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TECHNICALASSISTANCEREPORT
ARABREPUBLICOFEGYPT
ClimatePublicInvestmentManagement
Assessment
MARCH2023
PREPAREDBY
EivindTandberg,CristianAlonso,NataliyaBiletska,JacquesCharaoui,KatjaFunke,EdHearne,MiaPineda,andTjeerdTim
Authoring
Departments:
FiscalAffairsDepartment
DISCLAIMER
ThecontentsofthisreportconstitutetechnicaladviceprovidedbythestaffoftheInternationalMonetaryFund(IMF)totheauthoritiesoftheArabRepublicofEgypt(the"TArecipient")inresponsetotheir
requestfortechnicalassistance.Thisreport(inwholeorinpart)orsummariesthereofmaybedisclosedbytheIMFtoIMFExecutiveDirectorsandmembersoftheirstaff,aswellastootheragenciesor
instrumentalitiesoftheTArecipient,andupontheirrequest,toWorldBankstaffandothertechnical
assistanceprovidersanddonorswithlegitimateinterest,unlesstheTArecipientspecificallyobjectsto
suchdisclosure(seeOperationalGuidelinesfortheDisseminationofTechnicalAssistanceInformation—
http://www.IMF.org/external/np/pp/eng/2013/061013.pdf)
.Disclosureofthisreport(inwholeorinpart)orsummariesthereoftopartiesoutsidetheIMFotherthanagenciesorinstrumentalitiesoftheTArecipient,WorldBankstaff,othertechnicalassistanceprovidersanddonorswithlegitimateinterestshallrequiretheexplicitconsentoftheTArecipientandtheIMF’sFiscalAffairsDepartment.
ThistechnicalassistancewasprovidedwithfinancialsupportfromtheGovernmentsofJapanandtheSwissSecretariatforEconomicAffairs(SECO).
IMF|TechnicalReport–EgyptClimatePIMA|
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TableofContents
AcronymsandAbbreviations 2
Preface 3
ExecutiveSummary 4
SectionI.ClimateChangeinEgypt 8
A.ClimateChangeandPublicInfrastructure 8
SectionII.ClimateAssessmentofPublicInvestmentManagementinCountry 10
A.ClimatePIMAFramework 10
B.DetailedAssessment 11
C.Cross-CuttingIssues 16
RECOMMENDATIONS 19
Boxes
1.NCCS2050GoalsandCosting
9
2.AGovernanceApproachforaNationwideEnergyTransitionintheNetherlands
13
3.StateAssetInsuranceSchemeinIndonesia
16
4.LawsShapingEgypt’sClimateFramework
17
Figures
1.ClimatePIMAResults
5
2.ClimatePublicInvestmentManagementAssessmentFramework
10
Tables
1.SummaryAssessment
6
2.SummaryRecommendations
7
Appendix1.ActionPlan 20
Appendix2.C-PIMAQuestionnaire 23
Appendix3:DetailedC-PIMAScores 27
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AcronymsandAbbreviations
BAU........Business-as-usual
CC..........Climatechange
EEA........EgyptEnvironmentalAgency
EL...........EnvironmentalLaw
ESSG.....EnvironmentalSustainabilityStandardsGuide
FAD........FiscalAffairsDepartment
GFMIS....GovernmentFinancialManagementInformationSystem
GHG.......GreenHouseGas
IMF.........InternationalMonetaryFund
ISIPPM...IntegratedSystemforInvestmentPlanPreparationandMonitoring
IT............Informationtechnology
MoE........MinistryofEnvironment
MoF........MinistryofFinance
MPED.....MinistryofPlanningandEconomicDevelopment
MRV.......Monitoring,ReportingandVerification
NCCC.....NationalClimateChangeCommittee
NCCS.....NationalClimateChangeStrategy
NDC........Nationallydeterminedcontribution
NDRMS..NationalDisasterRiskManagementStrategy2030
PBB programandperformancebudgeting
PC Publiccorporation
PIM Publicinvestmentmanagement
PIMA.......PublicInvestmentManagementAssessment
PPP........Public-privatepartnership
SNG........Subnationalgovernment
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Preface
InresponsetoarequestoftheMinistryofFinance(MoF)andtheMinistryofPlanningandEconomicDevelopment(MPED),ateamfromtheIMF’sFiscalAffairsDepartment(FAD)andLegalDepartment(LEG)undertookaPublicInvestmentManagementAssessment(PIMA)andaClimatePIMA(C-PIMA)
duringSeptember27toNovember10,2022.ThemissionteamwasledbyEivindTandbergand
comprisedCristianAlonso(remotely),JacquesCharaoui,andTjeerdTim(allFAD),MiaPineda(LEG),KatjaFunke,andEdHearne(bothFADexperts).NataliyaBiletska,HosamHasan,andMohamedYehiaAbdElKarim(allWorldBank),andDinaMohamedEldemerdashElkhishin(WorldBankconsultant)alsocontributedtotheassessment.
