Dr. Hossam Badrawi Official Website
Green Egypt, a vision , strategy , and opportunity
December 2013
By Dr. Hossam Badrawi
Blackouts in Cairo, long lines of cars at Gas stations, an unusual picture of the heavily populated city in May 2013 like what has never happened before. It became common to wake up at the dawn to go to gas stations before lines starts to form ,and people crumble to find energy for their cars.
Moslem Brotherhood Ex President Morsi in one of his strangest speeches before the 30 th of june uprise of the people of Egypt against him ,referred to a possible conspiracy of the state institutions against his presidency. He stated that their is no problem in electricity supply or in gas station capacity to supply energy to highly consuming population, but it was just corruption in management and accused small employees in service stations of causing the mass problem.
It was one of the features of incompetence of managing sensitive issue to the public , that accumulated in a crescendo manner with many other political signs and social unrest to explode in a unique dated uprising against extremism ,political stupidity and economic failures.
Six decades ago , sustainable energy supply , was one of the reasons of the political conflict between Egypt and the US when the world bank under the pressure of the US refused to co finance building the high Aswan Dam , which proved to be a major hydro power to generate half of Egypt’s requirement of electricity at the time.
Government policies year after year to subsidize oil and gas , to keep their prices within the capacity of the poor, became a sensitive political issue to touch , while every one knows that it does not serve the poor , but the rich larger consumers. Yet, these policies became a populous way to stimulate anger and dissatisfaction within the masses against any government who tries to resolve the issue.
At the same time , Economic Global competition is becoming tougher and Egypt needs new engines of growth to drive its economy and create jobs .What if there is an answer to all of these challenges, that can also accommodate new investments , avoid fuel crises and rewards the society ?
This chapter of the book justifies green transformation as an answer for the future of Egypt in particular. Yes it is important to the whole world to think and act green, however it is a particular issue for Egypt . The country faces tremendous challenges in its economic growth, but at the same time ,with its genius geographic position ,carries
opportunities ,relatively more than other countries, to use the green transformation to move effectively towards new era of development. New ways and unorthodox tools can overcome the gap in starting lines between nations in the race for development, as all countries would be starting from almost same position in green transformation which give some nations ,with potential green edge ,a relatively better opportunity .
The Green Transformation can be defined as the transition to a low-carbon economy characterized by new and renewable energy and sustainable environmental practices. Countries and companies that catch this wave early on will participate in this economic growth.This will have particularly important impacts on energy, construction, transportation, agriculture, manufacturing, tourism and retail and other aspects of life.
The concept of a “Green Transformation” is still relatively new at least in the minds of public in Egypt. It is not easy for traditional governments in developing countries, sinking in solving existing political unrest , and economic challenges to really see the opportunity versus the risk of going that path. By making it a central focus, i am seeking to create awareness and stimulate dialogue leading to new effective government policies, industry strategies and educational initiatives that will enable Egypt to play a leading role in this global transition with local economic, environmental and social benefits that can help the country crossing many developmental obstacles. I also would like to open the eyes of donors, investors to a great potential for particular successful business and profit making at the medium and long term in Egypt.
Renewable energy technologies are essential contributors to the energy supply portfolio, as they contribute to world energy security, reduce dependency on fossil fuels, and provide opportunities for mitigating greenhouse gases. The International Energy Agency has defined three generations of renewable energy technologies, reaching back over 100 years:
First-generation technologies emerged from the industrial revolution at the end of the 19th century and include hydropower, biomass combustion, geothermal power and heat. These technologies are quite widely used.
Second-generation technologies include solar heating and cooling, wind power, modern forms of bioenergy, and solar photovoltaics. These are now entering markets as a result of research, development and demonstration (RD&D) investments since the 1980s. Initial investment was prompted by energy security concerns linked to the oil crises in 1973 in which Egypt played a major role through its war with Israel, in which oil production was withhold by Arab producers in support of Egypt’s quest to liberate Sini , but the enduring appeal of these technologies is due, at least in part, to environmental benefits.
Third-generation technologies are still under development and include advanced biomass gasification, biorefinery technologies, concentrating solar thermal power, hot-dry-rock geothermal power, and ocean energy.
First-generation technologies are well established. However, second-generation technologies and third-generation technologies depend on further promotion by the public sector and support policies of nations who can grasp the opportunity. The introduction of mandatory renewable energy targets is one important way in which governments can encourage the wider use of renewables. At the same time some countries has advantages over others in their renewable resources, and here comes Egypt at the front line in both solar and wind supply.
On the other hand ,we all know that there is now broad consensus about the danger of climate change. Again , while Egypt has relatively small impact on carbon emission to the climate yet it is one of those countries who will be majorly affected . Business as usual to face that is simply not an option any longer. People must realize that in 50 years the world will change dramatically. The coming Green Change should logically impact
macroeconomy and affect the micro daily life of people at the same time. The question is , who is capable to grasp the opportunity , see the benefits, and prevent potential disasters.
So , what is happening globally in this respect and how this can impact plans of green transformations in Egypt.? what is the current situation in Egypt and where do we want to go?. Does Egypt has real relative advantage? How can this be made to serve development and make life of Egyptians better?
Can Egypt do it alone? And who can partner with Egypt and benefit as well from taking this path?
I am sure answering these questions can demonstrate the opportunity not only for Egyptians but for local and foreign investors. I am confident a successful Green Transformation of Egypt’s economy can offer multiple, simultaneous and interrelated benefits that can boost Egypt’s competitiveness in all aspects of life. It will also save the country from potential dangers of climate change.
Global situation
Renewable energy targets exist in at least 66 countries around the world, including the 27 European Union countries, 29 U.S. states, and 9 Canadian provinces ( 2013 ). Most targets are for shares of electricity production, primary energy, and/or final energy for a future year. Increasing number of targets aim for 2020, and there is now an EU-wide target of 20% of final energy by 2020, and a Chinese target of 15% of primary energy by the same year.
Global investment in renewable power and fuels increased 17% to a new record of $257 billion in the year 2011. Developing economies made up 35% of this total investment, compared to 65% for developed economies. The US closed in on China in the race to be the lead investor in Renewable Energy, with a 57% leap in its outlays to $51 billion. India however, displayed the fastest expansion rate for investment of any large renewables market in the world in 2011, with a 62% increase to $12 billion.
Again the whole world Invested $244 billion in 2012, however Geographic Shift to Developing Countries has happened. In general Installed capacity continues to grow as solar prices drop 30-40%, with a new wind installations surge
For only the second time since 2006, global investments in renewable energy in 2012 failed to top the year before, falling 12% mainly due to dramatically lower solar prices and weakened policy support in US and EU markets.
However, a dramatic change happened from past years, when developing countries increased their investments in renewable energy and closed a large part of the gap between them and developed countries to just 18% in 2012. Developed economies used to invest 2.5 times more in renewables (excluding large hydro) than developing countries in the last decade.
One of the dominant features of the Renewable Energy landscape in 2012 was falling technology costs. Photovoltaic module prices fell by close to 50%, and onshore wind turbine prices by around 10%. These changes brought these two leading renewable power technologies closer to competitiveness with fossil-fuel alternatives such as coal and gas.
