Egypt is ramping up efforts to decarbonize its industrial sector ahead of the European Union’s Carbon Border Adjustment Mechanism (CBAM), securing €62.6 million in new financing to accelerate the shift toward green manufacturing and protect export competitiveness before the 2026 deadline.
Cutting emissions
At an orientation session on the Green Sustainable Industry (GSI) program and CBAM, Vice Prime Minister and Minister of Industry and Transport Kamel El-Wazir announced a package of measures aimed at helping Egyptian manufacturers meet rising global emissions standards. The event also saw the signing of a €53.8 million concessional loan and grant package from the French Development Agency and an €8.8 million EU-funded advisory grant, managed by the European Investment Bank, to support nationwide industrial decarbonization initiatives.
El-Wazir announced that Egypt will launch an industrial environmental registry in December 2025 to measure emissions and set quantitative reduction targets. An industrial energy registry will follow in early 2026, enabling the government to track energy consumption and the share of renewable sources such as solar, wind, hydrogen and green ammonia. These initiatives are being developed alongside ongoing national projects to reduce emissions from public transportation and freight.
The minister emphasized that Egypt’s Sustainable Development Vision 2030 aims to position the country as a regional hub for green manufacturing. The national industrial strategy for 2025–2030 targets raising the sector’s contribution to GDP from 14%to 20%, doubling industrial employment to seven million workers and increasing the share of green industries to 5% of GDP. Priority sectors include automotive, chemicals, pharmaceuticals, food processing and textiles.
Carbon costs
El-Wazir also warned that CBAM could impose carbon costs of between €7 billion and €29 billion on Egyptian exports—particularly steel, cement, fertilizers and aluminum—despite the country contributing only 0.6% of global emissions. He called for urgent collaboration between government, industry and development partners to mitigate the impact, including securing carbon credits and expanding access to green financing.
He praised the role of development partners in supporting Egypt’s green transition but urged the international community to expand assistance beyond technical studies and training, especially for private-sector manufacturers who will face direct CBAM compliance pressures.
Key quote
“Egypt is firmly committed to an irreversible path toward reducing carbon emissions and advancing sustainable green manufacturing,” El-Wazir said, underscoring the country’s determination to enhance industrial competitiveness and secure new export opportunities in global markets.
