The OECD Green Growth Policy Review (GGPR) of Egypt is part of the Egypt-OECD country programme, which was officially launched by OECD Secretary-General Mathias Cormann and Dr Mostafa Madbouly, Prime Minister of the Arab Republic of Egypt, in October 2023. The report aims to review Egypt’s policy framework for green growth and provide recommendations to help the country move towards a green and sustainable economy.

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Green growth and sustainable development are high on Egypt’s political agenda. Egypt’s Vision 2030 promotes an integrated approach towards sustainable development. The government is committed to promoting an investment-friendly climate to turn environmental challenges into opportunities. It aims to allocate all its public investments to green projects by 2030. Over the past decade, Egypt has made progress towards achieving the Sustainable Development Goals, but challenges remain. The country is among the best economic performers in the Middle East and North Africa region. However, economic growth has not benefited all Egyptians equally. High population growth, land-use change, pollution and climate change are increasing pressure on the country’s natural environment. Further progress will require stronger transformative efforts to advance towards a greener economy.

The Assessment and recommendations present the main findings of the OECD Green Growth Review of Egypt and identify 40 recommendations to help Egypt make further progress towards greening its economy. The OECD Working Party on Environmental Performance reviewed and approved the Assessment and recommendations on 28 May 2024.

This chapter provides a snapshot of Egypt’s environmental trends related to climate change, air, waste, water and biodiversity, highlighting some of the major achievements, remaining challenges and key policy responses. Drawing on OECD green growth indicators and national information sources, the chapter reviews national policy objectives and targets, as well as international commitments. Beginning with an overview of the main socio-economic developments, the chapter presents the country’s progress in moving towards i) a low-carbon, climate-resilient and energy-efficient economy; ii) a resource-efficient economy; and iii) sustainable management of its natural capital.

This chapter discusses Egypt’s progress in greening its economy on the path to sustainable development. It examines the policy and institutional framework for sustainable growth, then reviews the use of tax policy to pursue environmental objectives and progress in removing subsidies that can encourage environmentally harmful activities. The chapter also analyses investment in environment-related infrastructure, such as that for renewable energy and sustainable transport. The role of international climate and development finance is also discussed.

As engines of growth, cities can play a pivotal role in supporting Egypt’s green transition. At the same time, cities are major sources of pollution. They need to contribute more strongly to national climate mitigation efforts and build resilience to multiple climate-related risks, especially heatwaves, flash floods, dust storms and rising sea levels. The role of subnational governments is essential in advancing place-based climate action. This chapter examines opportunities and challenges to make cities more inclusive and a driving force for Egypt’s green transition. It includes brief case studies on climate action in the Governorate of Alexandria and the city of Al-Kharga, an oasis in the New Valley Governorate.