The other key feature was a weakening in policy support for Renewable Energy in many developed countries. This reflected austerity pressures, particularly in Europe, and legislative deadlock in the US Congress. Future investment is likely to coalesce in countries that can offer policies that command investor confidence, plus the need for extra generating capacity and strong renewable power resources.
Egypt has to study The case of Germany and China while revising its strategy for future dependance on renewable energy . Germany is the worlds top photovoltaics installer .The federal government has set a target of 66 GW of installed solar PV capacity by 2030, to reach a goal of 80% of electricity from renewable sources by 2050.
In july 7th 2013 , on a sunny sunday ,20.9% share of solar energy in the total electricity supply was a real record in Germany .This was a low-demand weekend day, but this doesn’t diminish this record . It’s more like a window into the weekday summer reality from the near future, when the installed solar capacity is projected to pass 50 GW.
Egypt’s 350 days of any given year is like this single Sunday in Germany.
The lesson here is that Solar power in Germany has been growing considerably due to the country’s feed-in tariffs for renewable energy which were introduced by the German Renewable Energy Act. Prices of PV systems have decreased more than 50% in 5 years since 2006 as a result of this policy.
This feed-in tariff is a very effective means of developing solar power. It is the same as a power purchase agreement, but is at a much higher rate. As the industry matures, it would be reduced and becomes the same as a power purchase agreement. A feed-in tariff allows investors a guaranteed return on investment – a transient requirement for development. A primary difference between a tax credit and a feed-in tariff is that the cost is born the year of installation with a tax credit, and is spread out over many years with a feed-in tariff. In both cases the incentive cost is distributed over all consumers. This means that the initial cost is very low for a feed-in tariff and very high for a tax credit. In both cases the learning curve reduces the cost of installation, but is not a large contribution to growth, as grid parity is still always reached.
China on the other hand is the world’s largest wind power market with an installed capacity of some 60 gigawatts. The huge annual installation volume will continue as the government has set a target of a capacity of 150 gigawatts to be installed by 2020. China involved world known suppliers , like Siemens , in their implementation to achieve that target. These investments could not have happened without government sustained commitment.
It seems to me that the main parameter governing wind power economics out of many is still the wind turbine original cost and electricity production. Again any successful strategy to expand that type of renewable energy supply has to deal with incentives to investors, as a public long term investment in the future of any country, a paradox that needs innovative solutions in poor countries that cannot afford adding more pressure upon people.
As electricity production is highly dependent on wind conditions, choosing the right site is critical to achieving economic viability and here comes the opportunity of Egypt , with availability of wind sources in many areas.
The Red Sea Coast of Egypt includes highly efficient windmills , and these can supply increasing amounts of renewable wind energy to the grid.This region is known as one of the leading areas for wind energy generation in the world.
Green building is also growing across the globe. In a study done by McGraw-Hill Construction Twenty eight percent of architects, engineers, contractors, building owners and building consultants around the world report that they are focusing their work on sustainable design and construction by doing at least 60% of their projects green, doubling from only 13% of them at this level in 2009.
Looking forward, continued growth is also reported, nearly doubling again
to 51% of firms reporting that they expect to be at high levels of green activity in just three years.
This is not a trend localized to one part of the world or to developed countries. From 2012 to 2015, the number of firms anticipating that more than 60% of their work will be green is growing..
Global and local dialogue would help everyone rebalance the built environment with every country natural environment. By sharing new ideas and examining the latest data, building professionals can make more informed decisions about the future of buildings. the World Green Building Trends SmartMarket Report confirms that the green building movement has shifted from “push” to “pull”—with markets increasingly demanding no less than green buildings.
Situation in Egypt
Egypt is the largest oil producer in Africa that is not a member of the Organization of the Petroleum Exporting Countries (OPEC), and the second largest natural gas producer on the continent, following Algeria.
Egypt plays a vital role in international energy markets through the operation of the Suez Canal and Suez-Mediterranean (SUMED) Pipeline. The Suez Canal is an important transit route for oil and liquefied natural gas (LNG) shipments traveling northbound from the Persian Gulf to Europe and North America and southbound shipments from North Africa and countries along the Mediterranean Sea to Asia. The SUMED Pipeline is the only alternative route nearby to transport crude oil from the Red Sea to the Mediterranean if ships were unable to navigate through the Canal. Fees collected from operation of these two transit points are significant sources of revenue for the Egyptian government.
In Africa, Egypt has the third largest population, after Nigeria and Ethiopia, and the second highest gross domestic production (GDP), in purchasing power parity at current international prices, it comes after South Africa. (World Bank 2011). The International Monetary Fund (IMF) indicates that after the Egyptian revolution in 2011 the country experienced capital outflows and a sharp drop in tourism revenue and foreign direct investment. Annual GDP growth in Egypt dropped to 1.8 percent in 2011 from 5.1 percent in 2010 and 7.4 % in 2008.
Despite this slower growth, oil and gas production and operations largely have been unaffected, although some foreign companies have withdrawn nonessential foreign staff as a precautionary measure because of uncertainty in the country. In addition, shipments of oil and LNG through the Suez Canal have been unaffected, as the Egyptian army continues to guard the Canal.
Total primary energy consumption
Almost all of Egypt’s energy consumption in 2010 was met by oil (41 percent) and natural gas (46 percent), with the remainder from renewable energy sources (traditional biomass, hydro, wind, and solar) and coal. Oil’s share of the energy consumption mix is mostly used in the transportation sector, but with the increased use of compressed natural gas (CNG) in vehicles, the share of natural gas in the transportation sector is likely to grow.
Egypt’s total primary energy consumption grew by an annual average of 5 percent from 2000 to 2010, most of which was oil and natural gas. Egypt is the largest oil and natural gas consumer in Africa, accounting for almost a quarter of total oil consumption in the continent in 2012 and almost half of total dry natural gas consumption in 2011. The rapid growth of oil and gas consumption has been driven by increased industrial output, economic growth, energy-intensive gas and oil extraction projects, population growth, and an increase in private and commercial vehicle sales.
It is important to know that Fuel subsidies have contributed to oil consumption growth. Oil producers in Egypt are required to sell their crude oil to the Egyptian General Petroleum Corporation (EGPC) at a price below the world market price, and EGPC then sells the crude to its refineries on the global market. Because Egypt’s diesel consumption is twice the level of gasoline consumption, the country imports diesel to satisfy local demand.
Egyptian government sells diesel locally at retail for almost one forth of its import price.
Electricity consumption
The Egyptian household electrification rate in 2009 was approximately 99.6 percent. The country has one of the highest electrification rates in Africa. Egypt’s total electricity net generation was around 138.7 billion KWh in 2010 ,90%of which was from fossil-fueled electric, around 9% from hydro, and 1% from wind. Electricity consumption has grown by an average of 7 percent annually between 2000 and 2010. Most of Egypt’s power demand growth comes from the industrial sector. Any plan for the future should include renovation of aging infrastructure and new diversified growth and expansion of the supply.
