Central Bank of Egypt Issues Directive to Support Exporters’ Environmental Compliance
Promoting Sustainable Finance
The Central Bank of Egypt (CBE) has issued a new directive to local banks, urging them to support
their exporting clients in aligning with international sustainability standards, particularly in the production
stages of their goods.
This initiative is part of CBE’s broader efforts to advance sustainable finance and combat climate change.
Complying with Global Carbon Standards
The directive highlights the importance of adhering to the Carbon Border Adjustment
Mechanism (CBAM), ensuring that carbon emissions during production are in line with
thresholds set by the European Union and the United Kingdom.
This alignment is crucial to facilitate uninterrupted market access for Egyptian exports.
Strengthening Financial Stability
As part of the new measures, banks are required to submit lists of their exporting
clients to the CBE.
This move serves as a proactive step to enhance the resilience of the banking sector and mitigate
risks related to international carbon border policies.
Empowering Green Exports
This directive is expected to support the transition of exporting businesses toward
producing environmentally compliant goods, boosting Egypt’s competitiveness in
international markets and supporting the country’s sustainable development goals.
A Strategic Step for Export Growth
By aligning with international environmental requirements, Egyptian exporters will be
better positioned to expand into global markets, contributing to national efforts to
increase exports and foster inclusive economic growth.
