Four government entities and the banking sector began a comprehensive mapping of corporate carbon emissions to build a national database. The goal is to create the data infrastructure needed for Egyptian exports to meet tightening international environmental standards without imposing immediate fees on investors, four government and banking officials tell EnterpriseAM.

Why it matters: Egypt is racing against a 2027 deadline. Although there’s no formal agreement, the EU seems to be signaling a temporary exemption from the Carbon Border Adjustment Mechanism following a diplomatic push — but that grace period won’t last. By mapping emissions now, the state is doing the ground work to ensure they can prove their green credentials and aren’t taxed out of existence in European markets later this decade.

The Central Bank of Egypt has instructed banks to map clients in high-emission sectors as part of a move linking credit decisions to environmental compliance, two of our sources tell us. The move is part of a structural reform tied to Egypt’s IMF Resilience and Sustainability Facility and necessitates semiannual reports on corporate environmental commitments. The Financial Regulatory Authority is following suit by requiring non-banking financial institutions to disclose emissions and begin offsetting them.

What’s next? The government is working with German development agency GIZ to finalize the compliance framework. Once enough companies are mapped and certified, the path clears for the launch of a functional carbon market on the EGX, allowing firms to trade offsets and monetize their green transitions.

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