Egypt Green Economy Workshop Report

Egypt Green Economy Workshop Report

Workshop Profile Workshop Title Egypt Green Economy Workshop Organizing Institutions - The Egyptian Environmental Affairs Agency (EEAA) - The Centre for Enviroment and Development for Arab Region and Europe (CEDARE) -The United Nations Environment Program (UNEP) Date 7 April 2013 9:00 am to 5:00 Pm Location InterContinental Citystars, Al Saraya Event Room Number of Attendees 145 Keynote Presenters Mr. Hussein Abaza Mr. Mohamed Saleh Dr. Ayman Abou Hadid Dr. Khaled Abou Zeid Dr. Anhar Hegazi Dr. Ahmed Gaber Ms. Meriem Ait Ali Eng. Maysoun Ali Mr. Walid Abdel Rehim Mr. Mohamed Shawky The lead Author for the Green Economy Scoping Study Modelling Expert for the quantitiative component of the Study Lead expert and moderator for the agriculture working group Lead expert and moderator for the water working group Lead expert and moderator for the energy working group Lead expert and moderator for the waste working group UNEP representative Egyptian Pollution Abatement Project representative Deputy GM of German Development Bank KfW National Bank of Egypt- SME Division 2

Workshop Executive Summary This workshop was held on Sunday 7 th of April 2013. An introductory information flyer in both Arabic and English had been distributed to orient workshop participants and familiarize them with the Green Economy concept. The workshop was structured into three main sessions and two intermittent coffee breaks, which were very useful for networking. In the opening session, welcoming statements were made by Dr. Hossam Allam representing the Centre for Environment and Development for the Arab Region and Europe (CEDARE), Dr. Magda Shoeib representing Egyptian Environmental Affairs Agency (EEAA) and Ms. Meriam Ait Ali representing United Nations Environment Programme (UNEP). This was followed by a detailed presentation by Hussein Abaza to introduce the scoping study and workshop objectives; with particular emphasis on its components, objectives and overall significance. This was followed by an introduction to the T21 model and the quantitative component of the scoping study by Dr. Mohamed Saleh, the modeling expert assigned to the study. He presented the sectors and main model parameters to be simulated and analyzed. The second session mainly aimed at mapping the current challenges and the status quo of each targeted sector in the study including Agriculture, Energy, Water and Waste. A sectoral overview for each was given by a leading specialized expert, as main keynote speakers. The session also included an array of constructive discussion questions reflecting both the interest and concern of participants. 3

After a brief coffee break and during the third session, participants were divided into 4 main working groups covering the four working groups. Each was headed by designated sector expert. Participants were invited to join the working group most relevant to their interests and professional experience. An average of 30 participants joined each group. A brief including background information about existing problems in the respective sector and a set of questions were distributed to facilitate discussions and the sharing of experience and knowledge. In the third session four guest speakers provided presentations providing a review of the main issues related to the sector, existing success stories in green financing and funding possibilities required to support the transition to green economy. Finally, during the closing ceremony, the working groups presented their recommendations in the presence of four high-level officials who supported and endorsed the launching of the study and expert group recommendations. 4

Along with statements made by the Executive Director of CEDARE H.E. Former State Minister of the Environment Dr. Nadia Obeid, Deputy Assistant Foreign Minister for the Environment and Sustainable Development H.E. Ambassador Dr. Ahmed Ihab Gamal Eldin, and President of the State Information Services H.E. Ambassador Dr. Mohamed Badr Eldin, and State Minister of the Environment H.E. Dr. Khaled Fahmy delivered supporting statements to the importance of embracing green economy policy and relevant policy changes required. Hussein Abaza gave final closing remarks to clarify next steps required to conduct and finalize the study. Participants attending the meeting included specialized experts in the targeted sectors, Government officials and guests from different Ministries, Research Institutions, Associations, International Organizations, the Private Sector, and the Civil Society. Ministries represented at the workshop included Ministry of Tourism, Civil Aviation, Environment, Finance, Manpower, Electricity, Agriculture, and Water. United Nations organizations represented at the meeting included the United Nation Environment Programme (UNEP), International Labor Organization (ILO), the United Nations Development Programme (UNDP) he United Nations Educational, Scientific, and cultural Organization (UNESCO), UN Economic and Social Commission for Western Asia. 5

