The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) planning to make a great contribution in the renewable energy project in Egypt worth US$ 1 b. The Bank said it would provide US $ 352.3 m while GCF would finance US $ 154.7 m. The total cost of the initiative is estimated at US $ 1 b and is expected to be covered by additional funds From sponsors and other lenders. Egypt has set a target to reach 20% renewable energy by 2022, the funding supports this Egyptian government's Strategy, allowing the independent power producers to make their investments in the first wave of private renewable energy production in Egypt. This initiative funding sounds to be the largest contribution by GCF since it started to make full-scale operations. In the same context the funding is expected to begin flowing in September following the funded activity agreement (FAA) signing between GCF and the EBRD. THE GCF Executive Director Howard Bamsey said that GCF Board has approved three diverse projects proposed by the EBRD like a hydro power project in Tajikistan, a water conversation project in Morocco and a sustainable energy project covering 10 countries, in addition to the Egyptian initiative which was described by the EBRD President Sir Suma Chakrabarti as the nearest project to implement among the GCF approved EBRD ones, reflecting the very productive cooperation between the two organizations. "Climate finance is crucial to the EBRD's strategy, we are aiming to dedicate 40 %t of our annual investments to the green economy by 2020," Chakrbati said, referring to the EBRD's Green economy Transition policy, launched in 2015. The Green Climate Fund which is the largest global fund with the ability to leverage the private sector in tackling climate change, was established in 2010 to finance climate change projects and programmes that help developing countries to adapt with the climate impacts and to reduce greenhouse gas emissions.
