Brussels, 15 June 2022
Today in Cairo, on the occasion of the visit of Commission President Ursula von der Leyen and her meeting with the President of Egypt, Abdel Fattah El Sisi, the EU and Egypt issued a joint statement on climate, energy and the green transition.
President von der Leyen said:
I look forward to working with Egypt as COP27 Presidency to build on the good momentum from last year in Glasgow. Egypt is also a crucial partner in our efforts to move away from Russian fossil fuels and towards more reliable suppliers.
The President’s full remarks at the joint press point will be available here. The joint statement commits both parties to work together on a global just energy transition, on improving adaptation capacity, mitigating loss and damage due to climate change, and on increasing climate finance to respond to the needs of developing countries. The cooperation will have a particular focus on renewable energy sources, hydrogen, and energy efficiency.
In light of the new geopolitical and energy market reality after the Russian invasion of Ukraine, and following the President’s visit to Israel earlier this week, today in Cairo the EU also signed a trilateral Memorandum of Understanding (MoU) for the export of natural gas to Europe from Israel and other sources in the Eastern Mediterranean region via Egypt’s LNG infrastructure.
The MoU, which will help the EU achieve the diversification goals set out in the REPowerEU Plan and in the External Energy Engagement Strategy, was signed by Commissioner for Energy, Kadri Simson, together with Ministers El Molla and Elharrar. The three parties will work together on the stable delivery of natural gas, in a way that is consistent with long-term decarbonisation objectives and based on market-oriented pricing. They will also promote the reduction of methane leakage, and in particular examine new technologies for reducing venting and flaring and explore possibilities for the utilisation of captured methane throughout the entire supply chain. A full press release is available here.
Source – European Commission
More information:
EU-Egypt Joint Statement on Climate, Energy and Green Transition
Brussels 15 June 2022
Fostering sustainable development, combatting climate change and environmental degradation, ensuring energy security and a balanced and just green transition are shared priorities for Egypt and the EU.
Acknowledging the urgency to take ambitious measures and inspire global action, we reaffirm our joint commitment and determination to accelerate the just energy transition and develop a resource-efficient, socially just and low emissions and climate-neutral economy to enhance shared prosperity through resilient and sustainable growth.
Egypt and the EU recognise the full implementation of the 2030 Agenda for Sustainable Development and the Paris Agreement as fundamental pillars to prepare the world for future systemic shocks. Trade, investments and policy reform in support of these agendas and based on their agreed principles are the drivers and preconditions of sustainable recovery and development.
We are committed to meeting the goals of the Paris Agreement and keeping the 1.5 degrees limit on global temperature rise within reach, building on the Katowice COP outcomes, the Glasgow Climate Pact and other relevant COP decisions, and through updated nationally determined contributions, low emission plans, net-zero strategies and policy implementation. In responding to science, we urge all countries to explore ways in which they can pursue the highest possible ambition, and take steps towards accelerating the implementation of the mitigation pledges made, make substantial progress towards an ambitious and transformative adaptation approach and fulfil the climate finance pledges and commitments. The transition to a green and circular economy, in particular ensuring the integrity of all ecosystems and biodiversity protection and the sustainable management of resources at all levels, as appropriate, including water, is a key element to achieving climate-neutral, sustainable growth.
Egypt and the EU will join efforts to maintain political momentum on the successful implementation of the Paris Agreement and ensure ambitious outcomes at COP27. Acknowledging the considerable progress made by both sides, we reiterate the importance of:
- all Parties revisiting and strengthening the 2030 targets in their nationally determined contributions as necessary to align with the Paris Agreement, taking into account different national circumstances in time for COP27,
- fostering a rapid global just energy transition setting us on a pathway to global net zero emissions by mid- century,
- increasing adaptation capacity, enhancing implementation of adaptation and resilience actions on the ground as well as continue to cooperate towards averting, minimising and addressing loss and damage due to climate change impacts,
- accelerating the alignment of financial flows with the Paris Agreement goals and the delivery of the USD 100 billion goal as soon as possible, and at least double the collective provision of climate finance for adaptation in developing countries from 2019 levels by 2025, and further enhance the mobilization of climate finance to respond to the needs of developing countries.
In the context of our efforts, we will ensure an active engagement and meaningful dialogue from all relevant stakeholders, especially civil society organizations, private sector, women groups and the youth.