Simply Egyptian electricity consumption is increasing much faster than capacity expansions, and the government should invest heavily in the power sector over the next decade, while also seeking financing from external sources. Egypt’s plans set in 2007 was to increase the amount of power generated from renewable sources to 20% of consumption by the year 2020 , particularly wind and solar, and is fostering nuclear power development at the same time.
Historically ,Egypt’s search for alternative sources of power supply and energy started long time ago. This never stopped to be part of the political seen in the country . It seems to me that the water supply and energy production will make the focus of the political seen in the near future of Egypt again and again.
Construction of the High Asawn Dam south of Egypt became a key objective of the Egyptian Government following the Egyptian Revolution of 1952, as the ability to control floods, provide water for irrigation, and generate hydroelectricity were seen as pivotal to Egypt’s industrialization. The High Dam was constructed between 1960 and 1970, and has had a significant impact on the economy and culture of Egypt. Building the Dam was the
core of conflict between Egypt , and west, particularly the US and UK and was in my opinion the major driving force behind a political detour of Egypt to go to the socialist side of the equation under the control of Soviet Union at the time, which supported building the High Aswan Dam in replacement of the conditioned loan of west.
Before ,this date, Egypt and the British began construction of the first dam across the Nile in 1898. Construction lasted until 1902, and the dam was opened on 10 December 1902 with capacity to control water supply and generate power.
When the High Dam powers twelve generators first reached peak output it produced around half of Egypt’s entire electricity production and allowed most Egyptian villages to use electricity for the first time. The High Dam has also improved the efficiency and the extension of the Old Aswan Hydropower stations by regulating upstream flows. According to Egypt’s New and Renewable Energy Authority (NREA), hydropower is Egypt’s third largest energy source after natural gas and oil. However, much of the Nile’s hydropower potential has already been exploited as it represents now only less than 10% of the needed consumption of the country. As already 85 per cent of Egypt’s hydropower potential has been developed, this is not regarded as a premier growth sector and the Government’s focus has been directed more towards the wind and solar energy sectors.
Solar
Due to its genius location, topography and climate, Egypt has an average level of solar radiation of between 2,000 to 3,200kWh per square meter a year, almost double to triple levels in Europe , giving it significant potential for utilizing . To date, however, uptake of solar projects has been slow due to high capital costs. By 2010, Egypt’s first solar-thermal power plant , located in Kuraymat, just south of Cairo has the capacity to generate 140 megawatt (MW) of solar-thermal energy. The plant was connected to the national grid in June 2011, (according to the National Renewable Energy Laboratory (NREL). The plant uses concentrated solar power (CSP) with back-up natural gas-fired generators. It is one of the largest Concentrated Solar Power (CSP) facilities in the world. The World Bank and the Japan International Cooperation Agency helped to finance the construction of this solar-thermal plant.) all foot note
Egypt is recognized as having vast potential for solar energy application, but the investment cost of solar power plants is currently very high in comparison with oil and gas fired power plants .
Wind
Some of the world’s best wind power resources are located in Egypt, especially in the areas of the Gulf of Suez and West and East Nile Valley. In 2010, Egypt generated 1.5 billion KWh of power from wind, mainly from the Zafarana and Hurghada wind farms which is Egypt’s largest non-hydro renewable project in the country by now.The farm houses a number of wind projects that were developed in several stages and financed in cooperation with development banks from Germany, Denmark, Spain, and Japan. The government plans to expand wind capacity over the coming years as part of a plan to increase wind’s share of electricity generation to 12 percent was in process, which needs to be revisited as the capacity and potential is higher than that.
Actually Egypt should explore creative economic arrangements with the EU on “solar swaps” and “solar offsets,” which would allow Egypt to ramp up its renewable energy industry.
A study on the Trans- Mediterranean Interconnection has shown the feasibility of valuable and powerful solar energy resources in the Middle East and North Africa (MENA) region
for export to Europe by means of a combination of the conventional Alternate Current (AC) grid and High Voltage Direct Current (HVDC) power transmission.
The site at El Kharga in Egypt represents the best energy yield (85-100%) in the MENA region. EU countries such as Germany who currently subsidizing solar energy production at high cost, and cannot sustain the subsidy plans for long , would and expected to look for alternatives. Egypt could develop solar power at a lower cost than in Germany and northern Europe and should explore the possibility of “solar swaps” where solar energy produced and consumed in Egypt could be offset by exports of other energy sources .
These creative arrangements could allow Egypt to ramp up its wind and solar production in a major transformation of its economy.
Sustainability and Environmental soundness
The other side of the coin is the fact that Sustainability and environmental soundness should no longer seen as an economic burden. It is now increasingly understood that pollution represents wasted resources and inefficiency. Lower energy consumption can be an important driver of savings. Furthermore, sustainability is increasingly being linked to innovation. I believe Industries tied to the Green Transformation will generate economic growth and new types of jobs in Egypt.
Meanwhile, specific industries such as tourism, agriculture, manufacturing, construction, logistics and others can improve their productivity and product quality.At the same time as i will explain later ,the GreenTransformation will obviously reduce Egypt’s vulnerability to future energy price shocks and expand Egypt’s energy independence.
Taking the path towards a low-carbon society, the Green Transformation would be Egypt’s unique contribution to mitigating climate change, a threat to which Egypt is especially vulnerable. Egypt can become more competitive and play a leadership role in the global effort if it is seen taking serious confrontational actions facing this challenge at home.
Furthermore, as Egypt suffers from air and water pollution, water quality waste management problems and land degradation ,If no actions are taken to reverse nations natural wealth, pressure on Egypt’s natural resources will increase. In the task of improving the welfare of Egyptians, we should not allow over-exploitation of natural resources to increase the burden and affect the quality of life ,we would like to improve ,of all segments of society, especially the poor.
In the efforts to create one Million new jobs per year in Egypt , to accommodate new comers in the work market, which needs new major investments, renewable energy projects could provide some of these jobs both for private sector and the local community.Through improving living standard and reduction of unemployment, the Green Transformation can be a major part of improving the overall well-being of the Egyptian people and is thus an important factor in ensuring Egypt’s political and social stability.
Countries with a strong environmental regulatory regime are also those that rank highest on the GCI. International experience has proven that stronger and well-crafted environmental regulations reduce costs for business, create green markets, diminish business risk, drive innovation, increase confidence and create competitive markets and jobs.
However Investments in alternative energy sources do not come to fruition overnight. To avoid energy shocks, planning must begin today. The Green Transformation can provide a long-term and definitive solution to Egypt’s energy dependency. Renewable energy can be the fastest growing energy source in Egypt, and by 2030, it can account for 30% of Egypt’s total energy needs.
As prices of non-renewable energy sources increase and as technological breakthroughs bring the costs of renewable energy down, one can now perceive a future where self- sufficiency in renewable energy is more than a possibility in Egypt . Energy security is equated with national security, which will be based on the ability to fill the gap that will grow between the demand for energy and the supply of hydrocarbons.