Workshop Objective The objective of the workshop was to launch the Green Economy Scoping Study for Egypt and highlight potential opportunities and challenges for promoting a green economy in the targeted four sectors; Agriculture, Water, Energy and Solid Waste Management. The workshop adopted a participatory and a consensus-building approach that resulted in a constructive dialogue amongst participants. Discussions focused on national green strategies, actions required to support environmental accountability, and identify priority areas of intervention in the respective sectors. Presentation Summaries Opening Ceremony Hussein Abaza, the study s lead author delivered a presentation to introduce the green economy scoping study for Egypt. The presentation first tackled the definition and explanation of the concept of green economy, and stated its benefits. He highlighted the importance of enabling policies, modalities of implementation, the role of different actors and the relevance of the study in promoting a transition to green economy in Egypt. He emphasized that Green Economy is simply a tool for achieving sustainable development, the guiding principles of which need to be identified by each country according to its priorities, socioeconomic circumstances, and cultural and traditional background. First Session: Sectoral Presentations for Greening the Egyptian Economy Dr. Ayman Abou Hadid, the agriculture lead expert provided a detailed presentation for the agricultural sector. He stressed that natural agricultural input supply of land and water is increasingly becoming problematic for Egypt, where the country now suffers from water scarcity and noticeable land salination, degradation and erosion. He also referred to the potential negative impacts of climate change on Egypt. These factors directly threaten agricultural productivity and the aggregate total of cultivated agricultural land. An integrated sustainable water management system and practices are highly required, in addition to addressing institutional fragmentation and legislative gaps. 6

Dr. Khaled Abou Zeid, the water sector lead expert, considered water scarcity as one of the major problems that will impact Egypt socially, environmentally and economically. He specifically tackled the issue of sanitation services and wastewater. He stressed on the fact that current business as usual use of Egypt s water supply will lead to a massive gap between demand and supply. Transitioning to a green economy is therefore essential to achieve water security in Egypt. He suggested that entrepreneurship and innovation could be the answer to Egypt s ailing water sector. Dr. Anhar Hegazi, the energy sector leading expert, focused on the increasing energy supply and demand gap and its urgency to the country s overall economic growth. She stated that Egypt cannot depend on fossil fuels and gas alone. There is a need to change the current energy mix especially that Egypt is currently facing depleting gas resources. Promoting renewable energy and energy efficiency are necessary objectives to be adopted by the government and supported by the private sector. Dr. Ahmed Gaber, the waste sector lead expert, considered greening the municipal solid waste in Egypt is the most prioritized component of the waste sector. He mentioned current practices in solid waste management in the country ranging from collection, transport, transfer, sorting & treatment and disposal. Additionally he identified lack of national and policies, standards, environmental monitoring, and reliable data as major challenges. For the purposes of benchmarking he presented the cases of Vancouver, and Stockholm as possible examples to be followed or get inspired by. As the way forward, he emphasized the significance of information management, and national policies for the sound management of solid waste. Third Session: Financing the Green Economy Ms. Meriem Ait Ali, UNEP representative was the first presenter during Financing the Green Economy session. She discussed the United Nations Environment Programme Finance Initiative (UNEP FI) which is a unique global partnership between the United Nations Environment Programme (UNEP) and the global financial sector. She stated that over 220 global financial institutions are now signatories to the UNEP Finance Intitiative thus providing clear linkages between sustainability and financial performance. Some of the activties of the intiative for 2013-2015 include the promotion of dialogue among Financial Institutions and relevant stakeholders in the region as well as raising awareness through outreach events across the region. She underscored the importance of building and promoting good practices, providing information and effective financial regulations as a pathway to a green economy. 7

Eng. Maysoun Nabil, representative of Egyptian Pollution Abatement Project (EPAP) discussed the aim and purpose of the project as a financial instrument. She stated that EPAP demonstrates the relevance of market based financial/technical approaches to pollution abatement in addition to building capacity of the Egyptian Environmental Affairs Agency (EEAA) and participating banks to manage pollution abatement programmes. The project provides grants and soft loans to interested companies which show willingness to implement environmental projects. Some of EPAP s Co financers include the World Bank, European Investment Bank, French Development Agency, JICA, and the European Commission. Mr. Walid Abdel Rehim, of German Development Bank provided insights concerning environmental credit lines for public and private sector industries undertaken by the bank. He mentioned the bank s PPSI program that aims at reducing the pollution load generated from industry, to reach environmental compliance. It targets existing Egyptian industries of any volume and ownership and it supports cleaner production, relocations, and rehabilitation activities. Financial support given by the program includes 20 percent (SME: 30 percent) of the sub-project s investment costs by means of an interest-free, non-repayable lump sum payment (up to a ceiling of EUR 0.9 million per sub-project). The last presentation was made by Mr. Mohamed Shawky on behalf of the National Bank of Egypt (NBE). He talked about the importance of environmental compliance of projects that the bank funds. NBE is currently the operational platform for soft loans provided in the context of the Egyptian Pollution Abatement Project (EPAP) and also for the PPSI German development bank project. However upon the request of workshop facilitators, Mr. Riccardo Mesiano the representative of The United Nations Economic and Social Commission for Western Asia (ESCWA) made a brief intervention to discuss the ESCWA Green Help Desk Initiative for Egypt. He stated that the main function of this Help Desk is to assist small and medium size enterprises engage in green projects and activities. Its long-term objective is to promote the greening of the industrial sector. It is proposed to house the Green Help Desk at CEDARE. 8

