The Central Bank of Egypt (CBE) has issued a directive to all banks encouraging them to actively support exporters in aligning their production processes with international environmental standards.
According to an official statement released by the CBE, this move is part of Egypt’s broader commitment to sustainable finance and its alignment with global efforts to combat climate change. The directive underscores the growing importance of meeting international sustainability benchmarks—particularly carbon-related regulations increasingly imposed by key trading partners such as the European Union and the United Kingdom.
Supporting Exporters Amid Carbon Border Regulations
The CBE directive focuses specifically on helping exporters comply with carbon border adjustment mechanisms. These mechanisms aim to reduce carbon leakage by ensuring that imported goods meet the same environmental standards as domestically produced ones in Europe and the UK.
To facilitate this transition, banks will now be expected to:
- Provide exporters with the necessary financial and technical support to adapt production processes and reduce carbon emissions.
- Promote investments in cleaner technologies and climate-aligned infrastructure.
- Submit detailed lists of exporting clients to the Central Bank in an effort to enhance transparency and preemptively manage potential regulatory risks related to non-compliance.
This initiative is not only designed to maintain Egypt’s competitiveness in global markets, but also to safeguard financial system stability by proactively addressing future trade and compliance risks.
A Strategic Shift Toward Green Trade
By helping exporters produce environmentally compliant goods, Egypt is seeking to expand its access to foreign markets while ensuring long-term economic sustainability. This shift aligns with the government’s wider agenda to modernize trade policy, attract green investment, and position Egypt as a reliable partner in the global green economy.
The CBE’s statement emphasized that the policy will reinforce Egypt’s export growth trajectory and support exporters in navigating a rapidly evolving regulatory landscape.
The new policy also complements ongoing government efforts to promote sustainable industrial development, in line with Egypt’s Vision 2030 and its international climate commitments under the Paris Agreement.
