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Hussein Refaai, Chief Executive Officer and Managing Director of the Industrial Development Bank (IDB), emphasized that climate change is no longer merely an environmental concern, but has become a global developmental and economic issue that requires concerted efforts from governments, the private sector, and civil society. He noted that banks play a pivotal role in leading the transition toward a sustainable and green economy.

These remarks were made during IDB’s participation in the third panel discussion of the 19th edition of the “People and Banks” Economic Conference, held under the title “The Role of Banks in the Battle Against Climate Change.” During the session, Refaai highlighted the Bank’s experience in promoting sustainable finance and attracting green investments, stressing that sustainability lies at the heart of the Bank’s strategy as a cornerstone for long-term success and enhanced societal well-being.

Refaai pointed out that the Bank is keen on embedding Environmental, Social, and Governance (ESG) principles into its financing and investment operations to ensure a balance between economic growth and environmental and social responsibility. He explained that IDB is working on setting clear and measurable green transition KPIs, directing capital toward sustainable sectors, and enhancing financial inclusion through development programs that support sustainable industrial transformation.

He added that integrating sustainability standards into credit decisions has become a necessity, underscoring the importance of launching green loans, bonds, and sukuk at concessional rates, and designing flexible financing tools to attract private capital. He also highlighted the Bank’s commitment to transparency and disclosure through periodic sustainability reports that strengthen investor confidence.

Key Initiatives Supporting Climate Action

Refaai reviewed a package of policies and programs adopted by the Industrial Development Bank to translate its commitment into tangible action in support of the state’s efforts to combat climate change, أبرزها:

In the field of financing:

• Financing fertilizer plants under the Industrial Pollution Abatement Program

• Financing waste collection and solid waste management projects

• Supporting solar energy and water desalination projects in line with Egypt’s Vision 2030 for sustainable development

• Providing financing to microfinance institutions to enhance financial inclusion and create job opportunities

In the field of investment:

• Participation in securitized sukuk and bonds linked to the Sustainable Development Goals (SDGs)

• Financing healthcare service projects

• Investing in environmentally friendly industrial companies that contribute to environmental protection and balance

In environmental initiatives:

• Cooperation with the National Bank of Egypt under the Environmental Compliance Program to support factories in applying environmental standards

• Participation with the Ministry of Electricity and Renewable Energy and the German Agency for International Cooperation (GIZ) in implementing solar energy systems for small and medium-sized enterprises

• Cooperation with the Ministry of Environment in the Environmental Pollution Control Program

• Contributing to the vehicle conversion-to-natural-gas initiative, and the bakery conversion program in cooperation with the Micro, Small and Medium Enterprises Development Agency (MSMEDA)

• Supporting projects for the production of energy-efficient LED lighting to reduce carbon emissions

• Developing an Environmental and Social Risk Management (ESRM) system in cooperation with a specialized firm, and training dedicated banking cadres to implement it

• Preparing a carbon footprint report for the Bank’s headquarters as part of a comprehensive emissions reduction plan

• Cooperating with European universities and international financial institutions to acquire best practices in sustainable finance

In conclusion, Hussein Refaai affirmed that the Industrial Development Bank will continue to support the state’s efforts to address climate change through sustainable finance, financial innovation, and the expansion of development partnerships, stressing that the Bank’s ultimate goal is to achieve balanced economic development that preserves resources and serves future generations.