Written by: Basant El-Farmawy
The Egyptian state attaches great importance to the issue of reducing carbon emissions as a fundamental part of its strategy for transitioning toward a green economy and achieving Egypt's Vision 2030. This issue is no longer just an international environmental commitment, but has become a key driver for attracting foreign investment and enhancing the competitiveness of Egyptian exports in global markets that apply strict carbon standards.
The Strategic Framework for Emission Reduction
Work on this file is based on the National Climate Change Strategy 2050, which has defined a path for reducing emissions in the energy, transport, industry, and waste sectors. The government relies on the principle of shared responsibilities between the state, the private sector, and civil society, with a focus on providing measurement and transparency tools to track progress, with the aim of reducing reliance on fossil fuels, which account for more than 80% of the current electricity mix.
Organized Voluntary Carbon Market
In August 2024, the Financial Regulatory Authority launched the first organized voluntary carbon market in Africa, serving as an official platform for trading emission reduction certificates. This mechanism allows companies that implement environmentally friendly projects, such as improving energy efficiency or waste recycling, to obtain certified certificates for every ton of carbon dioxide avoided, and then sell them to other companies wishing to offset their carbon footprint.
Expanding Renewable Energy Projects
The state aims to increase the share of renewable energy to 42% of the electricity mix by 2030, and to more than 60% by 2040. These efforts include massive projects such as the Benban Solar Park in Aswan with a capacity of 1465 MW, the new Abydos 2 project, in addition to wind farms in Gabal El-Zeit and the Gulf of Suez, and green hydrogen projects in the Suez Canal Economic Zone.
Carbon Capture Technologies and Export Support
The state is adopting Carbon Capture, Utilization, and Storage (CCUS) technologies to address emissions from heavy industries such as cement, iron and steel, and petrochemicals. The Ministry of Industry and Trade is also working to qualify more than 100 exporting companies to deal with the European Union's Carbon Border Adjustment Mechanism (CBAM), ensuring the compliance of Egyptian products with international standards and opening new markets.
