Egypt - The General Authority for Investment and Free Zones (GAFI) is mulling over collaboration with free zone investors to meet the environmental standards of European Union (EU), which will fully implement the Carbon Border Adjustment Mechanism (CBAM) in January 2026, as per a statement.

The CBAM requires imported products to either have zero carbon emissions or face additional financial costs based on the EU’s emissions trading system.

In a meeting held on September 26th, Hossam Heiba, CEO of GAFI, discussed with free zone investors ways to help them adapt to these new environmental standards to ensure the sustainability of Egypt’s exports to Europe.

Heiba emphasized that Egyptian products targeting European markets should increasingly rely on clean energy and environmentally friendly materials to remain globally competitive.

He also announced plans for the authority to double the reliance on renewable energy in free zones, in coordination with the EU and the advisory council representing investors from all free zones.

Moeover, Heiba added that the Egyptian government recognizes the vital role of free zones, which contribute around 22% of the country’s export revenues.

To meet rising local and international demand, Egypt plans to expand public free zones in the coming years, he pointed out.

© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).