2025-06-15

A periodic book on June 15, 2025 regarding banks' approval of exporters according to the mechanism of carbon border modification

The Central Bank of Egypt (CBE) is preparing the banking sector for the implementation of the Carbon Border Adjustment Mechanism (CBAM) by the European Union and the United Kingdom. This mechanism imposes additional taxes on products exported to these regions if they do not comply with carbon emission policies. The CBE is asking banks to assess the potential impact on their portfolios, particularly for companies in sectors like steel, aluminum, cement, fertilizers, and hydrogen. Banks are required to submit semi-annual reports to the CBE's sustainability department to monitor and manage the associated risks, starting from the second half of 2026.

Egypt

Central Bank of Egypt

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