Mohamed El-Shimy, Minister of Public Enterprises Sector, held an extensive meeting on Saturday to review ongoing efforts by state-affiliated companies to align with the European Union's Carbon Border Adjustment Mechanism (CBAM). The mechanism, designed to reduce industrial greenhouse gas emissions, also aims to safeguard the competitiveness of Egyptian exports in European markets. El-Shimy underscored the ministry's strong focus on the CBAM, which the EU plans to implement on imports from non-member states. He noted that the mechanism will have a direct impact on the competitiveness of Egyptian exports, particularly in high-emission industries such as aluminium, fertilisers, and cement. He explained that a comprehensive implementation plan has been developed in coordination with relevant authorities to ensure that companies are fully prepared to meet European requirements. This plan includes awareness programmes to familiarise employees with the technical and regulatory standards, as well as to highlight the potential implications for industrial performance and export operations. The minister stressed the importance of regular carbon emission monitoring and of enhancing environmental and production efficiency. He added that specialised task forces have been formed within companies to prepare carbon footprint reports in line with international standards. Additionally, workshops on carbon markets and green financing mechanisms are being organised to support Egypt's transition towards a green economy and sustainable development. As part of these efforts, Kima Aswan is implementing advanced projects aimed at reducing emissions and improving energy efficiency. These include the KIMA 3 project for nitric acid and ammonium nitrate production; a feasibility study to establish a solar power plant to meet part of its clean energy needs; and a project to capture surplus carbon dioxide through a new liquefaction unit for industrial use. The company is also conducting a comprehensive carbon footprint assessment and working to integrate older production lines with newer ones to enhance operational efficiency and reduce energy consumption. Similarly, Egyptalum continues to advance its decarbonisation plans and strengthen its export capacity. In March 2025, the company signed a long-term power purchase agreement with Norway's Scatec to establish a solar power plant that will supply the Nagaa Hammadi complex—one of Egypt's largest renewable energy projects in the industrial sector. Egyptalum has also obtained the ASI Performance Standard V3 certification, reaffirming its commitment to the highest environmental, social, and governance (ESG) standards. El-Shimy emphasised that these initiatives are part of the ministry's broader strategy aligned with Egypt's national vision for green transformation. The goal, he said, is to boost the competitiveness of state-owned companies' products in European and global markets, expand the use of renewable energy, reduce industrial emissions, and strengthen sustainability and environmental governance across the public enterprise sector.
