Deputy Prime Minister for Industrial Development, and Minister of Industry and Transport, and Minister of Planning, Economic Development, and International Cooperation in an expanded coordination meeting to set a roadmap for the Carbon Border Adjustment Mechanism (CBAM)

H.E.  Lieutenant General Eng. Kamel Al-Wazir:

 

• Studying a proposal to establish a new country platform, similar to Egypt’s "NWFE" country platform, dedicated to mobilizing development financing and international grants to support green industrial transformation projects within the private sector's manufacturing industries.

 

• Forming a joint technical committee from the Ministries of Industry and Transport, including representatives from relevant entities, for direct coordination with the Ministry of Planning, Economic Development, and International Cooperation, and to follow up on the implementation of priority projects.

 

• The state is keen on taking serious steps to enhance the readiness of the Egyptian industrial sector to keep pace with international environmental changes, particularly in light of the application of the Carbon Border Adjustment Mechanism.

 

 

H.E. Dr. Rania A. Al-Mashat:

 

• After the success of "NWFE," we are coordinating with the Ministry of Industry to launch the first national platform to mobilize financing and technical support for the industrial sector.

 

• We are working to maximize the industrial private sector's benefit from international partnerships to increase the competitiveness of Egyptian exports and reduce carbon emissions in the industrial sector.

 

• Non-petroleum manufacturing industries are leading economic growth in the first nine months of the fiscal year 2024/2025, supported by economic and structural reform policies.

 

• The National Narrative for Economic Development “Advancing Economic Development in Egypt: Reforms for Growth, Jobs & Resilience” sets a unified vision for the Egyptian economy to transform towards tradable export sectors.

 

 

H.E. Lieutenant General Eng. Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, held a meeting with H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, to discuss coordination mechanisms between the two ministries to enhance the industrial sector's readiness to deal with the Carbon Border Adjustment Mechanism (CBAM).

 

This is part of the state's support for green industrial transformation and empowering export sectors to adapt to international environmental standards, ensuring the sustainability and competitiveness of Egyptian exports in global markets.

 

The meeting reviewed several joint issues, including the ministries' efforts to support the transition to low-emission industry through funding and technical programs in cooperation with international development partners.

 

The two sides discussed the latest developments in implementing the Sustainable Green Industries (GSI) program, which provides various funding, including development loans and non-refundable grants, to qualify Egyptian factories.

 

Additionally, ongoing cooperation with the European Bank for Reconstruction and Development (EBRD) to launch Egypt’s Country Platform for the "NWFE" program was discussed, which represents a strategic tool for attracting green investments in several sectors, most importantly the industrial sector, and facilitating access to development financing.

 

The meeting also addressed the proposal to establish a new country platform, similar to the "NWFE" platform, dedicated to mobilizing development financing and international grants to support green industrial transformation projects within the private sector's manufacturing industries.

 

The platform would act as a coordination mechanism between the Egyptian government and development partners to provide targeted financing for decarbonization projects, improve energy efficiency, and adopt clean production technologies. It is benefiting from successful international models, primarily the "NWFE" platform, which has proven effective in attracting climate investments and supporting the state's development priorities without imposing additional burdens on the general budget.

 

The meeting also touched on the opportunities available for Egypt to benefit from the Private Sector High Impact Program, one of the leading programs under the Green Climate Fund (GCF), managed by the European Bank for Reconstruction and Development (EBRD).

This program fosters private sector projects in developing countries to reduce industrial emissions and accelerate the transition to a green economy through a package of financing, including grants, development loans, and innovative investment tools.

 

The importance of this program stems from its alignment with the National Climate Change Strategy 2050 and Nationally Determined Contributions (NDCs), and does not impose any direct financial burdens on the state's general budget, making it one of the most important financing avenues that can be activated to support the transformation of Egyptian factories to low-carbon production systems and enhance their readiness to comply with new international environmental standards.

