Smart Technology and Energy Efficient Production (STEP Phases 1 & 2)

Project Summary:

The project aimed to increase the use of and investment in clean technologies in Egypt. A growing population and rising fuel demand, coupled with a finite supply of fuel, creates a security risk for Egypt. In 2013, Egypt became a net energy importer—a situation that poses serious challenges to industrial and economic growth. At the same time, high energy subsidies discourage energy-efficient practices. This World Bank KGGTF-funded green growth implementation program aims to encourage growth in clean technology manufacturing and services. First, new regulatory tools need to drive investment in new systems. These clean technologies, which will be identified through a market gap analysis and minimize fuel use and greenhouse gas emissions, will be leveraged to create cost savings and increased competitiveness in a new green economy.

List of Activities:

• Develop regulatory tools which can support up-take in clean technologies (incentives, standards, & labelling)
• Increase the investment, promotion, and use of clean technologies
• Clean Technology Market Gap Analysis
• Investment Promotion on Targeted Clean Technologies
• Implementation support for roadmap and investment generation

Outcomes:

Output 1:

• Analysis to identify the potential market and Egypt's unique value proposition for clean technologies
• Prioritize prioritized 5-10 clean technologies and investor perception analysis
• Diagnostic of regulatory and institutional framework for clean technology

Output 2:

• Analysis and recommendations on investment promotion and incentives options
• Identify opportunities for cluster development, innovation, skills development and supply chain development
• Identify marketing and promotional opportunities

Output 3:

• Strategy and action plan in order to increase the growth and use of clean technology
• Business cases / feasibility studies for the specified technologies to promote actionable investments
• Awareness raising and promotion of opportunities
• Training for policy makers and stakeholders

Outcomes:

The project focused on market gap analysis to identify which technologies have a competitive advantage for investment in Egypt and how to attract those technologies which are best suited for import. The team would shortlists the relevant technologies and list of potential investors or parties of interest to address the key barriers to the growth of these technologies in Egypt. In the next phase, the project moved towards mobilizing investments through articulating a strategy and action plan for MoTI to increase use of clean technologies and drive investment into the sector with actionable businesses cases.  This also entailed promoting and awareness raising of potential investment opportunities and the impact for businesses, and capacity building for policy makers use policy instruments to grow the sector. 

Collaboration with K-Partners and Others:

• WBG internal partners: World Bank and IFC teams have been working during the Country Partnership Framework (CPF) process to identify high impact areas of collaboration to formulate Joint Implementation Plans (JIPs). Clean Technology for Energy Efficient industries part of the JIP on energy being developed to address Egypt’s energy crisis and systematic challenges. The key counterpart in Egypt to coordinate project activities in the country will be the Industrial Council for Technology and Innovation (ICTI). The Egyptian National Competitiveness Council (ENCC) is an independent policy advisory body established through the efforts of several Egyptian businessmen, academia, and other partner organizations. ENCC will collaborate with the project as part of the consultation efforts with the private sector through a PPD process, and establishing a platform and feedback mechanism between the private sector and policy makers.
• K-Partners: Korean Energy Management Corporation (KEMCO) where the team would seek institutional capacity building and training.  Korean Institute of Energy Technology Evaluation and Planning (KETEP) where the team would seek practitioner training and best practice for evaluating technology and developing an action plan. As well, the team would seek to learn from Korea’s experience establishing Green Technology Network.
• Other external partners: The project has been coordinating implementation with UNIDO to leverage resources and increase reach.  In particular, the team has looked to sequence and align capacity building and awareness raising activities to target particular technologies and stakeholder groups (i.e. UNIDO to focus on motor systems for industrial player, while the project would focus on government officials).