TheteamwasreceivedbyMr.AhmedKamaly,DeputyMinisterforPlanningAffairs,MPED,andMr.
AhmedKouchouk,Vice-MinisterforFiscalPolicies,MoFwhoprovidedadviceandorientationsaheadoftheassessment.Attheendofthemission,theteampresentedthemandDr.MohamedMaait,MinisterofFinanceitspreliminaryconclusionsandprovidedthemwithacopyofthedraftmissionreport.
ThemissionmetwiththedepartmentsandservicesinvolvedinpublicinvestmentwithintheMoFand
MPED.Inparticular,withinMoFthemissionheldmeetingswiththeMacro-FiscalPolicyUnit(MFPU),theGeneralBudgetDepartment,theEconomicAuthoritiesandUnitsBudgetDepartment,theFinancing
Department,theDebtManagementUnit,theAccountsandFinancialDirectoratesDepartment,theFinalAccountsDepartment,andthePPPCentralUnit.WithintheMPED,themissionmetwithMr.Gameel
Helmy,MinisterAssistantformonitoringaffairs,thePlanningAffairsFeasibilityStudies,theRegionalPlanningDepartment,thePlanPreparationandMonitoringDepartment,andthePPPsUnit.
ThemissionalsometwithseniorrepresentativesfromtheMinistryofAgriculture;theMinistryof
Environment;theMinistryofInternationalCooperation;theMinistryofTransport;theMinistryofHousing,
UtilitiesandUrbanCommunities;theMinistryofHealth;theMinistryofEducation;theMinistryof
PetroleumandMineralResources;theEgyptianNaturalGasHoldingCompany;theAccountabilityStateAuthority(ASA);theNationalInvestmentBank(NIB);theNewUrbanCommunitiesAuthority(NUCA);theNationalTelecomRegulatoryAuthority;theEgyptianWaterandWastewaterRegulatoryAgency,the
EgyptianElectricityUtilityandConsumerProtectionAgency,theGasRegulatoryAuthority,theNationalCentreforPlanningStateLandUses(NCPSLU),theGeneralAuthorityforGovernmentServices,CairoGovernorate;andIsmailiaGovernorate.Theteamalsometwithlocaltechnicalandfinancialpartnersattheendofthemissiontodiscusstheassessmentandidentifyfutureavenuesforcooperation.
ThemissionteamwouldliketothanktheEgyptianauthoritiesfortheircooperationandparticipationin
constructivediscussionsonalltopicsraisedduringthemission.Themissionwouldespeciallyliketo
thankstafffromtheMPED,inparticularMr.IsmailYousef;andfromtheMoF,Mr.AlaaAbdelRahmanfortheirexcellentsupportinorganizingthemission,settingupmeetingsandprovidingdocumentation.
