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Kouchouk urges fair climate finance, expands debt-for-climate swaps

Businessmen Team news 15 November 2025 02:04 PM
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Kouchouk urges fair climate finance, expands debt-for-climate swaps

Finance Minister Ahmed Kouchouk emphasized that climate finance must become more equitable for emerging economies and more aligned with national development priorities. He explained that Egypt supports expanding guarantees, blended risk structures, and hedging instruments to unlock private capital. He added that Egypt also supports redirecting Special Drawing Rights through multilateral development banks to reduce financing costs and extend maturities.

He stated at a meeting of finance ministers during the climate conference in Brazil that the capacity of multilateral development banks to attract private investment and provide the necessary support for climate projects must be fully utilized. He noted the importance of lowering the cost of green finance for climate resilient infrastructure investments to close the financing gap.

Kouchouk added that Egypt supports expanding debt for climate, development, and investment swaps in developing and emerging economies. He stressed that debt and development challenges must be addressed together. He also said that an automatic temporary suspension of debt service should be allowed after major climate shocks.

He noted that Egypt is working to advance solutions that link climate action with inclusive growth and development while considering the social dimension. He explained that no single country can shoulder the high cost of the climate transition alone under rising debt pressures. He added that Egypt is ready to continue working with international partners, multilateral development banks, and the private sector to advance the green transition.

The minister explained that Egypt is looking forward to reforming the global financial architecture and sharing risks among multilateral development banks. He said Egypt has taken bold steps to integrate climate priorities into its fiscal and economic policies. The Sustainable Sovereign Financing Framework has been updated. The first sovereign green bond in the Middle East and North Africa has been issued. Africa’s first voluntary carbon market has been launched to support mitigation efforts. The NWFE platform has also been introduced to align national investment priorities and coordinate multilateral development bank action.

He stated that Egypt is working to strengthen private sector partnerships in renewable energy, water desalination, sustainable transport, and waste management. He added that Egypt is mobilizing private capital and technology while maintaining financial sustainability. He explained that the strong expansion in electricity generation from new and renewable energy reflects the state’s ability to attract private investment to support the climate agenda and reduce emissions.