{"id":679267,"date":"2025-12-30T00:00:00","date_gmt":"2025-12-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?post_type=goinggreen&p=679267"},"modified":"2025-12-30T08:56:42","modified_gmt":"2025-12-30T08:56:42","slug":"govt-is-working-to-shield-industry-from-the-eus-carbon-tax","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/","title":{"rendered":"Gov\u2019t is working to shield industry from the EU\u2019s carbon tax"},"content":{"rendered":"

Egypt has officially requested a temporary exemption from the European <\/strong>Union\u2019s Carbon Border Adjustment Mechanism (CBAM)<\/strong>, a senior government official tells EnterpriseAM. The diplomatic push is the first half of a two-pronged strategy \u2014 while Cairo lobbies Brussels for a grace period, it is simultaneously finalizing a domestic carbon tax. This ensures that if Egyptian industry must pay for its emissions, the revenue stays in the Egyptian treasury rather than flowing into the EU\u2019s coffers.<\/p>\n

The move comes as the 2026 deadline \u2014 now only days away \u2014 for the definitive <\/strong>implementation of CBAM looms. <\/strong>The mechanism is designed to prevent carbon leakage by taxing high-emission imports into the EU like steel, aluminum, and cement. It threatens to fundamentally alter the competitive landscape for Egyptian exporters in their largest market.<\/p>\n

Why it matters <\/p>\n

The financial implications of the incoming carbon border tax are sizable <\/strong>\u2014 non-compliance or a failure to decarbonize quickly enough could cost local manufacturers USD 317 mn a year from the additional carbon price, according to studies by the Environment Ministry seen by EnterpriseAM.<\/p>\n

The <\/strong>iron and steel industry will be the worst hit<\/a><\/strong>, shouldering 74% of the total financial <\/strong>impact<\/strong> as it faces an estimated annual bill of USD 236 mn. The aluminum sector follows as the second most vulnerable, with a projected liability of USD 43 mn.<\/p>\n

And that\u2019s just the start:<\/strong> Other sectors could soon be affected as the EU decides which industries to include next and when. This comes as the bloc is working toward a 2030 goal of covering all sectors under the EU Emissions Trading System \u2014 an objective it has shown no sign of backing down from. Pundits expect polymers and organic chemicals will join the list in 2027, followed by downstream steel and aluminum goods like screws, bolts, and more complex parts in 2028.<\/p>\n

\n

If you can\u2019t beat them, tax first<\/p>\n

Should Brussels deny the exemption request \u2014 which it\u2019s likely to do to maintain WTO <\/strong>compliance \u2014 Egypt will bring out its own domestic <\/strong>carbon tax<\/strong>, we were told. A draft of the policy has already been put together in a rework of the tax policy document for 2025-2030 and is undergoing final review, our source told us.<\/p>\n

Under EU rules, any carbon price effectively paid in the country of origin can be <\/strong>deducted from the total amount <\/strong>due<\/strong> under the CBAM. <\/strong>\u201cWe have no intention of letting these revenues go to Brussels,\u201d the source said. \u201cIf the tax must be paid, it will be collected locally and funneled back into the green transition of our own industries.\u201d<\/p>\n

By collecting the tax at home, the Madbouly government would transform a capital <\/strong>outflow<\/strong> into a steady revenue stream. <\/strong>The revenue could theoretically be used to subsidize the same green tech upgrades (such as hydrogen-ready furnaces or advanced carbon filters) that the EU is demanding.<\/p>\n

Even with proceeds from a carbon border tax staying in Egypt, that doesn\u2019t solve the <\/strong>issue of inflation. <\/strong>Egypt\u2019s request for a grace period to transition gradually to a greener mode of production is in part driven by concerns that the cost of greening factory floors could lead to a spike in the cost of goods in the local market, our source said.<\/p>\n

Emission reduction technologies and special filters are expensive \u2014 especially when <\/strong>their installation is rushed<\/strong>.<\/strong> If the state forces a compressed timeline for these upgrades, manufacturers will inevitably pass the costs to the final consumer, which could have a big impact on our construction industry and infrastructure costs, according to our source.<\/p>\n

(** Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n","protected":false},"excerpt":{"rendered":"

The iron and steel industry is expected to shoulder 74% of the financial impact of the carbon tax<\/p>\n","protected":false},"featured_media":679268,"template":"","categories":[7266],"tags":[72,7229,7192,7109,368],"class_list":["post-679267","goinggreen","type-goinggreen","status-publish","has-post-thumbnail","hentry","category-going-green","tag-enterpriseam","tag-esg","tag-eu","tag-going-green","tag-sustainability","wpautop","entry"],"acf":{"mongo_id":"d6d523b2-1d24-4bdb-b76c-5f54bc53ed5b","order":"12","is_powered_by":false,"story_type":"2","photo_url":"https:\/\/ent.news\/2023\/2\/699.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt prepares plan B to shield industry from the EU\u2019s Carbon Border Adjustment Mechanism starting in the new year","related_issue":[679246],"teaser":"The iron and steel industry is expected to shoulder 74% of the financial impact of the carbon tax"},"yoast_head":"\nGov\u2019t is working to shield industry from the EU\u2019s carbon tax - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gov\u2019t is working to shield industry from the EU\u2019s carbon tax\" \/>\n<meta property=\"og:description\" content=\"The iron and steel industry is expected to shoulder 74% of the financial impact of the carbon tax\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-30T08:56:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/699.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/\",\"name\":\"Gov\u2019t is working to shield industry from the EU\u2019s carbon tax - EnterpriseAM Egypt\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/699.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2025-12-30T00:00:00+00:00\",\"dateModified\":\"2025-12-30T08:56:42+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/699.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/699.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/egypt\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"GoingGreen\",\"item\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Gov\u2019t is working to shield industry from the EU\u2019s carbon tax\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#website\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/\",\"name\":\"EnterpriseAM\",\"description\":\"The State of the Nation\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/egypt\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\",\"name\":\"EnterpriseAM\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/240894.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/240894.svg\",\"caption\":\"EnterpriseAM\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Gov\u2019t is working to shield industry from the EU\u2019s carbon tax - EnterpriseAM Egypt","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/","og_locale":"en_US","og_type":"article","og_title":"Gov\u2019t is working to shield industry from the EU\u2019s carbon tax","og_description":"The iron and steel industry is expected to shoulder 74% of the financial impact of the carbon tax","og_url":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/","og_site_name":"EnterpriseAM Egypt","article_modified_time":"2025-12-30T08:56:42+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2023\/2\/699.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/","url":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/","name":"Gov\u2019t is working to shield industry from the EU\u2019s carbon tax - EnterpriseAM Egypt","isPartOf":{"@id":"https:\/\/enterpriseam.com\/egypt\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2023\/2\/699.jpg?fit=%2C&ssl=1","datePublished":"2025-12-30T00:00:00+00:00","dateModified":"2025-12-30T08:56:42+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2023\/2\/699.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2023\/2\/699.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/govt-is-working-to-shield-industry-from-the-eus-carbon-tax\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/egypt\/"},{"@type":"ListItem","position":2,"name":"GoingGreen","item":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/"},{"@type":"ListItem","position":3,"name":"Gov\u2019t is working to shield industry from the EU\u2019s carbon tax"}]},{"@type":"WebSite","@id":"https:\/\/enterpriseam.com\/egypt\/#website","url":"https:\/\/enterpriseam.com\/egypt\/","name":"EnterpriseAM","description":"The State of the Nation","publisher":{"@id":"https:\/\/enterpriseam.com\/egypt\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/enterpriseam.com\/egypt\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/enterpriseam.com\/egypt\/#organization","name":"EnterpriseAM","url":"https:\/\/enterpriseam.com\/egypt\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/","url":"https:\/\/ent.news\/internal\/240894.svg","contentUrl":"https:\/\/ent.news\/internal\/240894.svg","caption":"EnterpriseAM"},"image":{"@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/"}}]}},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/goinggreen\/679267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/goinggreen"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/goinggreen"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/679246"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/679268"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=679267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=679267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=679267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}