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.