Egypt is laying the groundwork for a nationwide green labeling system for plastic products, starting with a pilot phase targeting packaging and plastic bags as part of a broader push to transition toward a circular economy, according to a statement from the Environment Ministry. The certification will be granted to manufacturers that redesign products to be recyclable, incorporate recycled inputs, or use biodegradable materials.

Over time, the system is expected to expand across all industries, Waste Management Regulatory Authority (WMRA) head Yasser Abdallah tells EnterpriseAM. Regulations are nearing completion ahead of a wider rollout under the Environmental Law framework, with technical guidelines and an electronic registration system for producers also in development, according to the ministry.

Why this matters: The government is treating plastics as a contained test case to pilot compliance with green manufacturing and sustainable production standards before scaling across sectors, Abdallah says. The initial phase will focus on commonly used products such as plastic bags and packaging materials, which will need to meet specific environmental criteria to reduce pollution. Authorities are already working with a number of factories in preparation for the rollout, with plans to expand the system gradually to other industries as part of a broader transition toward green manufacturing.

The system is also being designed with exports in mind. Discussions around the green label are aligned with Egypt’s preparations for the EU’s Carbon Border Adjustment Mechanism (CBAM), we’re told. The aim is to help Egyptian manufacturers reduce emissions and meet evolving international standards, strengthening their competitiveness in export markets that are increasingly prioritizing sustainability.

The policy shift signals a broader rethink, but industry players say recycling alone won’t solve the problem. While Egypt has made progress in expanding recycling infrastructure and raising awareness over the past five years, the current approach still focuses too heavily on downstream solutions, Banlastic Egypt co-founder and R&D head Manar Ramadan tells us. In her view, the more effective strategy would be to reduce plastic use at the source through stronger policies such as bans or fees, which remain largely absent. She adds that recycling should not be the primary focus, as it comes later in the waste management hierarchy after reduction and reuse.

Recycling demand is rising, but it is still uneven. Interest in recycled plastic products has grown, particularly among corporates and consumers, Ramadan told us. Companies are increasingly requesting recycled materials for certain products, and consumers are becoming more open to using them. However, she notes that this demand is not always consistent and is sometimes driven by trends rather than long-term behavioral change. While awareness has improved, it has yet to translate into stable, widespread demand across the industry, she added.

A green label could help — if it’s enforced. The certification is expected to raise awareness and make environmentally friendly products more visible in the market, which could support the growth of eco-friendly businesses. However, the effectiveness of the system will depend on proper monitoring and enforcement. Without clear oversight, there is a risk that the label could be misused, undermining its credibility, according to Ramadan.

The economics remain a core constraint. Recycling continues to face structural challenges that limit its scalability. Ramadan explains that the process is often more expensive than using virgin raw materials due to higher energy and processing costs, making it less attractive for manufacturers. This cost imbalance creates a disincentive for businesses to adopt recycled inputs, even as awareness and demand begin to grow.

The informal sector is both a constraint and a critical part of the system. Egypt’s waste management ecosystem relies heavily on informal waste collectors, who handle a significant share of recyclable materials. Ramadan says that while formalizing the system is important from a policy perspective, excluding these actors could weaken overall efficiency. Integrating them into a more structured system would require not only operational inclusion but also improved social protections such as health ins. and better working conditions. She adds that the scale of waste generated in Egypt makes it difficult for formal systems alone to manage collection and sorting, reinforcing the need for a hybrid approach that builds on existing informal networks rather than replacing them.

Egypt is moving beyond expanding recycling capacity toward influencing how products enter the market in the first place. The green label could help create a clearer signal for both producers and consumers, but its impact will depend on enforcement, cost dynamics, and how effectively it accounts for the realities of Egypt’s existing waste system.

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