81317493-Strategic Corporate-Startup Partnerships for Industry Climate Solutions (SCSP-ICS)

Project: Private Sector Innovation 2: As global markets increasingly prioritize low-carbon manufacturing and sustainable production, Egyptian industrial companies must adopt energy-efficient technologies and resource optimization strategies to remain competitive. Beyond cost savings, compliance with international regulations such as the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Due Diligence Directive (CSDDD) is now a critical requirement for export/ international oriented corporates. Climate (tech) startups offer innovative, scalable solutions for the industry that affects the whole value chain, all from carbon reduction, energy efficiency, to sustainable manufacturing (cleaner production, resource efficiency, circular designs) and waste management, yet Egypt"s startup ecosystem lacks the structured technical and financial support necessary to help these ventures develop viable and market relevant business models and attract investment. Addressing these gaps through targeted technical qualification programs, investor readiness support, and strategic matchmaking is essential to unlocking their full potential. By systematically integrating corporates into the startup support framework, solutions are directly aligned with market needs, increasing their potential scalability across international markets. Additionally, investors gain access to de-risked, investment-ready startups with corporate validation, ensuring greater confidence and accelerating capital flow into climate innovations. The German Federal Ministry for Economic Cooperation and Development (BMZ) subsequently commissioned the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to implement the "Private Sector Innovation II" (PSI II). PSI II started its activities in June 2024 and will probably end in March 2025. In partnership with public and private stakeholders the main objective of PSI II is "to improve the competitive situation of the Egyptian industry in light of increasing market requirements for a green transformation of the economy". With the main focus of supporting the Egyptian industrial sector in adopting and implementing green transition and transformation measures, the project consists of four interconnected outputs: 1. Green Institutional Capacity Development 2. Green Finance 3. Green Business Development Services 4. Climate Startups.