TheteamwouldalsoliketoextenditsthankstoMr.SaidBakhache,SeniorResidentRepresentativeof
theIMFinEgypt,andMr.KarimBadr,localeconomist,fortheoutstandingandreliablesupporttheyprovidedtotheteamduringtheremotemission.Finally,theteamwouldliketothanktheteamof
interpretersfortheirextensivelinguisticsupportduringthemission.
IMF|TechnicalReport–EgyptClimatePIMA|
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ExecutiveSummary
EgyptisathighriskfromnaturalhazardsandisconsideredhighlyvulnerabletoclimatechangeduetoitsdependenceontheNileRiver.ThedenselypopulatedNileDeltaisoneoftheworld’sthree“extreme”
vulnerabilityhotspots.Climatechangerisksincluderisingsealevels,droughts,heatwaves,sandand
duststorms,heavyrain,flashfloods,androckslides.InitsNDC,Egypthascommittedtolow-carbonandclimateresilientgrowth;achallengethatisexacerbatedbyhighpopulationgrowth,urbanization,and
limitedfiscalspace.Egypt’spopulationisexpectedtogrowby44percentfrom2022to2050.
Egyptisthehostofthe27thConferenceofpartiesundertheUNClimateChangeConventionin
November2022,andthishashadmajorimpactsonclimatechangeawarenessinthecountry.Anumberofpoliciesandmeasureshavebeeninitiatedtoaddressclimatechange.Egypt’sNationalClimate
ChangeStrategy2050setsoutapathwayfortransitioningtoalow-carbonandclimate-resilienteconomy
andsubsequentpublicinfrastructure,includingstrengtheningthelegal,regulatory,andinstitutionalrequirementsformainstreamingclimatechangeintopublicinvestmentplanning.Egypthasdefined
quantitativetargetsforreducinggreenhousegasemissionsofthreemajorsectors(energy,transport,andoil)by23.5percentby2030comparedtobusiness-as-usual.Objectivesforclimatechangeadaptation,
stillatanearlystage,willfocusonvulnerablesectorsanddevelopingaclimateadaptationplan.
ThisClimatePublicInvestmentManagementAssessment(C-PIMA)assessesfivekeypublicinvestmentmanagementpracticesinEgyptfromaclimatechangeperspective.Itwasconductedjointlywithan
assessmentbasedontheexistingPIMAframework,whichisdescribedinaseparatereport.
TheC-PIMAindicatesthatEgypthasimplementedimportantimprovementsinclimateawareplanningandcoordinationacrossthepublicsector,andsomeinitialstepstoreflectclimatechangeissuesin
appraisalandselectionofinvestmentprojects,butthatsignificantworkremainsintheseareas.Climatechangeisnotfullyintegratedinnational,sectoral,constructionandspatialplanningframeworksand
regulations,Coordinationofclimate-relevantpublicinvestmentsislargelylimitedtothecentral
governmentandthePPPframeworkdoesnotaddressclimaterisks.Sofartherehasbeenlimited
progressinensuringthatbudgeting,portfoliomanagementandfiscalriskmanagementisclimate
sensitive.Climate-relatedinvestmentspendingisnotsystematicallyidentifiedinbudgets.Thereisnodisasterriskmanagementplan,andthefiscalriskstatementdoesnotincludeclimateimpactson
infrastructure,Figure1andTable1)summarizetheC-PIMAfindings.
TheweaknessesintheoverallframeworkforpublicinvestmentdescribedinthePIMAreport,includingweakprojectappraisalandthelackofmedium-termbudgeting,alsounderminethecapacitiesfor
climate-sensitivepublicinvestmentmanagement.Theassessmentofclimate-sensitiveappraisalintheC-
PIMA,whichislimitedtothisspecificaspectoftheappraisalprocess,isstrongerthantheoverall
assessmentoftheappraisalfunctioninthePIMA.However,thesomewhathigherassessmentontheclimateappraisaldimensionisnotsufficienttolifttheoverallqualityofappraisal.
