CBE instructs banks to support exporters in meeting global environmental standards
The Central Bank of Egypt (CBE) has issued a directive requiring banks to support their exporting clients in meeting global environmental and sustainability standards during the production of goods intended for export.
These standards include compliance with the Carbon Border Adjustment Mechanism (CBAM), a key policy adopted by the European Union and the United Kingdom. The CBAM seeks to align carbon emissions from industrial production with emissions benchmarks in these markets, ensuring fair competition and supporting global climate goals. This alignment is expected to facilitate the continued access of Egyptian exports to EU and UK markets.
Under the new directive, banks are required to submit to the CBE a list of their exporting clients. This measure serves as a proactive step to enhance financial sector resilience and mitigate potential risks linked to the implementation of CBAM regulations in major export destinations.
The CBE’s instruction also supports the broader transition of bank clients toward producing environmentally compliant goods that meet global standards. This is seen as a key pillar in Egypt’s strategy to expand its exports, diversify market access, and foster sustainable economic development.
