The Central Bank of Egypt (CBE) has recently made a significant announcement regarding establishing green banks. These banks specialize in providing low-cost financing for clean and renewable energy projects and initiatives that aim to improve environmental quality.
As per the provisions of the Central Bank Law and the new banking system, the green banks will be licensed to operate.
The CBE’s financial stability report highlights the importance of sustainable financing in achieving sustainable development objectives, including promoting balanced growth, reducing poverty, enhancing living conditions, and addressing climate change. The CBE firmly supports the state’s efforts to provide sustainable financing, considered a low-risk and beneficial means of maintaining the financial system’s stability.
Moreover, sustainable financing creates investment opportunities and attracts foreign currency by appealing to a new segment of investors interested in environmental and social issues.
To integrate environmental, social, and governance elements into the operations and decisions of the Egyptian banking sector, the CBE has issued guiding principles for sustainable finance. These principles are aligned with Egypt’s Vision 2030 and the global Sustainable Development Goals. Furthermore, the CBE has launched various initiatives to promote sustainable financing by lending funds to banks at low interest rates to finance development projects.
Currently, the Egyptian banking market is taking the first step towards sustainable finance by building the capabilities of the banking sector through training programs and papers. The CBE has directed banks to measure the carbon footprint of their internal activities as a first step towards implementing sustainability principles in the bank’s internal activities and work.
The Central Bank of Egypt (CBE) recently announced that it will allow the establishment of green banks to support sustainable development and environmental protection. Green banks specialize in providing low-cost financing for clean and renewable energy projects and initiatives that aim to improve environmental quality. These banks will operate under the provisions of the Central Bank Law and the new banking system, allowing new types of banks to be licensed.
The CBE’s financial stability report emphasizes that sustainable financing is crucial for achieving sustainable development goals, including creating balanced growth, reducing poverty, improving living conditions, and addressing climate change. The CBE supports the state’s efforts to provide sustainable financing, considered low-risk and beneficial for the financial system’s stability. Sustainable financing also enhances investment opportunities and attracts foreign currency by appealing to a new segment of investors interested in environmental and social issues.
To integrate environmental, social, and governance elements into the operations and decisions of the Egyptian banking sector, the CBE issued guiding principles for sustainable finance. These principles align with Egypt’s Vision 2030 and the global Sustainable Development Goals. Additionally, the CBE has launched various initiatives to promote sustainable financing by lending funds to banks at low interest rates to finance development projects.
The Egyptian banking market is currently implementing the first step of the road map for sustainable finance, which focuses on building the capabilities of the banking sector through training programs and papers. The CBE has also directed banks to measure the carbon footprint of their internal activities as a first step towards applying sustainability principles to the bank’s internal activities and work.
