Procurement Summary
Country : Egypt
Summary : Feasibility Study on the Green Transformation of Egyptian Smes Supply Chains through Carbon Markets
Deadline : 01 Apr 2025
Other Information
Notice Type : Tender
TOT Ref.No.: 116490892
Document Ref. No. : 0002014833
Competition : ICB
Financier : World Bank (WB)
Purchaser Ownership : Public
Tender Value : Refer Document
Purchaser's Detail
Name :Login to see tender_details
Address : Login to see tender_details
Email : Login to see tender_details
Login to see detailsTender Details
Over the last 10 years, around 98% of carbon credits in the VCM have been generated in EMDEs. Hence, innovative tools that encourage SMEs to capitalize on the benefits of carbon markets need to be explored, assessed and implemented if deemed successful. In the dynamic landscape of Egyptian SMEs, this feasibility study aims to analyze supply-side and demand side factors, assess targeted sectors and subsectors, identify potential off-takers, and finally evaluate and design tailored financial instruments for each. This would allow SMEs to better access and benefit from both voluntary and compliance carbon markets. This innovative financing mechanism aims at incentivizing and supporting SMEs to green their businesses with emission mitigation activities and capitalize on their adaptation co-benefits to contribute to the global combat against climate change. The proposed financing mechanism for each sector/subsector will aim to support SMEs in greening their operations by leveraging their participation in a supply chain. This model brings together financiers, SMEs, and a major company (off-taker) at the top of the supply chain to create a mutually beneficial tripartite arrangement. In this framework, banks provide financing to SMEs to implement environmentally friendly practices. In turn, these green practices generate carbon credits, which represent reduced carbon emissions. The off taker then agrees to purchase these carbon credits from the SMEs, creating a guaranteed future income stream that banks can use as collateral. As an alternative, instead of the off-taker directly purchasing the carbon credits, an alternative arrangement could involve pooling the credits into a special-purpose vehicle (SPV) owned by the participating SMEs and managed either by the off-taker or the financing bank. The SPV would then sell the aggregated carbon credits on the open market, with the resulting income directed toward repaying the loans. This arrangement allows banks to extend loans m...
Documents
Tender Notice
CarbonMarketsforSMEs-March2025_GW.docx
116490892.zip