The Central Bank of Egypt has issued a directive requiring banks to support their exporting clients in complying with international sustainability standards in the production of exported goods, including the Carbon Border Adjustment Mechanism (CBAM), and to provide relevant information to the central bank. The directive highlights standards intended to align carbon emissions from production processes with benchmarks applied by the European Union and the United Kingdom to facilitate the entry of Egyptian goods into foreign markets. Banks must notify the Central Bank of Egypt with a list of their exporting clients as a step to manage potential risks to banking stability linked to the implementation of CBAM in those jurisdictions.
Central Bank of Egypt 2025-07-07
Central Bank of Egypt directs banks to support exporters’ Carbon Border Adjustment Mechanism compliance and report exporting clients
The Central Bank of Egypt has mandated banks to assist exporting clients in meeting international sustainability standards, including the Carbon Border Adjustment Mechanism (CBAM). This directive aims to align carbon emissions with EU and UK benchmarks to ease market entry for Egyptian goods. Banks are required to report their exporting clients to the Central Bank to manage potential banking stability risks associated with CBAM.