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Public Business Minister reviews carbon compliance to boost exports

Businessmen Team news 25 October 2025 09:29 PM
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Public Business Minister reviews carbon compliance to boost exports

Engineer Mohamed Shimi, Minister of Public Business Sector, held an expanded meeting to review the efforts of affiliated companies to comply with the European Carbon Border Adjustment Mechanism (CBAM). The mechanism aims to reduce industrial gas emissions and enhance the competitiveness of Egyptian exports.

The Minister said that the Ministry gives top priority to this mechanism, which the European Union will apply to its imports. He added that it will have a direct impact on the competitiveness of Egyptian exports, especially in emission-intensive industries such as aluminum, fertilizers, and cement. He explained that a comprehensive implementation plan has been developed in cooperation with the relevant authorities to ensure that affiliated companies are ready to meet European requirements. He noted that the plan includes awareness programs to familiarize employees with technical and regulatory standards and their expected impact on industrial and export performance.

Shimi highlighted the importance of regularly measuring carbon emissions and improving both environmental and production efficiency. He pointed to the formation of specialized working groups within companies to prepare carbon footprint reports in line with international standards. He said that workshops are being organized on carbon markets and green financing mechanisms in support of the state’s shift toward a green economy and sustainable development.

KIMA Fertilizers Company in Aswan continues to implement advanced projects to reduce emissions and improve energy efficiency. These include the KIMA 3 project for the production of nitric acid and ammonium nitrate. The company is also studying the establishment of a solar power plant to meet part of its electricity needs from clean energy. It is also developing a project to use excess carbon dioxide by constructing a modern liquefaction unit for industrial use. A comprehensive carbon footprint assessment is underway, and old production lines are being linked to new ones to improve operational efficiency and reduce energy consumption.

Egypt Aluminum Company continues to implement its plans to reduce its carbon footprint and strengthen its export capacity. In March 2025, the company signed a long-term power purchase agreement with Norwegian company Scatec to build a solar power plant to supply clean energy to the Nagaa Hammadi complex. The project is one of the largest renewable energy initiatives in Egypt’s industrial sector. The company also obtained the ASI Performance Standard V3 certification, confirming its commitment to the highest standards of environmental, social, and governance performance.

Shimi said that these efforts are part of the Ministry’s strategy aligned with the state’s vision for a green transformation. The strategy aims to enhance the competitiveness of affiliated companies’ products in European and global markets. It also seeks to expand the use of renewable energy, reduce industrial emissions, and strengthen sustainability and environmental governance standards.

The meeting was attended by Mohamed Hassouna, Advisor to the Minister, Engineer Mohamed El Saadawy, Executive Managing Director of the Metallurgical Industries Holding Company, Chemist Saad Helal, Managing Director of the Chemical Industries Holding Company, Dr. Mahmoud Agour, Managing Director of Egypt Aluminum Company, Engineer Sameh Talaat, Managing Director of KIMA, and Engineer Magdy Tawfik, Chairman of Al Nahda Cement Company.