Themissionproposesthreemainrecommendationstoaddresscurrentweaknessesandfurtherimprovetheclimatechangeawarenessofpublicinvestmentmanagement.Themissionrecommendsthatthe
governmentofEgyptintegratesstrategiesandobjectivesforclimatechangeadaptationandmitigationinallrelevantplanningprocesses,reflectclimatechangeconsiderationsinbudgetingandportfolio
managementdecisions,andstrengthenmanagementofclimate-relatedfiscalrisks.Themissionoutlines
IMF|TechnicalReport-EgyptClimatePIMA|
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aseriesofactivitiestoimplementtheserecommendations,andatime-boundactionplanforthedifferentactivities(Table2andAppendix1).
Figure1.ClimatePIMAResults
IMF|TechnicalReport-EgyptClimatePIMA|
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Table1.Egypt:SummaryAssessment
Phase/Institution
InstitutionalStrength
Reform
priority
PIMAClimateChange
C1
Climate-awareplanning
MEDIUM.Climatechangeisnotfullyintegratedinnational,sectoral,constructionandspatialplanningframeworksandregulations,forclimatechange
mitigationandadaptation.
Medium
C2
Coordinationbetweenentities
MEDIUM.Theframeworktoguideandcoordinatemostlyfocussesonclimatechange(mitigation)-relatedpublic
investmentsofthecentralgovernment.
Medium
C3
Projectappraisaland
selection
MEDIUM.Guidelinesrequireclimate-relatedanalysisaccordingtostandardmethodologyandvision2030specifiesclimatecriteriaforprojectselection,butPPPframeworkdoesnotaddressclimaterisks.
Medium
C4
Budgetingandportfoliomanagement
LOW.Climate-relatedinvestmentspendingarenotidentifiedinasystematicway,hinderingactive
managementandoversight,
High
C5
Riskmanagement
LOW.Thereisnodisasterriskmanagementplan,andthefiscalriskstatementdoesnotincludeclimateimpactsoninfrastructure,butbudgetcontingencycanbeusedfor
naturaldisasters.
High
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Table2.Egypt:SummaryRecommendations
Recommendations
Priority
Responsible
1.Integratestrategiesandobjectivesforclimatechangeadaptationandmitigationinnational,sectoral,
constructionandspatialplanningprocesses
?Publishaclimatechangechapterinthepublicinvestmentplans(2024).
?Developcentralizedguidanceandsupporttoagenciesforthepreparationandcostingofclimate-awarepublic
investmentstrategies(2023–24).
?Integratenationalclimateobjectivesandclimate-relatedcapitalprojectsinsectoralplans(2024–25).
?Integrateclimatechangeinconstructioncodes,andurbanandspatialplanningprocesses(2023–25).
Medium
MPED,MoE,in
coordinationwithotheragencies.
2.Reflectclimatechangeconsiderationsmore
comprehensivelyinprojectselection,budgeting,andportfoliomanagementdecisions
?Identifyclimate-relatedinvestmentspendinginplansandbudgets(2023–24).
?Introducemoredetailedclimatechange-related
methodologiesforconductingprojectappraisal(2024).
?Carryoutandpublishex-postreviewsofclimateimpactsofinvestmentprojects(2024).
?Createaregisterofkeyinfrastructureassetsincludinginformationontheirexposuretoclimatechange-relatedrisks(2024–25)
High
MPED,MoF,in
coordinationwithMoEandotheragencies.
3.Strengthenmanagementofclimate-relatedfiscalrisks
?Assessandmonitorclimate-relatedrisksonkeyinfrastructureassets(2025).
?ExpandtheFiscalRisksStatementtoincludeclimate-relatedfiscalrisks(2024).
?Developcomprehensiveclimateanddisasterriskmanagementplan(2023–25).
?Considerneedforadditionalfinancingmechanismstomanageclimaterisks(2024–25).
High
MoF,MPED,in
coordinationwithMoE.