The Government of Egypt and Egyptian business leaders should try harder, with evidence based efforts to convince the global energy industry that Egypt is an ideal location for these industries to be developed and for solar and wind energy to be rolled out.
if Egypt adopts the right policies and incentives, Egypt can reduce the growth of its GHG emissions 36% which is a very significant reduction compared to current levels, (reference).The abatement potential is large, although somewhat smaller than the potential of other countries at a similar level of development because Egypt relies heavily on natural gas for electricity production.
The Cost of Environmental Degradation (COED) in Egypt was quantified and found to be high and not only affecting the Egyptian economy, but also reducing tremendously the current welfare of Egyptian society.
Egypt’s poor environmental performance not only exposes its citizens to severe risks, it also diminishes the competitiveness of Egypt’s economy. This means that Egypt will not be able to strike a path of sustainable development without overcoming it’s public health problem, in part with a new approach to the environment.
Egyptian people welfare is not only related to growth of economy. Theoretically speaking, if Egypt’s can sustain economic growth of 7.4 % , or more (levels achieved 2007 and 2008) for 10 years , the country can only expect families to double their incomes in more than a decade. This cannot improve their lives. It is the level of Education, Health, availability of decent Public transportation, safe clean water supply , clean environment together with direct Financial support to poor families in the way to bring them out of poverty which together with other factors , can make them feel better, and ensure increasing their capacity to spend, save , and enjoy life .
More rational approaches to housing, transportation and urban development will lead to shorter commuting times, more pleasant transportation experiences and less stress. It will also lead to higher productivity and enjoyment of life as these benefits of a cleaner and quicker commute become benefits experienced by all people . A clean city and village with clean water will provide a major boost to the quality of life of Egyptians in the future, as the Green Transformation becomes a reality.
Tourism is increasingly important to Egypt’s economy, and environmental conservation will be increasingly important to its success. Tourism revenues contributed to almost 6% of the GDP and made up 18% of Egypt’s external revenues in the fiscal years 2000 to 2011, on average. (Update )The tourism industry should make a serious commitment to develop ecotourism. Conservation and education efforts were already underway to protect valuable coastal reefs, the white sands and historical and cultural assets. It would be tragic if
climatic disasters and environmental degradation take a toll on this promising industry, which has the potential opportunity for ecotourism as well as direct involvement of the private sector.
GREEN TRANSFORMATION NEEDS STRONG POLICY SUPPORT:
It is imperative that Egypt should change general attitude towards the environment. Egypt must deal seriously with these challenges and enforce environmental regulations strictly and without hesitation. Environmental work is not a luxury but a necessity to protect Egypt’s natural resources for the generations to come.
On March 26, 2007, the Egyptian Constitution was amended to include a new article, Article 59, which states that “Environment preservation is a national duty,” and that “the Law shall regulate measures needed to maintain sound environment.” Consistent with the changes in the Constitution, Egypt amended its environmental protection law in 2009, which created the High Council for the Protection of the Nile and other Water Ways. The Council is chaired by the Prime Minister and coordinates work for decreasing pollution in the Nile and other waterways.The law also places the Egyptian Environment Affairs Agency (EEAA) in charge of enforcement of pollution emissions and discharges of waste. It also imposes a prohibition on waste burning. It further requires environmental impact assessments. New environmental executive regulations were issued to be effective as of July 2010.
Unfortunately , with the political instability since 2011, priorities of this issue has been seriously compromised . This chapter and this book is a wake up call for government of Egypt and political leadership to reinstate their priorities.
Egypt has established also a National Committee for Sustainable Development, chaired by the Minister of State for Environmental Affairs and includes other sector ministries as well as representatives of the private sector and NGOs. One of the roles of the “National Committee for Sustainable Development is to coordinate between the sectoral strategies, plans and programs while integrating into them the environmental and social aspects.” The Committee prepared its National Framework for Sustainable Development,the objective of which is to increase economic growth while decreasing pressures on the environment and natural resources and ensuring social justice in resource distribution, education, services and social integration. The framework has provided a vision for Egypt’s sustainable development, consisting of 11 objectives defined by the sector ministries and institutions, and 16 guiding principles for developing the policies related to these objectives. Egypt is to make its national strategy for sustainable development seen and positively perceived by Egyptians as well as investors to ensure mainstreaming of Egypt’s potential competitiveness. I mean by getting into this kind of details to show that Egypt has the institutional structure for this strategy and is capable of taking it forwards.
It is true that Egyptian policy for sustainable development provided a framework for ambitious and comprehensive action but it will require inter-ministerial coordination. The
framework also calls for the reuse of agricultural waste and the use of new and renewable energy resources in irrigation, energy, electricity and agricultural sectors. This will require the explicit commitment of the entire government and a participatory approach for setting priorities and making choices.These choices will need to be informed by in-depth economic and financial studies. It is likely that the implementation of this ambitious program will require consensus-building and tradeoffs so as to harmonize economic growth and environmental objectives. It definitely needs strong committed government.
Green Technology Challenges:
The main drawback of Renewable Energy Source systems continues to be their current cost compared to conventional energy sources.
Government policy currently subsidizes the consumption of water and the use of non- renewable energy, and this works against the Green Transformation. The first step towards a Green Transformation should be correcting the disincentives that currently subsidize uneconomic and indiscriminate use of water and non-renewable energy.This will need to be phased in with due consideration, given the social as well as political implications of doing so. Studies have demonstrated, however, that subsidies for energy do not primarily benefit the poor, and the savings from phasing out these subsidies could free up resources for targeted subsidies that really do.
Egypt’s Achievements to Date on Green Transformation
I am sometimes amazed by the lack of knowledge of not only the public but also new politicians coming to the stage after january revolution 2011 and june revolution 2013. Institutions in Egypt has been working and producing visions , and strategies. Defaults were and is still the lack of political will , ability to face the challenges of implementation together with discontinuations of efforts due to ignorance or rejection of all what is coming from previous political regimes irrespective of its value to the nation.
I should here refer to valuable research carried out by Industrial Modernization Centre (IMC) between 2006 to 2009 showing that multiple sources of alternative energy are becoming increasingly viable in Egypt. The analysis stresses different support needs in terms of R&D, demonstration and market development for five types of renewable energy technology.These include large- and small-scale solar thermal, photovoltaic, wind and biomass energy.
Despite the constraints mentioned above, Egypt can establish policies to promote a low- carbon market. There have been significant worth mentioning steps taken at the policy and investment levels.At the policy level, the Egyptian Supreme Council of Energy approved the “Long-Term Plan for Wind Energy” and fixed a target to meet 20% of electricity needs with renewable energy, with 12% coming from wind energy by the year 2020. I believe Egypt should do better than that and expand its ambitions.
Egypt also established the New and Renewable Energy Authority (NREA) in 2007 (Verify date)and has been taking the lead in the establishment of the Regional Renewable Energy and Energy Efficiency Center, supported by EC, GTZ and DANIDA. (References to be added) .To promote investments, the Ministry of Electricity and Energy was planning 2010 to introduce a tax break and feed-in tariffs that will encourage development.
