Why green transport is driving Egypt’s public investment strategy

Egypt implemented around $4.4 billion in green public investments during the 2024/25 fiscal year, with green transport projects accounting for the largest share, according to a government report reviewed by Minister of Planning and Economic Development Ahmed Rostom.

The report highlights the government’s efforts to integrate environmental sustainability into national development plans, expand green public investment, and support the transition to a green economy alongside climate change mitigation and adaptation initiatives.

Green transport projects accounted for 71.5% of total green investments, followed by projects under the presidential Decent Life initiative at 10.5%, sustainable urban development at 8%, environmental improvement at 4.5%, agriculture and irrigation at 3%, clean energy at 1.5%, with the remaining investments allocated to the communications sector.

According to the report, around 87% of green public investments were directed toward climate mitigation projects, while the remaining 13% supported climate adaptation initiatives.

Rostom said the growing share of green public investment reflects the government’s efforts to expand environmentally sustainable projects under Egypt’s National Climate Change Strategy and broader green transition agenda.

He added that the continued increase in green investment has helped improve Egypt’s ranking in the Public Investment Management Assessment (PIMA) from a climate perspective.

The government aims to increase green public investment from 15% of total public investment in FY2020/21 to around 60% by FY2026/27.

Rostom said the target underscores the government’s commitment to advancing sustainable development and accelerating the transition to a green economy by directing more public spending toward environmentally friendly projects, improving resource efficiency, reducing emissions, and strengthening the resilience of key sectors to climate change.

The ministry also plans to integrate environmental sustainability criteria across every stage of the state’s investment planning process, from project preparation and implementation to monitoring and evaluation. The goal is to support more sustainable and inclusive growth, advance Egypt Vision 2030, and strengthen the country’s role in regional and international climate action.

During FY2024/25, green public investments supported several strategic projects, including the Cairo Metro, the high-speed electric rail network, new and renewable energy plants, integrated solid waste management systems, and hazardous medical waste treatment facilities.

Climate adaptation investments included wastewater treatment plants, canal rehabilitation and lining projects, desalination facilities, coastal protection and development initiatives, soil improvement projects, and upgrades to on-farm irrigation systems.

Under the Decent Life initiative, green public investments also funded the construction and modernization of wastewater treatment plants, canal rehabilitation and lining works, and the construction and upgrading of drinking water treatment facilities.