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SectionI.ClimateChangeinEgypt
A.CLIMATECHANGEANDPUBLICINFRASTRUCTURE
1.Egyptishighlyvulnerabletoclimatechange.EgyptisathighriskfromnaturalhazardsandishighlyvulnerabletoclimatechangeduetoitsprimarydependenceontheNileRiver,1ranking107thof
182countriesinthe2021ND-GainCountryIndex.2ThedenselypopulatedNileDeltaisoneoftheworld’sthree“extreme”vulnerabilityhotspots.3Futureprojectionsidentifyclimatechangerisksasrelatedtosealevelrises,droughts,andincreasesinthefrequencyandintensityofextremeweatherevents,suchas
heatwaves,sandandduststorms,heavyrain,flashfloods,androckslides.Ifclimatechangeisnot
mitigatedandEgyptdoesnotsufficientlyadapt,keyeconomicandsocialsectorsinEgyptwillbe
impacted,includingenergy,watermanagement,agriculture,tourism,health,fisheries,coastalzones,andtheSuezCanal.GivenEgypt’sgeographicalpositionandeconomiccapacity,someofthesecouldhavearegionalandglobalimpactaswell.
2.Egypthascommittedtoalow-carbonandclimateresilientdevelopmentstrategy.Inits
recentlyupdatednationallydeterminedcontribution(NDC),Egypthasincludedquantitativetargetsfor
reducingtheGreenHouseGas(GHG)emissionsofthethreemajorGHG-emittingsectors(energy,
transport,andoil)by23.5percentby2030comparedtoabusiness-as-usual(BAU)scenario.TheNDC’sobjectivesforclimatechangeadaptation,stillinanearlystage,willfocusonvulnerablesectors4and
developingaclimateadaptationplan.5
3.Thechallengesoflow-carbonandclimateresilientgrowthareexacerbatedbyhigh
populationgrowth,urbanization,andlimitedfiscalspace.Egypt’spopulationisexpectedtogrowby44percentfrom2022to2050.6Morethan50percentofitspeoplewillthenbelivinginanurban
environment.ThisnotonlyrequiresdecouplingpopulationgrowthandGHGemissions,butalso
reshapingdenselypopulatedurbanareaswithlegacyinfrastructureintolow-carbon,climate-resilientenvironments.Authoritieshaveindicatedthattheinvestmentsneededwillbehigh,andtheabilityto
financethemlimited.Whileamoreeffectivepublicinvestmentmanagementframeworkwillnotdirectlypositivelyimpactfiscalspace,amoreeffectiveframeworkwillhelptoachievegreaterclimatechangeeffectsusingthesameamountofresources.
4.Egyptisintroducinganinstitutionalclimatechangegovernanceframeworktosupportitsclimatechangeobjectives.Egypt’sNationalClimateChangeStrategy(NCCS)2050setsoutapathwayfortransitioningtoalow-carbonandclimate-resilienteconomyandsubsequentpublicinfrastructure,
includingstrengtheningthelegal,regulatory,andinstitutionalrequirementsformainstreamingclimatechangeintopublicinvestmentplanning.Box1includesanoverviewofthefivekeyobjectivesofthe
1ClimateRiskProfile:Egypt(2021):TheWorldBankGroup.
2TheND-GAINIndexsummarizesacountry'svulnerabilitytoclimatechangeandotherglobalchallengesincombinationwithitsreadinesstoimproveresilience.Egyptwasranked92ndin2000andisnowranked107thNorwayhasthehighestscoreandis
ranked1st.UniversityofNotreDame(2020):NotreDameGlobalAdaptationInitiative.
3ClimateRiskProfile:Egypt(2021):TheWorldBankGroup.
4ThesectorsincludedareWaterResources&Irrigation,Agriculture,CoastalZones,UrbanDevelopment,andTourism.
5ThegovernmentofEgypthasonlyrecentlybegundevelopingaNationalClimateAdaptationPlan.
6UNWorldPopulationProspects2022.
