The CBE noted that this direction aligns with Egypt’s national strategy to enhance exports and promote sustainable economic development.
The move also aligns with the CBE’s broader commitment to advancing sustainable finance and responding to the growing global focus on climate action.
The directive stressed the importance of compliance with the European Union’s Carbon Border Adjustment Mechanism (CBAM) and related regulations in the United Kingdom.
CBAM is a climate policy tool developed by the European Union (EU) to prevent carbon leakage and encourage cleaner industrial production globally.
These frameworks aim to regulate the carbon intensity of imported goods, setting benchmarks that exporters must meet to ensure continued access to key markets.
Egypt has an ambitious plan to raise its exports to $115.8 billion annually by 2030, up from roughly $40 billion recorded in 2024.
Per the CBE's directive, banks are required to submit detailed lists of their exporting clients to the central bank.
This proactive measure aims to enhance financial sector resilience and mitigate potential risks arising from the enforcement of carbon-related regulations in foreign markets.
The CBE's initiative also aims to facilitate exporters' smooth transition toward environmentally responsible production practices.
By aligning with global sustainability standards, Egyptian exporters will be better positioned to enhance their competitiveness, expand their market reach, and contribute to the country's long-term economic and environmental goals.
This directive marks another step in Egypt’s efforts to integrate climate considerations into its financial and trade policies, reinforcing its role in the global green economy.
As a climate action effort, CBAM aims to put a carbon price on imports of certain goods into the EU, ensure that EU climate efforts are not undermined by companies moving production to countries with less strict environmental regulations, and create a level playing field between EU producers — who already pay for their carbon emissions under the EU Emissions Trading System (ETS) — and foreign producers.
CBAM applies to imported goods in carbon-intensive sectors, including iron and steel, cement, aluminium, fertilizers, hydrogen, and electricity.
The transitional phase of applying this system began in October 2023 (reporting-only period, no payments yet).
Full implementation is planned for 2026, when importers will start paying for the carbon content of their goods.
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