Egypt's Prime Minister Mostafa Madbouly has reviewed the latest developments regarding the Carbon Border Adjustment Mechanism (CBAM), which aims to enhance the competitiveness of Egypt's national exports by aligning them with international environmental standards. During the meeting, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel Al-Wazir presented a detailed update on the implementation of the CBAM general plan, which was approved by the Cabinet in December 2024. He noted that work is currently underway to finalise sectoral plans and establish specific targets and timelines. This includes comprehensive studies of global markets for the products of targeted sectors, supported by marketing studies in collaboration with foreign trade offices and export councils. Al-Wazir highlighted ongoing efforts to identify priority economic sectors for carbon footprint reduction in the first phase, focusing on improving energy efficiency within the industrial sector. He also detailed the criteria being set to select exporting companies and factories that will receive financial support to modernise and green their production lines. A guide is being prepared to familiarise exporters and investors with the environmental standards required for exports, aiming to attract green financing for eligible companies. Additionally, an environmental registry for industrial firms is being developed to support monitoring and compliance efforts. Al-Wazir described a range of measures currently being implemented to cut emissions in the industrial sector, which form the backbone of the CBAM plan. These include carbon footprint and emissions measurement reports, monitoring, reporting and verification (MRV) systems, verification and certification procedures, and support mechanisms to help companies reduce emissions. He noted that the Egyptian Organization for Standardization and Quality has been accredited by the National Accreditation Council, which is recognised by the European co-operation for Accreditation (EA), qualifying it as an official verification and certification body. As part of the CBAM roadmap, Al-Wazir explained, work is progressing on developing an electronic system to measure pollutants and record carbon emissions, along with establishing a national MRV system. The plan also focuses on raising environmental awareness among companies and directing their investments towards lowering carbon footprints, in line with sustainability and environmental governance standards. Further measures include providing technical support and green financing to industrial firms, helping them enter new export markets and strengthen their global competitiveness. Al-Wazir also announced the formation of a permanent committee within the General Authority for Investment and Free Zones to oversee efforts to reduce carbon emissions. This committee is responsible for designing awareness programmes for businesses on carbon-related challenges and opportunities, exploring investment in renewable energy, and conducting field visits to assess the readiness of factories and production lines. In a related meeting on Monday, Madbouly reviewed broader efforts to support and localise industry in Egypt. He reaffirmed the government's commitment to developing national industry as a cornerstone of sustainable economic development. This includes improving the business climate, simplifying procedures for local and foreign investors, fostering innovation and technological adoption in industry, and implementing plans to deepen domestic manufacturing across various sectors. Cabinet Spokesperson Mohamed Al-Homsany stated that the meeting discussed a series of measures to support industry and address existing challenges. It also covered plans to create an integrated industrial environment that enhances production efficiency and quality, and aligns with international competitiveness standards. Al-Homsany added that discussions also touched on ongoing efforts to localise and deepen national industry to achieve economic growth, greater self-sufficiency, and reduced reliance on imports, in line with the goals of Egypt's National Industry Strategy 2030. The meeting further addressed government initiatives aimed at attracting investment into the industrial sector across multiple fields.
