt IP session.
• Facilitate consultation meetings and technical discussions with identified key stakeholders (e.g. private sector, development partners, etc.).
• Provide any other relevant technical and/or logistical and coordination support to all IP stakeholders as a “collaborative”, as relevant.
The purpose of this assignment is to support the Government of Egypt, represented by the Ministry of Planning, Economic Development, and International Cooperation (MoPEDIC), in leading and managing a well-coordinated consultation process – both internal and external. This includes facilitating coordination among relevant government entities, MDB partners, and the private sector, as appropriate, to develop the CIF IDP IP for Egypt collaboratively and comprehensively. In addition to MoPEDIC, the assignment will include strong collaboration with the Egyptian Ministry of Industry (MoI) and include their contributions. Outputs of the Assignment (see scope of work and deliverable section) will directly inform the IP’s indicative areas of focus, scope of TA, and indicative pipeline of investments across hard-to-abate industrial sectors.
The assignment should leverage the progress, technical outputs, and networks from existing programmes and relevant coordination mechanisms and workstreams, for example, the Nexus Water-Food-Energy Programme Energy Pillar (NWFE-EP) and the Suez Canal Economic Zone (SCZONE). It should build on existing climate policies and preexisting work conducted on the topics of low carbon transitions and green industrialisation in Egypt, including the low-carbon pathways (LCPs) for the cement and fertiliser sectors, prepared with the support of the EBRD. The assignment should ensure previously identified priority sectors, activities, and technologies for industrial decarbonisation in Egypt are targeted and integrated into the IP.
These priority areas should include, but are not limited to:
• Implementation of key decarbonisation levers of the LCPs in cement, fertilisers, iron/steel, aluminium;
• Deployment of green hydrogen across the entire value chain;
• Deployment of low carbon energy sources specifically relevant to industrial decarbonisation projects and processes;
• Carbon Capture Utilisation and storage (CCUS);
• Energy efficiency and optimisation;
• Demand Side Management (DSM);
• Support P2P framework, scaling renewable capacity, and increasing electrification of industrial processes;
• Circular economy measures (e.g., materials recycling, concrete recycling, steel slag recycling, alternative fuel);
• Fuel switching and supporting the development of alternative and low-carbon fuels and feedstocks (e.g., green hydrogen, biomethane, e-methanol, Sustainable Aviation Fuels (SAF)s);
• Waste heat recovery.
• Fresh water usage efficiency improvements and waste water treatment.
• N2O abatement (for fertiliser production);
• Introduction of alternative raw materials low carbon cement and alternative fuels in the cement production. Support On-site renewable energy production.
• Decarbonisation of mineral extraction and processing, e.g. phosphate;
• Zero emission shipping;
• Eco industrial parks;
• Cross industrial measures;
• Clean technology supply chains;
• Pulp and paper;
• Glass, ceramic and construction materials.