Egypt secures EU carbon tax reprieve until 2027

EXCLUSIVE- Egypt has received preliminary approval from the EU to exempt its exports from the Carbon Border Adjustment Mechanism (CBAM) until the end of 2027, two government sources tell EnterpriseAM. This diplomatic W following earlier lobbying for the move, reported on exclusively by EnterpriseAM last week, grants local energy-intensive manufacturers — think steel, fertilizer, aluminum, and cement sectors — a crucial two-year window to decarbonize before facing punitive border tariffs. Why this matters: Failure to comply with the carbon border tax or decarbonize at pace would cost local manufacturers an estimated USD 317 mn annually in carbon surcharges, according to Environment Ministry studies seen by EnterpriseAM. By pushing the deadline, Egypt is protecting the competitiveness of its exports in its largest market and prevents an imported inflationary spike that would have hit the local market if producers passed on compliance costs.