The EU will do its utmost to support the work of the Egyptian COP27 Presidency to forge a path towards a greater global ambition, making substantial and equitable progress across all issues, especially on mitigation, adaptation and finance, and ensure a successful COP27, with a focus on implementation and delivery on Glasgow and other commitments.
Egypt and the EU highlighted the importance and urgency of adaptation action and its impact on livelihoods and development, and in this regard agreed to further collaborate on an ambitious and transformative adaptation approach that supports national action, cooperation and coordination at all levels, acknowledging the cross-cutting nature of the adverse climate induced impacts including on development, livelihoods, displacement and peace.
The EU and Egypt acknowledge that the new geopolitical and energy market reality requires an acceleration and an intensification of this partnership. By acting together as reliable partners, Egypt and the EU will address the common challenges of security of energy supply, diversification of energy sources and transition towards a resource-efficient, socially just, resilient and, as appropriate, climate neutral economy, founded on the absence of distortions to renewable energy and clean fuel and energy trade and investment in related value chains. For this purpose, the EU and Egypt will step up the cooperation with a particular focus on renewable energy sources, hydrogen, and energy efficiency actions, building on Egypt’s significant potential for the cost-effective expansion of renewable power generation, clean fuel production in particular hydrogen and the EU’s extensive support to these sectors throughout the years. We will join efforts to improve the policy, regulatory, financial, technical and environmental conditions and instruments needed to enhance the conducive business environment and achieve substantial flows of investments at scale so as to meet the country’s sustainable development requirements, reduce greenhouse gas emissions and support the expansion in production capacities of renewable energy and hydrogen, while committing to identify and implement appropriate means to ensure that bilateral trade and investment is not distorted, in particular through export restrictions such as producer cartels, export licensing, export monopolies or dual pricing regimes, distorting incentives or subsidies.
The very favourable endowment with renewable energy sources offers Egypt the opportunity to become a regional hub for the production and export of renewable and low carbon energy. Egypt and the EU will work jointly, through a Mediterranean Hydrogen Partnership, to promote investments in the accelerated growth of renewable electricity generation; the strengthening and extension of electricity grids, including trans-Mediterranean interconnectors; the production of renewable and low carbon hydrogen; the production of hydrogen-based products and the construction of infrastructure for the storage, transport, distribution and export towards the EU of hydrogen and hydrogen derivatives compatible with EU regulations and definitions. Hydrogen cooperation between Egypt and the EU should be complemented by close regional cooperation with other countries in the Mediterranean region, with a view to building up clean hydrogen production capacities in the immediate geographical neighborhood of Europe. For this purpose, facilitating access to finance for hydrogen projects that, in the initial phase of development of the industry, may require public support through incentives, concessional finance, access to hydrogen markets and de-risking mechanisms will be crucial.
The EU will accelerate the process of its transition towards a zero carbon power system, in which renewable electricity and hydrogen will play a key role. This will include provision of support and investments in technologies that competitively use these sources of renewable, low carbon power, which in turn will require a stable, competitive and reliable supply and demand.
Security of gas supply is a common major concern. Egypt and the EU will work together on the stable delivery of gas to the EU and on the sustainable exploitation of natural gas resources in the framework of robust long-term decarbonisation objectives and measures to manage and reduce fugitive methane emissions. In that context, Egypt and the EU welcome the signature of the Memorandum of Understanding between Egypt, Israel and the European Union represented by the European Commission, signed on June 15, 2022.
Egypt and the EU will reinforce their bilateral cooperation on green transition based on a spirit of shared ambition, principles and partnership to allow both sides to reap all the benefits from investing into a low emissions, climate-neutral and climate-resilient future in line with the EU-Egypt Partnership Priorities. The EU has provided extensive support to Egypt on mitigation and adaptation related issues including water resource management, development of sustainable agriculture, expanding public transport networks, the roll out of renewable energy, promotion of energy efficiency and pollution abatement. Support to these sectors will continue and further enhanced as appropriate in the future. We will deepen our dialogue and technical exchanges in areas of mutual interest on energy and climate on bilateral and regional dimensions and we will work to further promote sustainable investments and private sector’s engagement in green transition. We will also scale up our cooperation at all levels in areas such as early warning mechanisms, climate risk management and satellite monitoring to improve the knowledge base around adaptation and further improve the preparedness of our economies to respond to adverse impacts of climate change, including slow onset events. The Association Agreement, the EU Global Gateway, the EU Agenda for the Mediterranean and its Economic and Investment Plan, and the EU-Egypt Partnership Priorities that the Association Council will formally endorse on 19 June will play an important role to leapfrog the opportunities of a green transition, including through flagship investments in renewable energy and sustainable resource management, building on the implementation of ambitious climate policies and targets in Egypt.