IMF|TechnicalReport-EgyptClimatePIMA|
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NCCS2050.ItsnewNationalClimateChangeCommittee(NCCC),themaindecision-makingbodyforclimatechange,comprisestheprimeministerandministersofkeyministries.Itshapesitsworking
agendathroughvarioustechnicalworkinggroupsandissupportedbytheMinistryofEnvironment(MoE).
Box1.NCCS2050GoalsandCosting
Goal1:Sustainableeconomicgrowthandlow-emissionsdevelopment,e.g.:
?EgyptaimstoincreasetheshareofrenewableenergysourcesintheEgyptianenergymix,reduceGHGemissionsassociatedwithfossilfueluse,increasingenergyefficiency,andincreasesustainable
productionofgoodsandwastemanagement.
Goal2:Adaptivecapacityandresiliencetoclimatechange,e.g.:
?Egyptaimstoprotectitscitizensfromthenegativehealthimpactsofclimatechange,minimizelossanddamagetocountryassets,ecosystemsandresources,developresilientinfrastructureandservices,
implementdisasterriskreductionsystemsandstrengthenthewomen’sresponseconsiderationstohelpthemadapttoclimatechange.
Goal3:Climatechangeactiongovernance,e.g.:
?Definerolesandresponsibilitiesofallstakeholders,improvetheinternationalclimate-changerelatedprofileofEgypttoattractfurtherinvestmentsandfinancingopportunities,sectoralpolicyreformsforclimatechangeadaptationandmitigation,enhanceinstitutional,proceduralandlegalclimatechange-relatedarrangements.
Goal4:Climatefinancinginfrastructure,e.g.:
?Promotelocalgreenbanking,greencreditlines,greenbonds,privatesectorengagementinclimatefinance,andpromotionofgreenjobs.
Goal5:Scientificresearch,technologytransfer,knowledgemanagement,awareness,e.g.
?Strengthentheroleofscientificresearchandtechnologytransferforclimatechangemitigationandadaptation,facilitatingthedisseminationofclimate-relevantknowledgemanagementamong
governmentinstitutionsandcitizens.
TheNCCS2050includesasummaryoverviewofthecostofmitigationandadaptationprogramsinthe
differentsectorsdiscussedunderthefivegoalsoftheNCCS2050goals,equivalentto80percentof2022GDP:
Mitigationprogramcosts
MillionUSD
Adaptationprogramcost
MillionUSD
Industry
130
Agriculture
52,400
Electricity
144,153
Transport
1,273
Petroleum
1,689
CivilAviation
9
Transport
57,477
Irrigation,WaterResources
59,108
CivilAviation
25
Biodiversity
199
HousingandUtilities
31
Waste
7,627
Requiredfunding
211,133
Requiredfunding
112,990
Source:NCCS2050
IMF|TechnicalReport-EgyptClimatePIMA|
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SectionII.ClimateAssessmentofPublicInvestmentManagementinCountry
A.CLIMATEPIMAFRAMEWORK
5.TheClimatePIMAassessesfivekeypublicinvestmentmanagementpracticesfromtheclimatechangeperspectiveandisanextensionoftheexistingPIMAframework.Figure2.
describesthemainelements.
Figure2.ClimatePublicInvestmentManagementAssessmentFramework
6.TheCCPIMAcoversthefollowingspecificissues:
?C1.Climate-awareplanning:Ispublicinvestmentplannedfromaclimatechangeperspective?Thisisnecessarytoensurethatlong-andmedium-termplanscontributetomeetingclimateobjectivesandfacilitateeffectiveprioritizationanddecision-making.
?C2.Coordinationbetweenentities:Isthereeffectivecoordinationofdecisionmakingonclimate
change-relatedpublicinvestmentacrossthepublicsector?Inadditiontothecentralgovernment,
subnationalgovernments(SNGs),publiccorporation(PCs)andprivatesectorentitiesplaykeyrolesinrealizingclimate-relatedpublicinvestment.ClimateadaptationinvestmentswilloftentakeplaceattheSNGlevel,andbothPCsandprivatesectorentitiesmayplaykeyrolesforinstanceinenergy
production.