Summary of Sector working groups Recommendations Water Discussions have resulted in the following recommendations: National Policy Information Channels, and Raising Awareness Capacity Building Water infrastructure Water recycling Water Conservation Technology Renewable Energy Accounting for Environmental costs Institutional Framework Harmonizing Industrial, agricultural and water policies Introducing an integrated water management framework Extensive outreach campagins in rural development and for small farmers in particular Targeted capacity building programs for public sector policy makers and relevant staff Modernizing and rehabilitation of water, irrigation and drainage networks according to environmental specs Using technology for waste water reuse Promoting industries and sectors with low water usage rate Introducing innovative technologies to increase water supply and resources The use of renewable energy as input in purification, and wastewater treatment processes Adequate and fair water pricing to reflect costs and account for environmental externalities Creation of a National Water Council Agriculture Discussions have resulted in the following recommendation: Private Sector Involvement Technology Sustainable Agricultural Practices Climate Change and Environment Regulatory Framework Reinforcing public, private and civil society partnerships in implementing sustainable agricultural strategies The introduction of modern irrigation systems and the phasing out of obsolete environmentally harmful flood irrigation practices shifting crop patterns to high value crops Integrating climate change concerns into national agricultural strategy Reforming small farmers cooperative laws 9

Energy Discussions have resulted in the following recommendations: National Policy Accounting for Environmental costs Expanding the Renewables Sector Regulatory Framework Energy Efficiency Restructuring current national energy strategy and harmonizing existing policies Adequate and fair energy pricing to reflect costs and account for environmental externalities Investing in Renewable Energy Infrastructure Proposing codes, and standards for energy efficiency Promoting efficient energy consumption and production through public awareness Waste Discussions have resulted in the following recommendations: Waste Management Mechanisms Access to information and awareness National Policies Regulatory Framework Innovation Separation of Waste at source Extensive outreach campagins especially through eduation and universites - Short term immediate policies to solve the escalating problem of municipal waste - Long term integrated national policy Laws do exist but there is a need for compliance and enforcement mechanisms Incorporating waste to energy practices in different sectors 10

Workshop Outcomes There was a general consensus among speakers, experts, Government officials around the following: Present environmental degradation and ecosystem depletion will negatively impact Egypt s development prospects. A transition to green economy is possible but will require public and private Investments. National integrated and harmonized policies are the main driver for a successful green transition. The availability of access to finance and funding options is paramount to facilitate infrastructure development. Capacity building and skills are essential to properly utilize green technologies and support a transition to a green economy. The way forward Based on the feedback and input provided at the workshop, the first draft of the Scoping Study will be prepared and circulated to the workshop participants for their feedback and input. Working Group meetings will be convened during the first week of June to review second draft of the Scoping Study first week of June to receive input. 11

Annex 1: Working Groups Discussion Questions 1- Towards Greening the Agriculture Sector: What are the main problems facing the sector How can green policies contribute to address existing sector constraints Identify possible areas of intervention and investments needed to green the sector What is the significance of greening the agricultural sector Potential economic, social and environmental benefits 2- Enabling Conditions Required for Greening the Sector: Institutional arrangements and governance (transparent, accountable, participatory) Market-based instruments to correct market failures and account for environmental costs Capacity building requirements, education and training needed Potential role of trade and trade policies conducive to a green economy transition Research and development with focus on green technologies Regulatory framework, compliance, and enforcement Role of private sector and public-private-partnership Public awareness and communication campaigns Monitoring and assessment Integrated policy making Innovation and technology requirements Possible means and sources of finance 12

Annex 2: Distributed Information Note 13