| Project Detail |
The Egypt Vehicle Scrapping and Recycling Program will establish a mechanism through which owners of taxis, microbuses, trailer trucks and buses may voluntarily surrender their vehicles for managed scrapping and recycling, in exchange for financial incentives that may be used towards the purchase of new vehicles from participating vehicle dealers, under a closely monitored process. Carbon finance plays a critical role in ensuring the sustainability of the Egypt Vehicle Scrapping and Recycling Program by ensuring that the program s social and environmental objectives are met. Specifically, the Clean Development Mechanism will support: 1) monitoring of greenhouse gas emissions reductions associated with the program, which otherwise would not be undertaken; 2) an advance payment derived from carbon finance that shall be used towards the site preparation for the development of a recycling facility. At present, scrapped vehicles are only set aside for storage. As space is limited and prolonged storage could pose environmental hazards, this is only short term solution. With carbon finance support and the program s Framework Environment and Social Assessment (FESA), a recycling facility will ensure that scrapped vehicles neither take up land that could be used for other purposes, nor pose unnecessary environmental hazards; and 3) pending a short-term funding shortfall, the subsidy that the Ministry of Finance uses to encourage vehicle owners to surrender their old vehicles for managed scrapping and recycling. |
