Egypt outlines roadmap to advance green transition via CBMA policy
Updated 7/16/2025 3:13:00 PMArab Finance: The Egyptian government rolled out plans to develop a roadmap for implementing the Carbon Border Adjustment Mechanism (CBAM) policy to advance its green transition, according to a statement.
Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir and Minister of Planning and Economic Development, and International Cooperation Rania Al-Mashat discussed joint efforts to support transition to low-emission industries.
This goal will be achieved through financing and technical programs in cooperation with international development partners.
The two sides reviewed the latest developments in implementing the Green Sustainable Industries (GSI) program, which provides various financing options, including soft loans and non-refundable grants, to rehabilitate Egyptian factories.
They also touched upon the ongoing cooperation with the European Bank for Reconstruction and Development (EBRD) to launch the "NWFE" platform, which represents a strategic tool for attracting green investments in several sectors, most notably the industrial sector.
The meeting also discussed a proposal to establish a new national platform similar to the NWFE program, aimed at mobilizing soft financing and international grants to support green industrial transformation projects within the private sector's manufacturing industries.
Additionally, the two ministers explored opportunities available in Egypt to benefit from the High-Impact Private Sector Program, one of the flagship programs of the Green Climate Fund (GCF) and managed by the EBRD.
This initiative aims to support private sector projects in developing countries to cut industrial emissions and accelerate the transition to a green economy through a financing package that includes grants, soft loans, and innovative investment tools.
El-Wazir and Al-Mashat highlighted the importance of this program, which aligns with the National Climate Change Strategy 2050 and the Nationally Determined Contributions (NDCs), noting that it does not impose any direct financial burdens on the state budget.
On his part, El-Wazir directed the formation of a joint technical committee to monitor the implementation of key projects and ensure integration between government initiatives and international financing platforms to achieve results.
Meanwhile, Al-Mashat outlined the results of international partnerships in the field of industrial development with various multilateral and bilateral development partners.
She stressed that the non-petroleum manufacturing sector witnessed increasing development since the implementation of economic reform measures in March 2024.
She indicated that the sector has been leading economic growth rates since the fourth quarter (Q4) of fiscal year (FY) 2023/2024 and throughout the first nine months of FY 2024/2025. It achieved a growth of 7.1% in Q1, followed by 17.7% in Q2, and 16.3% in Q3.
Non-petroleum manufacturing industries contributed the most to growth rates in Q3 of FY2024/2025 at 1.9%, according to Al-Mashat.
Through the GSI Program, development partners provided €271 million (EGP 16 billion), including approximately EGP 1.2 billion in grants.
The remaining portion in soft financing for the private sector through Egyptian banks will be directed to reduce pollution in the industrial sector, encourage the use of renewable energy, and develop sustainable industrial practices.
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