In Egypt, the transport sector is the second largest source of emissions (16%) after the power sector. In 2019, the transport sector almost entirely relied on oil, with a small contribution from non-biomass gas fuels (2%) and electricity (0.3%).
Across analysed pathways, the extent of electrification varies, reaching 3 to 28% by 2030 and 24 to 82% by mid-century for the most ambitious scenarios. Pathways with lower electrification rates have higher shares of hydrogen or biofuels, which reach 12-52% and 16-25% of the transport energy mix by 2050, respectively. Given Egypt’s limited available agricultural land and water resources, production of energy crops for biofuels faces challenges; however, IRENA has identified significant potential for jatropha and sugar residues to supply biodiesel in Egypt, with biofuels supplying about 10% of Egypt’s transport energy mix by 2030 in their REmap Case.
In Egypt’s 2021/22 budget, planned investment in the transport sector more than doubled compared to 2020 and years before. The transport sector also received more funding from multilateral and bilateral development partners in 2020 than any other sector, amounting to USD 1.8 billion. Projects include major rail developments and the Greater Cairo Air Pollution Management and Climate Change Project which includes finance for electric buses and charging infrastructure. The government also has plans to manufacture electric vehicles starting in 2022 and install 4000 charging stations in 2021 and 2022. On August 2021, a pilot project was announced to produce green hydrogen for buses.
Egypt’s NDC does not include actions to shift away from oil in the transport sector, but does indicate the government’s intention to promote a modal shift for freight and passenger transit to rail, river and buses.