Chapter Zero is an association that focuses on helping board members of companies address the challenges and opportunities of climate change and sustainability. By adopting best practices in governance and policies, organizations can achieve sustainable growth and attract investments in green sectors. Daily News Egypt interviewed Manal Hassan, board advisor for Chapter Zero, to learn more about the association's goals and activities in Egypt. What are the main objectives of Chapter Zero in Egypt? Chapter Zero aims to empower directors to integrate sustainability into their organizations' strategies and operations. We provide them with the necessary knowledge and tools to effectively navigate the risks and opportunities associated with climate change. We also support them in developing and reporting on their progress towards achieving the Sustainable Growth Index (SGI), which measures their contribution to a more sustainable future. Why is climate change important for business? Climate change is a global challenge that affects every aspect of our lives. It poses significant threats to the environment, the economy, and the society. Businesses have a responsibility to take action to reduce their carbon footprint and align their activities with the goals of the Paris Agreement, which aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels. By doing so, businesses can not only mitigate the negative impacts of climate change, but also seize the opportunities of the green transition, such as accessing green finance, enhancing their reputation, and increasing their competitiveness. When and how will Chapter Zero begin its activities in Egypt? Chapter Zero launched its activities in Egypt in September 2023, with a series of seminars, webinars, and online and on-ground activations. We will introduce the concept and benefits of SGI to various economic sectors in Egypt, and encourage them to report their progress annually. We will also provide training and education to board members and executives on how to develop and implement their sustainability and decarbonization strategy, to achieve carbon neutrality and reach net zero by 2050. How will Chapter Zero support the process of reducing carbon emissions in Egypt? Chapter Zero will support the process of reducing carbon emissions in Egypt by implementing various strategies and initiatives. For example, we will promote the adoption of energy-efficient technologies and practices to reduce the energy consumption and emissions of industries and businesses. We will also advocate for the use of renewable energy sources, such as solar, wind, and hydropower, to replace fossil fuel-based electricity generation. Furthermore, we will encourage the development of sustainable transportation systems, such as electric vehicles, public transport, and active modes of transportation, to reduce emissions in the transport sector. Chapter Zero will collaborate with the government to increase incentives for carbon emission reduction measures, such as renewable energy feed-in tariffs. Proper waste management practices will also be supported. By vigorously engaging in these efforts and collaborating with stakeholders across different sectors, the association aims to contribute significantly to Egypt's sustainability plans and government targets for carbon emission reduction. How can Egypt succeed in exporting to low-carbon markets? Egypt has a great potential to export to low-carbon markets, as it has invested significantly in renewable energy projects, such as the Benban Solar Plant, wind farms, nuclear plants, and green hydrogen ventures. These projects help reduce the dependence on fossil fuel imports and create new opportunities for green investors. However, Egypt also faces some challenges, such as the high cost of renewable energy, the lack of adequate infrastructure, and competition from other countries. To overcome these challenges, Egypt needs to foster a supportive environment that encourages innovation, efficiency, and sustainability across various sectors and industries. By doing so, Egypt can enhance its prospects for success in exporting to low-carbon markets and reducing its carbon footprint. What are some of the solutions available to reduce global emissions? There are many solutions available to reduce global emissions across different sectors and industries. For example, in the agriculture sector, sustainable farming practices and precision agriculture technologies can help minimize the emissions associated with food production and consumption. In the digital sector, digitization and digital transformation can help reduce the emissions associated with energy consumption and transportation. For instance, remote work solutions, virtual meetings, and cloud computing can enable more efficient and flexible operations with less carbon footprint. Moreover, entrepreneurs and innovators can also play a significant role in driving emission reduction efforts by creating new products and services that promote green lifestyles and behaviors. For example, Uber has revolutionized transportation by offering shared rides and electric vehicles. Many businesses have introduced flexible workspace solutions that reduce the need for traditional office spaces and commuting-related emissions. Fintech companies have contributed by enabling digital banking services that reduce paper waste and energy consumption associated with physical bank branches. What kind of policies and regulations are currently impacting business decisions? Businesses are increasingly influenced by policies and regulations that aim to address the environmental, social, and governance (ESG) aspects of their activities. These policies and regulations can have positive or negative impacts on their performance, reputation, and competitiveness. Some of the policies and regulations that are currently impacting business decisions are: * Carbon Border Tax: This is a mechanism that imposes a tax on the carbon emissions associated with imported goods. The European Union has recently proposed a Carbon Border Adjustment Mechanism (CBAM) that will apply to certain sectors and products from 2026. This mechanism aims to prevent carbon leakage and ensure a level playing field for domestic and foreign producers. * Carbon Tax: This is a tax that is levied on the carbon content of fuels or the carbon emissions of activities. The objective of this tax is to incentivize businesses to reduce their emissions by making it more costly to emit carbon. Several countries have implemented or are planning to implement carbon taxes, such as Canada, Sweden, and Singapore. What are the challenges and opportunities of green financing and sustainable development funds? Green financing and sustainable development funds are important sources of funding for businesses that want to pursue sustainability and decarbonization goals. However, many businesses still face challenges in accessing these funds due to the lack of eligibility criteria, the high cost of implementing green strategies, and the trade-off between sustainability and profitability. To overcome these challenges, there is a need for more grants and funds that can support the transition toward sustainability, especially in emerging markets. These funds can provide the necessary resources and financial assistance to help businesses achieve their sustainability goals by 2030, as well as create new opportunities for innovation, growth, and competitiveness. How was Chapter Zero established? Chapter Zero is an association that was founded by Ahmed Elsewedy, the President and CEO of Elswedy Electric, during the COP27 conference in Sharm El-Sheikh in 2023. Ahmed Elsewedy serves as the chairperson and the primary founder of Chapter Zero Egypt, which is the first chapter of the association in the Middle East and Africa region.
