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| Egypt CBAM |
Egypt has intensified dialogue with the European Union over the CBAM impact on Egyptian exports and broader green transformation. During the Global Gateway Forum in Brussels, Planning Minister Rania Al-Mashat met with EU Commissioner Jessica Rosvall to outline Cairo’s decarbonization strategy. The discussion focused on increasing industrial energy efficiency, attracting green finance, and ensuring Egypt’s export competitiveness under the new Carbon Border Adjustment Mechanism (CBAM).
Green Funding and Industrial Policy Alignment Underway
Minister Al-Mashat confirmed that Egypt’s new national economic strategy includes CBAM impact mitigation policies. These align with broader efforts to green the economy through the Green Sustainable Industries (GSI) program, which has already secured €271 million in financing. The funds target industrial pollution reduction, renewable energy deployment, and sustainable manufacturing practices.
Moreover, Egypt is working with the EBRD and the Green Climate Fund (GCF) to attract grants and concessional loans for the private sector. As a result, Egypt aims to reinforce its role as a strategic green energy partner for the EU while preserving exports of steel and industrial goods.
Steel Sector Incentives Target Export and Emissions Goals
The Egyptian government recently introduced new incentives for the local production of cold-rolled, galvanized, and pre-painted steel products. These measures aim to reduce project lead times, cut upfront investment costs, and mitigate investor risk. In parallel, the NWFE platform was presented as a national climate investment initiative targeting the water, food, and energy sectors, which will support Egypt’s Climate Change Strategy 2050.
ScrapInsight Commentary
Egypt’s response to CBAM illustrates how emerging economies adapt industrial and export strategies under carbon-linked trade regimes. The focus on value-added steel products and green manufacturing suggests long-term positioning for low-carbon trade compliance. However, the success of such policies will depend on EU recognition of these reforms and effective access to climate finance.
