Latest news with #CBAM
Zawya
3 days ago
- Business
- Zawya
Egypt outlines roadmap to advance green transition via CBMA policy
Arab Finance: The Egyptian government rolled out plans to develop a roadmap for implementing the Carbon Border Adjustment Mechanism (CBAM) policy to advance its green transition, according to a statement. Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir and Minister of Planning and Economic Development, and International Cooperation Rania Al-Mashat discussed joint efforts to support transition to low-emission industries. This goal will be achieved through financing and technical programs in cooperation with international development partners. The two sides reviewed the latest developments in implementing the Green Sustainable Industries (GSI) program, which provides various financing options, including soft loans and non-refundable grants, to rehabilitate Egyptian factories. They also touched upon the ongoing cooperation with the European Bank for Reconstruction and Development (EBRD) to launch the "NWFE" platform, which represents a strategic tool for attracting green investments in several sectors, most notably the industrial sector. The meeting also discussed a proposal to establish a new national platform similar to the NWFE program, aimed at mobilizing soft financing and international grants to support green industrial transformation projects within the private sector's manufacturing industries. Additionally, the two ministers explored opportunities available in Egypt to benefit from the High-Impact Private Sector Program, one of the flagship programs of the Green Climate Fund (GCF) and managed by the EBRD. This initiative aims to support private sector projects in developing countries to cut industrial emissions and accelerate the transition to a green economy through a financing package that includes grants, soft loans, and innovative investment tools. El-Wazir and Al-Mashat highlighted the importance of this program, which aligns with the National Climate Change Strategy 2050 and the Nationally Determined Contributions (NDCs), noting that it does not impose any direct financial burdens on the state budget. On his part, El-Wazir directed the formation of a joint technical committee to monitor the implementation of key projects and ensure integration between government initiatives and international financing platforms to achieve results. Meanwhile, Al-Mashat outlined the results of international partnerships in the field of industrial development with various multilateral and bilateral development partners. She stressed that the non-petroleum manufacturing sector witnessed increasing development since the implementation of economic reform measures in March 2024. She indicated that the sector has been leading economic growth rates since the fourth quarter (Q4) of fiscal year (FY) 2023/2024 and throughout the first nine months of FY 2024/2025. It achieved a growth of 7.1% in Q1, followed by 17.7% in Q2, and 16.3% in Q3. Non-petroleum manufacturing industries contributed the most to growth rates in Q3 of FY2024/2025 at 1.9%, according to Al-Mashat. Through the GSI Program, development partners provided €271 million (EGP 16 billion), including approximately EGP 1.2 billion in grants. The remaining portion in soft financing for the private sector through Egyptian banks will be directed to reduce pollution in the industrial sector, encourage the use of renewable energy, and develop sustainable industrial practices. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Daily News Egypt
3 days ago
- Business
- Daily News Egypt
Egypt considers launching national platform to mobilise green financing for private-sector industrial transformation
Egypt's Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel Al-Wazir, has met with Minister of Planning and International Cooperation, Rania Al-Mashat, to coordinate efforts to prepare Egypt's industrial sector for the European Union's Carbon Border Adjustment Mechanism (CBAM) and advance green transformation. The meeting focused on ongoing cooperation for low-emission industry programmes, particularly the Green Sustainable Industries (GSI) initiative, and collaboration with the European Bank for Reconstruction and Development (EBRD) under the NWFE platform. Discussions also explored a proposal to establish a new national platform—modelled after NWFE—to mobilise concessional financing and international grants to support private-sector green industrial projects centred on decarbonisation, energy efficiency, and clean technologies. In addition, the ministers discussed opportunities for Egypt to benefit from the Green Climate Fund's (GCF) High Impact Programme for the Private Sector, a flagship initiative managed by the EBRD. The programme aims to help private-sector projects in developing countries reduce industrial emissions and accelerate the transition to a green economy through a mix of grants, concessional loans, and innovative financing instruments. The initiative aligns closely with Egypt's National Climate Change Strategy 2050 and its Nationally Determined Contributions (NDCs), while placing no direct financial burden on the state budget. It represents a key potential route to finance the decarbonisation of Egyptian factories and help them meet emerging global environmental standards. To advance these efforts, Al-Wazir directed