Egypt is preparing to launch a national climate finance platform aimed at decarbonising its industrial sector and protecting exports from the European Union's incoming Carbon Border Adjustment Mechanism (CBAM), senior ministers said Wednesday. The new platform, which will mirror the country's successful Nexus of Water, Food and Energy (NWFE) Programme for green investment, is designed to mobilise concessional financing, grants, and technical assistance for low-carbon manufacturing projects, particularly within the private sector. "The state is taking serious steps to prepare Egypt's industrial base for international environmental shifts, especially the implementation of CBAM," Minister of Industry Kamel El-Wazir said during a coordination meeting with Planning Minister Rania Al-Mashat, according to a Cabinet statement. The two ministries have agreed to establish a joint technical committee to oversee implementation of priority decarbonisation projects and coordinate directly with development partners. The proposed platform would serve as a central hub connecting Egypt's industrial strategy with international climate finance, including tools offered by the Green Climate Fund (GCF), the European Bank for Reconstruction and Development (EBRD), and the Climate Investment Funds (CIF). CBAM, set to begin phasing in this year, will impose carbon tariffs on imports into the EU unless they meet stringent emissions standards—a move that poses risks to key Egyptian exports unless mitigation efforts accelerate. "Non-oil manufacturing has been the top contributor to economic growth over the past nine months, and we want to preserve that momentum by enabling a green transition," Minister Al-Mashat said. She noted that Egypt's non-oil manufacturing sector grew by 17.7 per cent in the second quarter and 16.3 per cent in the third quarter of fiscal year 2024/25. In response, the government is coordinating with multilateral lenders and development institutions to deploy more than €270 million in concessional loans and grants through the Green Sustainable Industry (GSI) Programme, in partnership with local banks. Minister Al-Mashat added that the government is in talks with the GCF and EBRD to unlock funding under the High Impact Programme for the Corporate Sector, a vehicle offering a mix of loans, grants, and blended finance solutions for industrial decarbonisation in developing economies. The platform also aims to facilitate factory upgrades, carbon removal technologies, and adoption of renewable energy—without placing fiscal pressure on the state budget. "We are building on NWFE's momentum to launch Egypt's first industrial-focused climate finance platform," Minister Al-Mashat said. "This aligns with our national strategy to boost export competitiveness and position Egypt as a green industrial hub." The two ministers said the platform would also support Egypt's compliance with international voluntary carbon markets and certification systems, increasingly seen as key tools for access to climate-conscious trade partners. Attribution: Amwal Al Ghad English