 

The Deputy Prime Minister for Industrial Development and Minister of Industry and Transport directed the formation of a joint technical committee from the Ministries of Industry and Transport, including representatives from relevant entities, for direct coordination with the Ministry of Planning, Economic Development, and International Cooperation, and to follow up on the implementation of priority projects. It will ensure integration between government initiatives and international funding platforms to achieve tangible results on the ground and enhance the readiness of national industry for the requirements of the next phase.

 

The Minister emphasized the importance of coordination with the Ministry of Foreign Affairs and relevant national entities to explore appropriate mechanisms for dealing with the voluntary carbon certificate system, in light of increasing international trends to adopt this mechanism as a tool for environmental compliance and supporting the transition of industries towards low-emission pathways.

 

He stressed the state's commitment to take serious steps to promote the readiness of the Egyptian industrial sector to keep pace with international environmental changes, particularly in light of the application of the Carbon Border Adjustment Mechanism.

 

He also affirmed the significance of supporting factories in transitioning towards green production, in coordination with all relevant ministries and in cooperation with development partners.

 

Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, pointed to the progress in international partnerships in the field of industrial development with various multilateral and bilateral development partners.

 

Dr. Al-Mahat reiterated that the non-oil manufacturing sector has been experiencing increasing growth since the implementation of economic reform decisions in March 2024. She noted that the sector has been leading economic growth rates since the last quarter of the fiscal year 2023/2024 and throughout the first nine months of the fiscal year 2024/2025, achieving growth of 7.1% in the first quarter, then 17.7% in the second quarter, and 16.3% in the third quarter.

She highlighted that non-petroleum manufacturing industries were the biggest contributors to growth rates in the third quarter of the fiscal year 2024/2025, by 1.9%.

 

Minister Al-Mahat added that in light of the state's keenness to foster the manufacturing sector and enable private sector investments in the industrial sector to increase exports and shift to tradable sectors, the Ministry of Planning, Economic Development, and International Cooperation is working to coordinate with various international institutions to provide technical support, grants, and development financing that reduce carbon emissions in industry and enhance the green transformation.

 

Dr. Al-Mahat pointed out that through the Sustainable Green Industries (GSI) program, development partners provide 271 million euros, equivalent to 16 billion Egyptian pounds, including approximately 1.2 billion pounds in grants, with the remaining part as development financing for the private sector through Egyptian banks to reduce pollution in the industrial sector, encourage the use of renewable energy, and develop sustainable industrial practices.

She also presented the status of the partnership with the Green Climate Fund (GCF) under the European Bank for Reconstruction and Development, to benefit from the development financing and grants provided by the fund to the private sector, which promotes Egypt's position as a strategic partner for the European Union in the field of green energy, supports competitiveness, and increases exports in line with national priorities.

 

Dr. Al-Mahat mentioned that in light of the success of the "NWFE" country platform and the international community's expansion in the concept of country platforms for mobilizing investments, the Ministry is working to coordinate with the Ministry of Industry, EBRD, and other development partners to launch the first country platform to mobilize financing and technical support for the industrial sector. This aligns with the "National Narrative for Economic Development" titled “Advancing Economic Development in Egypt: Reforms for Growth, Jobs & Resilience” to drive the state's efforts in localizing industry and encouraging local products. H.E. noted that the narrative sets a unified vision for the Egyptian economy to transform towards tradable sectors.

 

Dr. Al-Mahat highlighted Egypt's selection among 7 countries to benefit from the Industrial Decarbonization Funding Program under the Climate Investment Funds (CIF), which provides beneficiary countries with nearly one billion dollars in development financing for the industrial private sector.

 

She noted that the Ministry is continuing discussions with international partners to determine the extent of Egypt's benefit from these funds and technical support.

 

She reaffirmed the Ministry's commitment to continuing coordination with the Ministry of Industry to benefit from various available international partnerships to empower the industrial private sector and increase the competitiveness of Egyptian exports by reducing carbon emissions and boosting their ability to access the European market and other markets.