The UK sees Egypt as a potential renewable energy powerhouse — here’s why: The UK is convinced that Egypt should be able to export renewable energy to Europe. “It already exports gas, but the big dream is a direct pipeline of renewable energy right into Europe,” UK Ambassador to Egypt Gareth Bayley told us on the sidelines of the launch ceremony for the Climate Finance Accelerator (CFA) on Tuesday. Egypt has a very deep pool of bankable projects, particularly in renewables, he added, noting that UK development finance institution British International Investment dubbed Egypt as a powerhouse, putting it on the list of one of five markets around the world where it wants to be investing.

Here’s hoping: Egypt has traditionally been seen as a dev finance recipient country, but Bayley thinks it can be more. “I have never seen Egypt as a traditional recipient country. I think economically, we should discuss Egypt as a powerhouse and a country that can be a market leader rather than a market recipient,” he explained.

But for that to happen big finance and the private sector need to sit down: “I've seen climate champions like Mahmoud Mohieldin and Nigel Topping in action. They're not just marketing — they really are saying that there is an enormous amount of private sector capital searching for anything to show their shareholders that they've gone green,” Bayley said. In his eyes, it’s just a question of matchmaking at this point, which is what the CFA has come to do.

UK Prime Minister Liz Truss will continue to provide Egypt with development finance, Bayley reassured us. “It is such a straightforward subject that I don't think it’ll even be put on her desk. It's just going to get done,” he believes. “It is very clear to me that the British government's commitment to Egypt in climate and development financing is as it ever was.”

Now why isn’t King Charles III attending COP27 this year? Despite the king’s commitment to climate, the environment and his Sustainable Markets Initiative, he had to reflect on the balance between his global duties, his interests and being a monarch, Bayley said. “He has, however, said that he would like to be involved in some way to support Egypt in the run-up to the summit and perhaps be present remotely at COP27.”

There are a few other climate projects that the UK Embassy is going to be focusing on until the end of the year. The UK is looking into a couple of proposals to be funded through the International Climate Fund related to green hydrogen, the ambassador said. British International Investment is also launching the Care for Water Package, which looks at desalination and various other aspects of the water industry. The package will be announced at COP27 and is very closely aligned with the government’s NWFE plan, he tells us.

What is the CFA? The GBP 10.8 mn four-year technical assistance program will help build and identify a pipeline of 8-12 bankable low-carbon projects and give them access to financing. The program is currently accepting proposals for projects seeking USD 1 mn in funding. You can apply here through 16 October.