GAFI explores CBAM’s impact on Egyptian economy

Updated 9/11/2025 10:35:00 AM

Arab Finance: The General Authority for Investment and Free Zones (GAFI) reviewed the impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) on the Egyptian economy, particularly the iron and steel sector, as per a statement.

The GAFI hosted a conference to present the World Bank's report assessing the impact of the CBAM on the Egyptian economy, which witnessed broad participation from representatives of government agencies.

The Ministry of Industry, the General Authority for Export and Import Control (GOEIC), the Ministry of Planning, Economic Development and International Cooperation, the Egyptian Environmental Affairs Agency (EEAA), and others gathered in the event.

Dahlia El-Hawary‏, Vice Chairperson of the GAFI, stated that the authority is holding a series of conferences related to environmental sustainability to discuss the implementation of the CBAM.

It also explored its implications for Egyptian exports, investment strategies, and local production, while imposing new requirements on the private sector.

According to a World Bank report, the expected impact on GDP will amount to hundreds of millions of dollars, with several sectors facing pressures due to their increased contribution to carbon emissions.

Meanwhile, Egypt's fertilizer exports to the EU are expected to witness a significant increase due to the low carbon emissions rate of this industry.

The authority developed an internal action plan to promote sustainable projects, in line with the objectives of the ministerial group tasked with examining the impact of applying this mechanism.