With Egypt hosting Cop27, DCarbon's chairman is optimistic that the country's share of ESG financing would increase by 50%

Although demand for sustainable finance that takes ESG principles into account has been strongest in developed economies, the IMF found that it increased in emerging markets in 2017. The percentage of foreign financing going to emerging economies (excluding China) that is made up of ESG investments has quadrupled in recent years, the fund reported. Mr. Shalaby believes that now is the time to attract ESG investments to Egypt, notably in the energy and real estate sectors, thanks to the impending Cop27 and the country's decarbonization prospects. According to his interview with The National, "it will double because this time, Egypt is ready with a portfolio of projects that are ready for being financed."

Mr. Shalaby launched DCarbon in 2015 to manage and accelerate sustainable transitions at the levels of business, government, regions, and the world. Among the company's ten primary industries served are banking, finance, oil and gas, petrochemicals, construction, real estate, healthcare, and information and communications technology. Members of the DCarbon team have extensive experience in policy, economics, and technology, making them experts in all aspects of sustainability and climate change. When it comes to reducing carbon emissions, Mr. Shalaby thinks Egypt and other developing nations in the Middle East and Africa have "quite good prospects to attract finance," particularly in the field of climate change mitigation.

“When it comes to developing countries, we are more focused on adaptation. But when it comes to developed countries, they are more focused on mitigation,” he said. “They want to direct finance towards mitigation and not adaptation.” Mr. Shalaby identified six major sectors that are expected to lead development in the Middle East and Africa: energy and electricity, agriculture, logistics, information and communications technology, construction, and property, and transport. “These are the major six drivers that are going to drive socioeconomic development in the region, but unfortunately, these six sectors are the biggest contributors to greenhouse gas emissions, so we need six decarbonization plans for these sectors,” he said. Green hydrogen and property will be the two major sectors that will be highlighted at Cop27 and Cop28, which will be held in the UAE, as top opportunities for decarbonization, Mr. Shalaby said.

It was agreed upon in the 2020 European Green Deal that all greenhouse gas emissions must be eliminated by the year 2050. The International Renewable Energy Agency predicts that by 2050, hydrogen will be responsible for 10% of the world's energy consumption and 12% of the decrease in carbon dioxide emissions. On the other hand, Egypt plans to boost the percentage of its energy that comes from renewable sources from roughly 11% in 2019 to 42% by 2035. This year, the Suez Canal Economic Zone in Egypt has inked more than a dozen preliminary agreements with multinational corporations for green hydrogen and ammonia production, and it hopes to finish roughly $25 billion worth of green energy accords at Cop27.