Germany has signed a Memorandum of Understanding with Egypt to develop projects under the Clean Development Mechanism, allowing companies to obtain emission trading credits at relatively low costs.

The deal between the German Federal and the Egyptian Environment Ministries not only set the framework for company-based initiatives but also establish direct contacts between German and Egyptian partners for the development of specific projects.

In addition, KfW banking group and the Egyptian New and Renewable Energy Authority (NREA) reached an agreement on the purchase of emission credits from an 80 MW wind project in Zafarana. The wind park, located near the Gulf of Suez, is expected to become operational at the end of 2007 and yield some 168,000 emission credits annually.