Over the last decade Government of Egypt has introduced natural gas in more than 95% of its power plants as a power source, as well as in the industrial, housing and transport
sectors. A successful incentive system was put in place for private taxis to switch to natural gas, and a fund for LE 300 million was established by the Ministry of Environment and Ministry of Finance as an incentive system for modernizing the taxi fleet in Cairo before 2011. This could have contributed to major improvement in air quality by the current time.
An eco-labeling program has been introduced in Egypt and covers refrigerators, air- conditioners and washing machines. Furthermore, Egypt has installed 225 MW of wind- energy capacity under power purchase agreements with the Egyptian ElectricityTransmission Company (EETC) and has projects for installing more. The wind power plants in Zaafarana was performing well until 2009 and had a capacity of over 40%, one of the highest in the world. By 2010, through foreign investments, 630 MW of wind capacity was installed in the same area, and a target of 3500 MW installed capacity has been set for 2025. There is long-term potential for technological excellence in the field of STE following the construction of the 150 MW solar-integrated Koreimat plant.
Egypt has a wealth of other demonstration projects for renewable energy technologies and a number of commercial applications on the market (some of which are manufactured locally), as well as a solid institutional basis and research initiatives.A number of established manufacturers produce domestic water heaters and photovoltaic modules.
A projected doubling of domestic electricity demand by 2030 and the plans for a sustained increase in gas exports should be the main drivers for the transition towards a more diverse and efficient energy system in the mid- and long-term. In turn, these should constitute the main drivers for the development of renewable energy technologies.
There are many examples of successful sustainable agriculture practices in Egypt and around the world. In other countries, agriculture is criticized more and more for its negative impact on human health, for environmental degradation and for the excessive usage
of scare natural resources (minerals, energy, water, arable land). Organic agriculture, on the other hand, has lower energy needs (30 – 50 %),lower water demands (30 – 50%)and very limited negative impacts on the environment and health, due to the absence of pesticides and chemical fertilizers.
In Egypt, the organic sector has experienced high growth in both domestic usage and export, yet, there is still a great potential for sustainable agriculture. More research and development and training are needed to increase the understanding of sustainable agricultural practices. Detailed studies are needed to assess the real costs aligned with conventional agriculture and to identify levers where shifts to more sustainable practices have positive, net present values. But such agricultural innovations would have positive implications. I mention here ,Lower water demands which can overcome the limited water availability , Healthy soils which can widen the arable land and sequester carbon dioxide
, Lower energy demand which can reduce pollution, lower carbon emissions and ease fiscal restraints for energy subsidies, Closed nutrient cycles, intercropping and complex ecosystems which can reduce the demand for limited natural resources.
ENVIRONMENTAL DAMAGE COSTS WITH PRICE REFORM AND SECTORAL MEASURES COMPARED
Costs of environmental degradation have been estimated for six categories, Indoor and outdoor air pollution, Lack of access to water supply and
sanitation services ,Land degradation ,Coastal zone degradation ,Waste management and Global environment.
Table 1 shows average annual costs of degradation by country and category. These results are underestimates: because of data limitations, they do not include damage stemming from untreated industrial, hazardous, and hospital wastes and biodiversity.
Research evidence from around the world shows that indoor and outdoor air pollution has significant negative effects on public health and results in premature deaths, chronic bronchitis, respiratory disorders, and even cancer. The most significant air pollutant in terms of health impacts is particulate matter, especially fine particulates (PM10), and the studies therefore looked at PM10 levels in major polluted cities in the region. In Cairo and Alexandria, Egypt, damage from urban air pollution is estimated to cost almost 2 percent of GDP. This figure includes mortality (it is estimated that each year about 20,000 people in these cities die from air pollution–related causes), morbidity, and potential loss of tourism revenue.
The use of biomass fuel for cooking and heating can give rise to indoor air pollution that threatens health, especially that of women and young children, who spend disproportionately more time indoors than do men. The studies analyzed biomass fuel use in rural areas to assess the potential health impact of indoor air pollution and found that, on average, damage cost from this source ranges between 0.15 and
0.45 percent of GDP (figure 2). This is relatively low compared with costs in Sub- Saharan Africa, South Asia, and the East Asia and Pacific region. A probable explanation is that in MNA the proportion of rural to total population is much lower than in the other regions, and energy services (e.g., electrical grids and natural gas networks) are more geographically dispersed, hence leading to less dependence on biomass.
Although overall Egypt is a relatively low emitter of GHGs, as i mentioned before, its GHG per unit of GDP is among the highest in the region. Egypt contributes only 0.5% of the world’s CO2 emissions. However, per unit of GDP, Egypt’s GHG emission level is among the highest in the region.The main reduction in such emissions would come from changes in the five key sectors (power, construction, cement, transport, and agriculture) that contribute about 75% per- cent of GHG emissions and could account for 80% of total CO2 abatement between now and 2030.
Technologies for reducing GHGs have been identified and the financing mechanisms may already exist for their implementation. A review of the technologies for reducing greenhouse emissions has been analyzed as part of the National Strategy Studies,where the objective was to develop options and opportunities presented by potential international markets for GHG emission reductions through the Clean Development Mechanism (CDM) of the Kyoto Protocol.
Burning of agricultural wastes and current energy supply policies result in costly pollution and environmental degradation, making policy initiatives economically justifiable. As mentioned elsewhere in this chapter, there are significant social and environmental impacts related to energy supply and the burning of agricultural residues. The average estimate of local damage costs due to air pollution from these two sources represents almost half of the damage costs from all environmental degradation which counts up to approximately 2% of GDP of Egypt .
Now, If I go to natural gas, I should mention that the environmental advantages from substituting natural gas for heavy fuel oil could outweigh the benefits of exporting natural gas. The mitigation costs are different from the degradation costs, as they depend on air quality standards and the choice of technology.The different methods to reduce degradation are: to switch to cleaner fuels, improve energy efficiency while reducing pollutants from the fuels and/or substituting fuels with renewable energy resources. These measures cannot be studied in isolation. Energy efficiency measures alone cannot substitute for the construction of new power stations. It must be noted that the economics of various low- carbon initiatives have attractive cost-benefit ratios, even at existing market prices.
A defined goal is also to reduce the ICT sector energy use and find a proper way to re- cycle the tons of hardware thrown away every year. The use of ICT and its raw materials account for 2 – 2.5% of global GHG emissions. In 2009, Nile University joined a Research Center cooperating with private firms to find solutions for power-efficient servers and eco- friendly innovations in the ICT field. Green IT does not only play an important role for its own sector, it can also significantly help other industries with green initiatives and innovations.
STRATEGIC FRAMEWORK FOR GREEN TRANSFORMATION IN EGYPT
Proposal and opportunity
In 2009/2010, The Egyptian National Competitive Council (ENCC), and the business community in Egypt has voiced its recommendations that Egypt should develop its sustainable development strategy since it has no alternative other than to adopt a low- carbon pathway alongside “green, clean and sustainable business.” The elements of the sustainable development strategy includes , Adopting policies to enhance the performance of sustainable markets ,Promoting business action ,Enhancing labor competitiveness
and Properly enforcing the labor laws.