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?C3.Projectappraisalandselection:Doprojectappraisalandselectionincludeclimate-related
analysisandcriteria?Thisisnecessarytoensurethatthemosteffectiveandefficientinvestmentsareprioritized.Thisservestomaximizetheclimateimpactsofpublicinvestmentswithinavailable
resources.
?C.4Portfoliomanagementandoversight:Isclimate-relatedinvestmentspendingsubjecttoactive
managementandoversight?Publicinvestmentprojectsaresubjecttonumerousimplementation
challenges–climateinvestmentsarenoexception.Becausetheclimatebenefitsmaybeless
tangibleandmoredifficulttoquantifythanotherprojectbenefits,systematicandconsistentbenefitsmanagementovertheprojectlifecycleiscritical.
?C5.Riskmanagement:Arefiscalrisksrelatingtoclimatechangeandinfrastructureincorporatedinbudgetsandfiscalriskanalysisandmanagedaccordingtoaplan?Thelikelihoodofclimaterelateddisastersisexpectedtoincreaseovertime.Theimpactsoftheserisksonpublicinfrastructuremustbesystematicallyassessedandmonitored,tofacilitateadequateandeffectiveriskmitigation.
B.DETAILEDASSESSMENT
C1.Climate-awarePlanning(Strength:Medium;ReformPriority:High)
7.Egypthasstartedincorporatingclimateintopublicinvestmentplans,buttheydonotyetconsiderclimatetargetsadequately.Egypt’sNDCandNCCS2050containvariousobjectives,somequantitativetargetsformitigation,andsomequalitativemeasuresforadaptation.TheNCCS2050alsoincludesmeasurestostrengthenoftheclimategovernanceframework,includingmeasuresto
mainstreamclimatechangeintopublicinvestmentmanagement.ThroughtheUnifiedPlanningLaw,7
(UPL),theMinistryofPlanningandEconomicDevelopment(MPED)hasintroducedacomprehensive
approachtointegratingclimatechange,aspartofbroadersustainabilityconsiderations,intolong-term,
medium-term,andannualnationalplanningprocesses.Authoritiesarenowimplementingtheframework,inparticularthroughtheintroductionoftheEnvironmentalSustainabilityStandardsGuide(ESSG),8
which,e.g.,providesbroadguidancetoidentifygreeninfrastructureprojects.Climatechange
considerationsandtargetshavenotyetbeenfullyintegratedintonationalandsectoralpublicinvestmentplans;sofar,theattentionhasfocusedmoreonmitigationthanadaptation,andplanslackinformation
aboutcostsofpublicinvestmentprojects,andtheireffectsonclimatetargets.
8.Constructionandspatialplanningregulationsdonoteffectivelyaddressclimate-relatedrisks,therecentlyintroducedgreenbuildingcodehasnotyetproveditseffectiveness.The
MinistryofHousing’sgreenbuildingcodeprovidesguidanceforenergyefficientconstructioninthebuiltenvironment,butdoesnotaddressotherkeysectors,suchasindustryandenergy.Further,itdoesnotcoveradaptation.Thegovernmentisdevelopingaclimatevulnerabilitymapthatincludesspatialclimatechangeriskinformationfortheentirecountryuptotheyear2100.Authoritiesarenotyetdefininga
comprehensiveandconsistentsetoflocallyspecificrestrictionsonconstructioninareasexposedto
climatechangerisksoracomprehensiveregisterofup-to-dateconstructionandspatialplanningclimatechangemitigationandadaptationrequirements.Theeffectivenessofconstructionandspatialplanning
7
8
Articles1,2,and7oftheUnifiedPlanningLaw18/2022,adoptedinJune2022.
TheESSGwasintroducedthroughcabinetmeetingresolution115,2020.
IMF|TechnicalReport–Egypt
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