Egypt Targets Greener Industrial Growth

Egypt is stepping up efforts to decarbonise its industrial sector, with renewable energy, resource efficiency and private-sector investment emerging as key priorities in its cooperation with the European Bank for Reconstruction and Development (EBRD).

The country’s Minister of Industry, Khaled Hashem, held talks with EBRD Vice President for Policy and Partnerships Mark Bowman and Managing Director for the Corporate Sector Jacqui Powell on expanding cooperation across green industry, renewable energy, water efficiency and SME development.

A central focus is increasing the use of renewable power in Egyptian factories. The government aims to raise renewables’ share of the national energy mix to 45% by 2028, while encouraging industrial companies to reduce their dependence on conventional energy sources.

Egypt is pursuing this through initiatives including Shams El-Senaa, which supports the installation of solar plants at industrial facilities, and the Solar Energy Transition in the Industrial Sector (SETI) programme, implemented with the United Nations Development Programme. SETI targets solar deployment at state-owned industrial facilities alongside measures to improve energy efficiency.

The EBRD is also supporting low-carbon industrial investment, including projects involving emerging technologies. Egypt is among seven countries selected to receive up to $288.87 million in concessional financing through the Climate Investment Funds, aimed at closing financing gaps and mobilising private capital for climate-related projects.

Beyond energy, water efficiency is becoming another pillar of Egypt’s industrial transition. The ministry is promoting closed-loop water systems and greater deployment of industrial water-treatment technologies, with technical support from the EBRD being considered for private-sector companies installing such systems across industrial zones.

The talks also highlighted opportunities in emerging industrial supply chains, including solar equipment and electric vehicle batteries. Egypt is seeking to strengthen its iron and steel industries through improved scrap availability, while increasing alternative fuel use and fuel efficiency in cement manufacturing.

For the EBRD, the industrial transition represents a broader transformation rather than a collection of individual decarbonisation projects.
Bowman said the bank sees opportunities for deeper cooperation with Egypt across green industrial transformation, renewable energy, resource efficiency and private-sector development.

The EBRD intends to combine financing with policy support and technical assistance to improve project pipelines, reduce investment risks and encourage greater private-sector participation.

For Egypt, the approach reflects a wider effort to position industrial competitiveness and decarbonisation as complementary objectives, while creating new opportunities for clean-energy investment and technology deployment.