Integrating the above elements into the egyptian national sustainable development strategy would have taken time and would have required substantial background studies, however this was not done as Egypt went into the turbulence following revolutions in 2011 against Mubarak , and again in 2013 against Morsi and Moslem brotherhood. However Egypt should still make the strategic move of developing its own green policy that would feed into the overall sustainable development strategy and be based on the green strategy framework .This part of the chapter indicates the need more than ever for an ambitious, multi-faceted and high-priority approach to achieving this Green Transformation of Egypt.
The vision for Egypt’s GreenTransformation is to have a modern, efficient, competitive, low-carbon, economy with expected economic, social and environmental benefits for the Egyptian people. Egyptians via this approach would be healthier and in the forefront of an exciting new industry based on renewable energy. Economic and social life would be more productive and more pleasant.
In order to contribute to the achievement of this vision, the goals of the strategy framework should develop and disseminate technologies that encourage the efficient and sustainable use of Egypt’s natural resources .it should Promote a transition to low-carbon development in specific sectors through policy and institutional reforms, with improved choice of fuel, equipment and production technology, Provide a business platform and forge alliances with international and local investors and banking institutions . Raising awareness about natural resource conservation, use efficiency and climate change vulnerability through informational and educational campaigns among the general public should be integral part of this strategy.
In Making the Case for Change , Egypt’s new political leaders must articulate the compelling case for moving quickly to position Egypt as a leader in the Green Transformation. Just as those who were in the vanguard of the Industrial Revolution and the Information Revolution benefited greatly, so too can Egypt benefit from this potential change..There will be new types of job creation and new economic growth opportunities in industries affiliated with this transition. By taking effective measures today, Egypt can ensure that it has the right financial and technological partners for renewable energy to take place tomorrow. This approach if properly planned is a “win-win” situation encouraging innovation and modernization in industry, foster investment and attract FDI.
A clear vision and strategy for the Green Transformation of Egypt is my task in this part of the book. This strategy puts responsibilities upon the shoulders of the national government, the private and business sector and civil society.The new government should set the course towards the Green Transformation with the following steps:
- Make a clear and comprehensive policy statement and back it with financial commitments.
- Realign the existing regulatory and institutional framework.
- Design an incentive system for green investments . d.Establish a task force on green transformation and
a “one-stop” office for green investment promotion.
e.Promote education on green opportunities, technologies and sustainable growth.
- Raise public awareness of green technologies.
g.Establish a benefit tracking system to evaluate implementation.
A policy statement backed with concrete financial commitments should be announced. A good start to trigger the transformation into a Green Economy would be to finance high- profile demonstrations of green technologies specifically relevant to Egypt.This would show that Egypt is a favorable location for installation of new manufacturing plants for key technologies and would attract more national and international investors.
Realigning the existing regulatory framework is mandatory. A working group from the Ministry of Investment and Ministry of State for Environmental Affairs should be established to realign the existing investment and environmental legal framework.The
purpose would be to provide incentives for the adoption and production of green technology; to revise business and environment practices; and to facilitate the disclosure and dissemination of environmental and business information to attract markets. The retrofitting of existing sector policies and strategies with Green Transformation measures must be (1) realistically achievable in the Egyptian context, (2) affordable, (3) able to create jobs and (d) able to generate direct and indirect revenues. One example would be to revise standards and guidelines for air and water pollution based on pollution loads and on economic and environmental impacts.
Establishing a task force on Green Transformation and a “one-stop” office for green investment promotion would facilitate implementation. The Prime Minister’s office should establish a high-level task force on Green Transformation, composed of business and banking community leaders, with sector ministers acting as facilitators.This think tank could be part of an existing non-government business council, such as the Egyptian National Competitive Council or others .The mandate of this task force would be to pursue the development of the green strategy, promote international partnerships with selected developed and developing institutions and catalyze action on the green transformation initiatives to be identified. A “one stop office” can provide comprehensive information and guidance on market opportunities, investment opportunities and applications for each industry.
Designing and implementing an incentive system for green investments is a must. The main goal is to create favorable financial conditions for the banking and private sectors to finance green investments. The Ministry of Finance, in collaboration with the Federation of Egyptian Industries, should design and implement an incentive system for the deployment and manufacturing of green technologies, products and processes. Such an incentive system should be based on performance, such as achieving specific targets and on time- bound compensation for the incremental costs incurred for adopting and scaling up the green transformation measures. One example would be to implement a system for issuing environmental permits that incorporates an estimate of GHG emissions and alternatives for green technologies based the environmental impact assessment/environment audit studies.
Priority should lie on a few “champion” sectors that are ready to move concurrently on catalyzing policy reform and leveraging private and public capital.The main criteria for the selection of sectors should be : (1) where the results would be easiest to achieve; (2) where there are financially feasible projects already available for attracting private capital; and where there can be partnerships and cost-sharing mechanisms between private and public capital, with the possible support of international financing institutions and donors.
Another option would be to establish a transparent system of subsidies/financial support for capital costs for green technologies, as well as for capital depreciations and amortization on a life-cycle basis.
A serious efforts from central government and local governerate to Promote education on green opportunities, technologies and sustainable growth through knowledge sharing partnerships and joint research programs with leading international engineering schools and research and development institutes. The Ministry of Higher Education and Scientific Research should pool funds from existing national and international grant resources to support technology development and innovation in green technologies and investments. Furthermore, the Ministry should create a national public education/awareness program in support of the policy/program objectives of Green
Government should Establish a benefit tracking system whereby key performance indicators on investment opportunities and environmental benefits can be measured and reported to the public by an independent third party.The indicators to track the progress of Green Transformation or Climate Competitiveness in Egypt are presented in the Climate Competitiveness Index:
The major elements of the strategic frame- work should involve energy, transportation, buildings, agriculture, industry and environmental conservation.This holistic framework would take a broad view of Green Transformation as something beyond just the transition from non-renewable to renewable energy. It should involve all sectors of society and has many far-reaching benefits.
New Government policy should and can support new and renewable energy development in a variety of ways beyond the initiatives currently underway to commission wind and solar power for the electricity grid. First, the government can support R&D targeted at these renewable technologies by creating incentive formulae to Universities and research centers. Second, it can develop a new financial and regulatory framework that can enable wind technology to reach the break-even point when compared to conventional electricity sources over the short term, while also mobilizing local manufacturers. Third, by improvement of regulations and incentive systems it would help to increase the demand for solar water heating, supported by local manufacturers. Fourth, a focus on biomass technology would stimulate and attract both financial and technical assistance.
Industrial pollution should be reduced dramatically if variety of initiatives take place . As energy costs made to reflect market realities, the overall portfolio of industrial and manufacturing output naturally will shift to less energy-intensive industries and modes of production. Egyptian industrial output would be shifted to a higher proportion of employment-generating, light manufacturing industries and a lesser proportion of heavy industry. This will help to create more jobs per unit of investment.