the formation of a joint technical committee—including representatives from the Ministries of Industry and Transport—to coordinate directly with the Ministry of Planning and International Cooperation. This committee will oversee the implementation of priority projects, ensure alignment with international financing platforms, and enhance the readiness of Egypt's industrial sector for new environmental requirements. Al-Wazir also stressed the importance of coordinating with the Egyptian Ministry of Foreign Affairs and other national institutions to engage in voluntary carbon credit systems, supporting Egypt's shift to low-emission industry ahead of CBAM enforcement. He reaffirmed the government's commitment to helping factories transition to green production through partnerships with development partners and other ministries. For her part, Minister of Planning and Economic Development Rania Al-Mashat reviewed recent progress in Egypt's international partnerships supporting industrial development. She highlighted that the non-oil manufacturing sector has led GDP growth since the March 2024 economic reforms, posting growth rates of 7.1%, 17.7%, and 16.3% across the first three quarters of FY 2024/2025 and contributing 1.9% to GDP growth in Q3 alone. Al-Mashat emphasised the government's focus on strengthening the manufacturing sector to boost exports and expand tradable industries. The ministry is working closely with international development partners to secure technical support, grants, and concessional financing to reduce carbon emissions and accelerate industrial transformation. She noted the GSI programme, which provides approximately €271m (around EGP 16bn)—including EGP 1.2bn in grants—to promote pollution reduction, renewable energy use, and sustainable industrial practices. She also pointed to ongoing cooperation with the Green Climate Fund to access concessional finance for private-sector projects, reinforcing Egypt's role as a strategic green energy partner to the EU. Additionally, Al-Mashat highlighted Egypt's selection among seven countries to participate in the Climate Investment Funds' (CIF) Industrial Decarbonization Program, which offers nearly $1bn in concessional finance for the private industrial sector. Egypt is currently in discussions to determine the size of its share. Al-Mashat reaffirmed continued coordination with the Ministry of Industry to leverage international partnerships that empower private industry, cut carbon emissions, and boost export competitiveness—particularly in accessing European and global markets.
Indian Express
5 days ago
- Business
- Indian Express
India, EU close 7 out of 23 chapters in trade deal; last round to take place in September
As trade negotiations pick up pace amid US tariff threats, India and the EU have managed to close two more chapters in the latest round of talks and narrow gaps in services, a government official said on Tuesday. The two sides have now agreed on seven out of 23 chapters in the ongoing negotiations for what could be the largest trade agreement India has ever entered into. Satya Srinivas, special secretary in the Department of Commerce, said the last (12th) round of talks concluded last week in Brussels. 'We have exchanged our offers on services and non-services… there were discussions on that. We also discussed key interests in market access related to goods as well… The next round of talks (will be held) in the first week of September,' Srinivas said. However, the Carbon Border Adjustment Mechanism (CBAM) is not part of the EU trade negotiations, Hervé Delphin, EU Ambassador to India, told The Indian Express last month. 'I have come to discover that CBAM is one of the best-known acronyms in India. First, CBAM is not a trade measure. It is not part of trade and the FTA. It's about compliance with our climate agenda to accelerate decarbonisation,' he said. On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal an FTA deal by year-end. Special Secretary in the Department of Commerce Rajesh Agrawal said that the 10th and 11th rounds of talks are likely to be held in August here and in October in Malaysia. 'We are engaged in the negotiations. Nine rounds of talks have been concluded so far… The progress so far has been chequered — not what it could have been — but the good part is that we are moving forward on many aspects, especially on customs and trade facilitation,' Agrawal said. Further, he said talks are also progressing on issues like technical cooperation, SPS (sanitary and phytosanitary) and TBT (technical barriers to trade) collaborations. 'We hope there is going to be one physical round in August and… another in October in Malaysia. So we hope that in these two rounds, we should be able to make good progress and try to have some kind of conclusion when the ASEAN-India Summit takes place at the end of October. The endeavour is in that direction. Let's see how much we can achieve,' he said. The review of the agreement is a long-standing demand of domestic industry, and India is looking forward to an upgraded pact that will address the current asymmetries in bilateral trade and make trade more balanced and sustainable. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Time of India
6 days ago
- Business
- Time of India
CBAM may cost Indian steel exporters €551 million by 2034: Report