Source – EU Commission
Statement by President von der Leyen with Egyptian President El-Sisi
Cairo, 15 June 2022
Thank you very much, Mr President, for the warm welcome. I am very pleased to visit you here in Cairo to discuss indeed, what we did today, how to broaden and intensify a very good cooperation we do have already. There is a strong basis and foundation of different files, on which we are working together. And there is a strong commitment and the knowledge of trust and reliability between both sides. And this is a very good and substantial foundation to increase the cooperation and to strengthen the bonds between us. There are many topics that are indeed the proof of the intense cooperation we have. And they are reflected in the joint statement that is being prepared for the Association Council that is upcoming in the next days. And it reflects the width and the depth of our cooperation
I want to focus today on, of course, two main topics that we have been discussing intensively. The first one is, of course, the topic of food security. And we see that Ukraine, that used to be the granary of the world before the war, is now in a very difficult situation. And we have to do everything so that the supply of grain, that is trapped in Ukraine because of the Russian war, is being exported to the world, so that Russia is no more blockading the export of Ukrainian grain via the Black Sea. At the moment being, 20 million tonnes of grain are stuck, are trapped in Ukraine. And we have seen that food prices have been skyrocketing in many countries. 80% of your wheat imports are coming from Russia and Ukraine. So this is a concern about food security and food prices that is real. And therefore, let me reassure you again that we stand by your side also concerning this topic. We will provide an immediate relief of EUR 100 million to Egypt for the immediate situation now of food security. This will hopefully help to increase the grain storage capacity and will provide finance for rural businesses and farmers. But that is only for the short term.
And the two of us have intensively discussed that, in the mid and long term, we will also have to completely renew and boost the local food production. And therefore, the European Union is very interested in investing in the local food production. We will devote EUR 3 billion to agriculture and nutrition, water and sanitation programmes over the next years, here in the region. These investments will support food systems in your region and elsewhere, so that we can together discuss how to develop solutions and technologies that are fit for purpose here in Egypt. These are the modern technologies of precision farming, you mentioned artificial intelligence, the new crops adapted to climate change. Because it is so important for us that, in the region, the production of food is improved and increased, and thus the dependency from other regions is reduced. Over time, this will ensure stable supplies of quality and affordable food for all. And this is the common interest that we do have. Egypt will be at the heart of this major shift. I am very much looking forward, Mr President, to working with you on this, also to mobilise together a strong international response.
I think – and we have discussed that – that it is very important that here we stand together globally to manage this food security crisis; that we find solutions that are fair for everybody; that we look at the distribution of grain, for example, worldwide; and that we really have an emphasis on vulnerable countries that are dependent on the daily food, so that here solidarity is globally organised. And this is a task that we want to approach together.
Then, of course, we want to extend our cooperation on energy. It is known that Russia’s war against Ukraine has exposed our European dependency on Russian fossil fuels. And we want to get rid of this dependency. We want to diversify to trustworthy suppliers. And Egypt is a trustworthy partner. For us is important that we really discuss the whole width of energy supply that is possible.
Today, we are already taking a very important step, as we have signed in the morning a Memorandum of Understanding of natural gas delivery from Israel to Egypt. Here, gas will be liquefied and then transported to the European Union. This is a big step forward in the energy supply to Europe, but also for Egypt to become a regional energy hub. It is for us also very important to look forward into the new forms of energies. And these are, of course, the renewable energies. And here, I must say that you are in a very lucky position as you have the resources that are necessary for renewable energies in abundance – the sun, the wind. So these will be the energies of the future. And the demand will be enormous. And therefore, it is in our common interest to explore together how to put the infrastructure and the technologies in place that are fit for renewables. We are, for example, working together on a hydrogen partnership. It is moving nicely forward. And we are both looking forward to launching it at COP27 in Sharm El-Sheikh.
And this bring me indeed to the point: COP27 in Sharm El-Sheikh. Egypt has the potential to be a leader in renewable energy production and export. And therefore, we all know that your country will play a crucial role in COP27 to keep the global community on track towards our climate goals, but also to boost the modern technologies for clean energy that is so necessary.
So, Mr President, thank you again for welcoming me here. We have made enormous progress on the one hand, but we also see the width of topics that we have to work on together. And I am very much looking forward to that.
Source – EU Commission