Egypt’s privet sector industries and exports have the capacity, and understanding and are known to comply fully with international standards on environment, worker safety, health and overall quality, and this image will help them to compete in global markets. New standards of industrial pollution control has been prepared between years of 2007 to 2009. Highly polluting heavy industries are being rehabilitated to more environmentally- friendly and less energy-intensive technology by the Egypt Pollution Abatement Project (EPAP II), which is being co- financed internationally by many organizations. Reference: (the European Investment Bank, the Japanese International Cooperation Agency, the World Bank, the European Commission, the Agence Francaise de Développement (AfD) and the National Bank of Egypt for a total amount of USD 190 million. This is in addition to the Private Public Sector Industry grant of EURO 7.3 million from the Construction Bank KfW.)
However , we should know that these initiatives has to be guided , pushed and pulled by the government to a target direction. Public investment is essential , but we recognize that without the involvement of the local privet sector and direct forign investments, it would be difficult to realize this vision.
The spread of the use of renewables may help stimulate economic growth also by improving rural electrification and continuing the modernization of the electrical network , Fostering R&D and Increasing exports. The operation, management, and maintenance of a renewable installations can create sustainable, local jobs for periods of 20 years or more. This can help spur education and the drive for better skills, particularly in remote areas.
To maximize the regional benefit of renewable energy, grids should be transnational and markets should be fully open to entry to private investors, a job that should be seen and carried out by Egypt’s Government using privet sector capabilities.
To meet the massive need for renewables investment in Egypt , an appropriate policy environment will have to be constructed to encourage private investment including enhanced private-public dialogue ,long-term partnership between foreign investors and the public sector for mutual benefit and a favorable regulatory environment, thus creating a
„win-win‟ situation for investors and policy makers. This should lead to an increase in core- competencies and industries in Egypt and enhanced economic growth prospects.
The General Conditions Needed to Promote Private Investment are needed to be established includes: a-Policies to facilitate investment in the renewable energy sector in Egypt that would benefit from being made part of the announced national economic development goals. b-Egypt should ensure the enactment and enforcement of the rule of law. Systems should also promote individual business and property rights and freedom of entry and exit
c- Announced Policies need to be long term from a business perspective, thus providing stability and predictability for private investors .d-As Public Privet Partnerships are crucial for the promotion of energy investment, Egypt should show the rules of that and protect this partnership by legislation. e-Burdensome administration should be reduced competition law needs to be in place and properly enforced. The existing competitive environment needs to be overhauled with a view to creating a level playing field for all steak holders.
As per Trade policy, I would urge the Egyptian Government to make sure that market should have few barriers to entry and Any barriers should be defined and dealt with by an enterprise‟s competitive and/or financial capabilities
Other elements of the regulatory framework to be considered are a- the
need to put in place national environmental policies, derived from international and regional conventions, agreements and commitments. b-Egypt’s National regulations should outline specific national and local environmental concerns. c-Specific environmental targets and objectives should be specified. d-An independent environment watchdog should be created. d-New environmental policies should aim to maximize energy efficiency .
Private Sector again and again:
The reason I go back to the privet sector, is to remind the new government of Egypt that populist policies that attack privet sector that in most of revolutions, should be avoided in Egypt. The Government cannot do it alone, and profit incentive should be respected and promoted. This does not conflict with social justice, it actually enforces it so long as the rule of law and transparency, prevail.
The Climate Competitive Index has found evidence for the importance of the private sector within the Green Transformation process and emphasizes the need to enhance private investment. This directive is supported by empirical findings showing that many northern European countries owe their strong performance on the CCI to the role of firms in reducing emissions and in producing products and services with lower carbon emissions. The following strategic elements are proposed for catalyzing the market for green investments by the private sector:
- to Identify green investments that would generate profits and benefit the environment, such as sustainable raw materials, eco-friendly packaging, clean energies, and products less dependent on water supply. Investments should take advantage of private sector innovation and efficiency, and should generally rely on market mechanisms and price instruments, rather than command and control by the Government.
- To Partner with leading manufacturers that already have the technology and want to expand in the local and regional market and/or become a supplier of equipment and services for candidate technologies.
- To Take advantage of existing financial mechanisms for shifting to low-carbon growth opportunities, such as the Global Environment Facility (GEF), the Clean Development Mechanism and the newly established Climate Investment Funds (CIF). Worth noting that The CIF, for which over USD 6 billion was pledged, was established by the World Bank in July 2008 and is implemented jointly by the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, International Finance Corporation and the World Bank. It consists of the CleanTechnology Fund and the Strategic Climate Fund and is considered an interim instrument. The Clean Technology Fund would contribute to demonstration, deployment and transfer of low-carbon technologies with a significant potential for long-term GHG emissions savings. In December 2009, the CTF approved the allocation of USD 750 million, which will mobilize an additional USD 4.85 billion from other sources to accelerate the deployment of Concentrated Solar Power (CSP) in five countries: Algeria, Egypt, Jordan, Morocco and Tunisia.
Being the provider of capital, the banking sector is an important engine of green investment and innovation. Their impact should be via :
- Examining the economic and business opportunities to supply alternative energy technologies and services in Egypt and in other countries in the region
- Making appropriate recommendations for establishing an incentive system that provides a sufficient rate of return on costly green investments.
- Seeking a basket of funds from donors and international financing institutions on the lower end of the market rate.
- Designing new financial architecture through leveraging with carbon investment finds, CDM and GEF to lower the cost of funds to sub-national entities and especially to small and medium enterprises (SMEs).
- Providing financing for green investment projects and arrange for guarantees and credit risks to be born partially by the Government.
General consumption of non-renewable energy should no longer be subsidized in the long-term (except for the poor segment of the population) leading to better stewardship of
depleting hydro- carbon resources and rational use of energy. This will free up government budgets to be able to pro- vide more targeted assistance to the poor. Instead of subsidizing the more intense use of electricity and fuel by high-income people, the Government of Egypt should provide effective income support to those who need assistance. Public transport, however, as in most countries, will continue to be subsidized, making the commute of the average worker affordable.
Egypt’s transportation strategy is an important element of its Green Transformation. Improvements in conventional internal combustion engines, hybrid engines and electric- powered cars will be a key part of the transition in transportation. Use of compressed natural gas (CNG) and biodiesel as fuels, along with transportation planning are important elements of this strategy. Efficient, cost-effective and environmentally friendly mass transit systems will similarly be important components. If implemented correctly, this can also reduce commuting times as well as reducing wasted fuel due to over-congestion on the roads.
Green transportation initiatives will enable Cairo to become a much more livable city. There will be notably less pollution. People will spend far less time commuting than they did in 2010.Timely investments in a mass transit system will provide for a quicker, more efficient and more pleasant commute. Cairo’s mass transit system will include both below- ground and above-ground systems.These include north-south and east-west corridors as well as a diagonal and ring-road mass transit design. High numbers of passengers will move quickly and in relative comfort.The taxi fleet in Cairo, much of which has already made the transition to natural gas, could adopt hybrid engine systems. Buses and trucks could also convert to clean energy.The introduction of hybrid and efficient electric-powered cars for personal use, supported by financial incentives, can also contribute to a noticeable improvement in air quality.A series of fast river taxis will provide alternative transportation up and down Cairo.
