Egypt and EU discuss CBAM’s impact on exports and green transformation

Cairo is working on programs to reduce emissions and attract green investments

Egyptian Minister of Planning Rania Al-Mashat met with EU Commissioner for Environment, Water, and Circular Economy Jessica Rosvall in Brussels to discuss the implementation of the Cross-Border Carbon Adjustment Mechanism (CBAM). The talks took place within the framework of the Global Gateway forum, according to DailyNews.

The main focus was on measures being implemented by the Egyptian government to increase export competitiveness, industrial energy efficiency, and promote green transformation under the new mechanism.

Al-Mashat emphasized the long-standing economic partnership with the EU and confirmed that Egypt’s new national economic strategy, focused on productive sectors, also takes into account policies to mitigate the impact of CBAM on exports.

The ministry is coordinating with international institutions to attract technical assistance, grants, and concessional financing to reduce emissions and support the green economy. In particular, under the Green Sustainable Industries (GSI) program, partners have already provided €271 million to reduce industrial pollution, develop renewable energy, and introduce sustainable manufacturing practices.

The minister also noted the cooperation with the EBRD and the Green Climate Fund (GCF), which help attract grants and concessional loans for the private sector. According to her, this strengthens Egypt’s position as a strategic partner of the EU in the field of green energy and promotes the competitiveness of exports.

The NWFE national platform, aimed at mobilizing climate investments in the water, food, and energy sectors, was presented separately. Its implementation should accelerate the implementation of Egypt’s Climate Change Strategy until 2050.

It should be recalled that the Egyptian government recently announced a new package of incentives to support and expand local production of rolled products – cold-rolled, galvanized, and pre-painted steel sheets and coils. The incentive package is designed to reduce project completion times, lower initial costs, and mitigate risks for investors.