IMF阿拉伯埃及共和國技術援助報告氣候公共投資管理評估

ONLY

FOROFFICIALUSE

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).

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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.

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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

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aseriesofactivitiestoimplementtheserecommendations,andatime-boundactionplanforthedifferentactivities(Table2andAppendix1).

Figure1.ClimatePIMAResults

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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.

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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

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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.

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