When my family moved from ElMansoura , north of Egypt to Cairo to follow new job career of my father in 1960, I was almost 8 years old. I joined a public school! And over my years in school education, I used to use a bicycle in most of my transportation. Actually it was always a puzzle for me why Egyptians are not using bicycles in their town transportation. Weather is appropriate most the time , and more than 60% of the population are youth.
Changing behavior of a society needs vision and leadership, incentives, and safe enviroment for that change. Governors of cities, should and can be able to do mericles with public campaigns to use bicycles, stop smoking in public places, collecting garbage, cleaning their cities and so many other initiatives for a better life standard with minimal cost.
Energy efficient design of buildings, greater use of insulation materials, solar water heaters, retrofitting of energy systems, low-energy lighting systems and energy-efficient appliances can combine to create sustainable increases in living standards consistent with low-energy and carbon-intensive approaches. City and urban planning, including zoning laws, should stress high-density and low-carbon living.
Middle income housing in Cairo and throughout Egypt needs to undergo a major transformation through major policy changes. New long-term mortgage instruments are needed to enable people to both purchase and renovate their houses and flats.A gradual phasing out of rent-control (while protecting the rights of pensioners and the poor) could result in incentives for refurbishment, improved maintenance of existing properties and construction of new properties.This in turn will create an expansion in the construction industry and create more jobs, while simultaneously improving the living space of people.Trash collection, recycling and disposal systems should be improved to become more efficient. Energy-smart construction materials and architectural designs will lower the need for seasonal heating and cooling. Solar water heating, supplemented by some natural gas water heating, can replace inefficient electrical water heaters in most homes and apartments.
Reduction in the burning of agricultural waste, use of agricultural waste for composting and the production of renewable energy, biofuels and biodiesel will be important policy initiatives. Reducing agricultural waste burning will also have positive health consequences. Its impacts will even extend to improving the competitiveness of Egypt’s tourism industry by improving the air quality during different seasons.
In agriculture, measures should be taken to prevent the salinization of water and to improve the stewardship and conservation of water resources.Water should be priced to promote the conservation and efficient use of water in ways that most stimulate economic growth and improve the quality of life. Processing and reuse of wastewater can be used to grow non-consumable crops.Agriculture can also provide important sources of biodiesel, including biomass and Jatropha, a highly efficient source of biodiesel.
Conservation of coastal and river resources will also play a role in the Green Transformation as well as the intelligent conservation of all of Egypt’s cultural, historic and natural resource assets.
The Red Sea Coast of Egypt can become even more alive with high-tech and highly efficient wind- mills, which are supplying renewable wind energy to a number of new housing, tourism and industrial projects up and down the coast.
The tourism industry should make a serious commitment to develop a reputation for sustainable and green tourism, and serious conservation and education efforts will protect valuable coastal reefs as well as historical and cultural assets.
As mentioned above, information and communications technology industry (ICT) can do much more to reduce its own carbon emissions and to re- cycle tons of computer equipment. In addition, the ICT industry will contribute much to Green Transformation in every field. From household energy monitoring controls to onboard vehicle navigation systems that alert people to traffic jams and recommend al- ternate routes, to smart technologies of every kind, the ICT industry will help drive the Green Transformation and will grow and benefit as a result. Green ICT not only helps other industries to come up with green innovations, it also aims to reduce emissions by lowering the energy consumption of servers and PCs, improving recycling methods and finding appropriate ways to store old hardware material.
The strategies mentioned above are not an exhaustive list.There will certainly be other areas not yet mentioned.There may well be a Green Transformation element to the
strategies of each service industry, including hotels, retailing, finance, personal services and business services.
The findings of the published Climate Competitiveness Index 2010 suggest that there has been a global trend towards climate accountability, since the Copenhagen Conference of December 2009. Climate accountability is defined as the degree to which a country has the leadership, institutions, systems and practices in place to deliver climate competitiveness. The growing awareness of the protection of the world’s climate is a strong indicator that countries showing a poor climate performance will neither be recognized, nor be competitive in the globalized world of the future. Regrettably, the MENA region today takes up the last position on the index, so a quicker and more forceful reaction is necessary.
Egyptian leaders have a major role to play in building public awareness regarding Egypt’s responsibility to play a leadership role in confronting climate change. The Climate Competitive Index 2010 already predicts that climate politics will become a vote-winner for governments and parliaments in the near future .These politics will soon be imperative for political survival in the west , and later on in developing countries. . According to estimations from the report, proactive adaption policies are especially essential for those countries most vulnerable to climate change.
Egypt can learn from and adapt policy instruments and incentives that are being used effectively in other countries. To catalyze the market and to support their energy policies, many countries have established a diverse set of tools. Some provide capital subsidies. Others provide feed-in tariffs. Investment tax credits may be made available that provide for tax deductions or accelerated depreciation. Production tax credits, based on the amount of electricity generated by renewable energy have also been made available. In some countries, public investment loans or financing from the state budget are used. No single country has established all of these renewable energy promotion policies, as they require substantial financial, economic and technical studies. Many of these instruments such as feed-in tariffs are however, being successfully applied in other developing countries.
Education & Research Institutions –
There is a role for Egypt’s universities, think-tanks, research institutes, business associations, chambers of commerce, media and other civil society organizations in helping achieve the Green Transformation.
Universities and centers are needed to train the engineers and technical experts who will be in demand as soon as investment begins to grow in green technology.These institutions will need to conduct research to help bring technologies up to date.
People will need to be educated to conserve conventional energy, to use green technologies instead of wasteful ones and to deal with waste rationally.This is a task for the media, schools, universities and employers companies and firms that will need to train their workforce accordingly.
NGOs – Business associations, chambers of commerce and organizations can help to raise awareness, facilitate public-private dialogue and monitor progress. NGOs have a role to play generating new ideas, monitoring progress and helping to change mindsets.
Because non-profit organizations are seen as operating for the public good, NGOs should play a critical role in communicating to the nation the importance of this transformation.
Finally, We should not undermine the fact that the path for Green Transformation refers too to a change in mindsets, attitudes, values and principles that create the conditions for sustainable development. That is a part of the strategy that needs conviction ,political will, and sociopolitical leadership. By this strategy, central and local governments and businesses proactively make the transition to a future characterized by resource efficiency, new and renewable energy and healthy environmental practices. More value should be placed on the quality of life and on human prosperity.
In a not shell The Green Transformation is relevant to every Egyptian industry and to every Egyptian individual .It applies to manufacturing and mining, to information technology, to construction ,agriculture ,tourism and even retail. It refers to policies that lead to careful stewardship of water and energy, as well as savings from more efficient practices that can be channeled into social services and other welfare enhancements.
As i mentioned , Egypt has considerable comparative advantages in both wind and solar power. Smart policies to encourage the transition to these sources, even in advance of the immediate price signals coming from global markets, can help to ease this transition and position Egyptian firms as players in this future global direction.
Green transformation is a real tangible initiative for the future of Egypt and amazing opportunity for investors.
