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Upscaling Regenerative Farming in Egypt

to 40,000 Farmers

An Effective Way to Address Egypt’s Challenges in the Field of Food Security, Climate Change and Poverty.

Overall Goal: Improve the livelihood of smallholder farmers in Egypt and mitigate climate change.

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Phase 3 Goal: Transfer 40,000 Egyptian farmers from conventional to regenerative agricultural practice and improve their livelihood

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Time Frame: 2023-2025

Specific Objectives for Phase 3

1. Secure EUR 211 Mio. of finance
2. Get 40,000 farmers certified under Economy of Love (EoL) with a total area of 250,000 acres
3. Plant 11 Mio. trees
4. Install a total of 250 MWp of PV solar panels
5. Produce 2 Mio. t of compost (1st year kick-start)

Impact

1. 935,625 EoL Carbon Credits generated
2. 82 Mio. liters of diesel saved
3. 13% (avg.) of increased profit of EoL farmers compared to conventional (with same product prices)
4. >600 jobs created
5. EUR 1.6 Mio. invested into community development projects through EoL Fund (e.g. beehives, basic education, micro-loans for animals, etc.)

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Assumptions

1. Financing schemes for farmers for PV, compost and trees is available (EUR 206 Mio.)
2. Acceleration fund for Training and Capacity Building and Data Collection is available (EUR 2.6 Mio.)
3. 935,625 EoL Carbon Credits can be sold with a total value of EUR 33 Mio. (EUR 35 / EoL CC)

Context / Background on Farming Situation in Egypt

Total Area of Egypt: 1 Mio km2 = 247 Mio of acres

Total Population: 35 Mio. (1970); 107 Mio. (2022)

Total GDP in PPP per capita: 11,566.05 USD (2021)

(world average = 21,283.47)

Arable Land in Egypt: Total area = 4.5-8.2 Mio. of acres

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Key facts on Egyptian Agriculture Sector:

• ca. 12% of GDP
• Major Crops: wheat, beans, fruits, rice, corn (maize), sorghum, fava (broad) beans (fūl), sugar beet, sugarcane, tomato, potato, onion, orange, grapes and dates.
• Ca 6 Mio. t of export volume
• Ca. 8 Mio. people employed (85% = small holder farmers)
• Average area of small holder farmer: < 1 acre
• Average farmer income: 65,000 - 100,000 EGP / year (ca. 2,000 - 3,125 EUR / y.)
• Ca. 50 Mt of CO2e emissions (ca. 20% of total CO2e emissions of Egypt)

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SEKEM Vision

Wir streben nach einer nachhaltigen Gemeinschaft, in der jeder Mensch sein individuelles Potential entfalten kann, in der die Menschen in einem lebendigen und lernenden Organismus zusammenleben und alle wirtschaftlichen Aktivitäten im Einklang mit ökologischen und ethischen Prinzipien durchgeführt werden.

„We strive towards a sustainable development towards a future where every human being can unfold his or her individual potential; where mankind is living in social forms reflecting human dignity; and where all economic activity is conducted in accordance with ecological and ethical principles.“

Dr. Ibrahim Abouleish, Founder of SEKEM (1937-2017)

Building on a strong, holistic vision

1977 - 2023 �45+ years track record: The miracle in the desert works!

1983

Today

Status Quo (March 2023)

• > 2200 farmers (of which ca 25% supply SEKEM)
• > 13,000 acres of registered land
• Certifications of Farmers: Demeter, Organic, BioSwiss, EoL, Fairtrade, etc.

SEKEM Suppliers under Demeter Egypt �Since more than 40 years, SEKEM is working with small scale farmers all over Egypt based on regenerative principles.

Economy of Love (EoL) Standard Serving 4 Dimensions

Economy of Love ('EoL') is a certification standard for products that are sustainable, ethical and transparent throughout the supply chain.

Context & Stakeholders

The EoL Standard has 5 Main Pillars

Context & Stakeholders

The EoL Standard Integrates Different Sources to Generate Carbon Credits

1 tree

= 0.03 t

CO2 -eq/year

Sequestration

1 acre

= 1.6 t

CO2 -eq/year

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Sequestration

1t compost

= 0.6 t

CO2 -eq/year

Avoidance

1 Kw Capacity

= 1.35 t

CO2 -eq/year

Avoidance

The Carbon Pillar: Understanding One EoL Carbon Credit

Governance Structure Behind EoL Carbon Credits

Process of Verification & Validation

of EoL Carbon Credits

Example estimation of the

EoL Carbon Credit Model for smallholding farmers

*Assuming that 80% of the

revenue will be paid to the farmer

The Effect of EoL Carbon Credits on a Farmer’s Profit & Loss Performance Over Time

Note: The average P&L of small scale farmers in the Nile Delta was calculated from the DOC trial based on Winter 2020-21 and Summer 2020 season and for the following crops: Maize, Soya Bean, Zucchini, Faba Beans and Wheat

The EoL Carbon Credit Model Got Momentum At COP27 in Egypt

Demeter Egypt succeeded to get 2100 new farmers in transition in 2022. The model for Upscaling EoL was very well received in COP27 (Sharm El Sheikh) and new breakthroughs are expected in COP28 (Dubai). International companies (e.g. Danone) and UN agencies (World Food Program) are keen to collaborate.

Phase 1: Prototyping

In 2019, SEKEM Wahat Farm continues prototyping the concept of Economy of Love Carbon Credits.

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EoL Carbon Credits produced in 2022

Phase 2: New Farmers In Transition

In 2022, 2,100 smallholder farmers have been successfully onboarded in the EoL CC scheme.

Phase 3: Upscaling

End of 2025, we aim to have enrolled 40,000 new smallholder farmers in the EoL CC scheme

EoL Carbon Credits produced per year

Impact of Phase 3

Other Strong Partners for Selling EoL Carbon Credits and Planting Trees

Knowing is not enough;

we must apply.

Willing is not enough;

we must do.

Johann Wolfgang von Goethe