The imposition of European Union's Carbon Border Adjustment Mechanism (CBAM) could increase the cost of Indian steel manufacturers to €551 million by 2034, potentially reducing their global competitiveness, according to a latest report by Grant Thornton Bharat. The CBAM entered its reporting phase in Q3 2024 and is set to impose financial obligations from January 2026. It is an import duty on a product manufactured in a country that has more lax climate rules than the EU. According to the report, flat-rolled iron and steel products, which make up nearly 80 per cent of India's steel exports to the EU, are expected to be among the most affected. Readiness gap between Indian and EU producers The report highlights a gap between Indian and EU steel production emission levels, suggesting a potential financial burden for Indian exporters unless emissions are aligned with EU standards. While India has begun its decarbonisation efforts through schemes like the Carbon Credit Trading Scheme, DEEP, ADEETIE, and Green Steel Certification, the report notes that the transition remains resource-intensive—especially for micro, small and medium enterprises (MSMEs). 'CBAM poses a significant challenge for auto component exporters, especially MSMEs reliant on fossil fuel-based energy. To remain competitive, we must accelerate the shift to cleaner energy sources and adopt sustainable manufacturing practices. A targeted approach is critical for a smooth and equitable adaptation,' said Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat. Support services and policy collaboration To assist Indian businesses, Grant Thornton Bharat has introduced a range of CBAM-aligned services. These include emission mapping, financial impact assessments, supplier engagement, and green steel certification support. The firm is also empanelled with the Ministry of Power and the National Institute of Secondary Steel Technology (NISST) to facilitate industry-wide preparedness. Amit Kumar, Partner and Climate Ecosystem Leader, Grant Thornton Bharat, stated, 'The EU's CBAM represents a pivotal shift in global trade, urging industries to align with low-carbon benchmarks. For Indian exporters, this transition demands financial and technological support. Collaboration between the EU, Indian policymakers, and the private sector is crucial.' As the deadline for full CBAM enforcement approaches, the report calls for coordinated action between government, industry, and international partners to ensure a just and sustainable transition for Indian exporters.
Economic Times
11-07-2025
- Business
- Economic Times
Greet Europe with Car'bon' Jour: Turning CBAM from trade barrier to green opportunity for India
Go green, and steel up on others Climate change is influencing international trade, with EU and Britain leading efforts to introduce carbon taxes on imports under a Carbon Border Adjustment Mechanism (CBAM). While the concept is not new, it takes on fresh urgency in the context of ongoing India-EU FTA negotiations. With a mutually agreed timeline of finalising the deal by end-2025, this is an opportune moment to examine potential implications of CBAM for India's merchandise trade and manufacturing - and how policy could possibly turn this challenge into an opportunity for growth, development and green January 1, 2026, the EU is set to impose full compliance and carbon costs on six carbon-intensive imports: iron and steel, aluminium, electricity, cement, fertilisers, and hydrogen. India exports about 27% of its total iron, steel and aluminium exports to the EU, valued at around $8 bn. These, according to GTRI, are estimated to become 20-35% costlier in the EU market due to the proposed carbon tax. As CBAM expands to other sectors - in line with the EU's overarching goal of net-zero emissions by 2050 - it will likely impact other Indian exports such as minerals, machinery, chemicals, auto parts, pharmaceuticals and textiles. It is, therefore, viewed as a serious non-tariff barrier for India. While the official objective is to eliminate the cost advantage that foreign producers enjoy over EU-based green manufacturers, the measure will increase the cost of imports from developing countries while generating significant revenue for the has raised concerns about CBAM, advocating for exemptions - especially for MSMEs - and calling for more equitable alternatives to 'unilaterally imposed standards'. At the same time, FTA is important for India, offering access to the EU's 27-member market of nearly 450 mn consumers. Key sectors like textiles, leather, pharmaceuticals, automobiles, IT services and agriculture are expected to benefit from increased exports. The agreement could also boost foreign investor confidence and facilitate access to advanced technologies, strengthening India's domestic manufacturing ecosystem and supporting globally competitive exports and employment the other hand, FTA offers the EU access to India's large, fast-growing market, and supports efforts to diversify supply chains in a geopolitically sensitive environment. European companies are expected to invest in manufacturing linkages, fostering ancillary industries and joint ventures - particularly with MSMEs. India-EU cooperation on climate goals could also contribute to global progress toward net-zero India and other developing countries view CBAM as WTO-incompatible and unfair, especially as the EU's methodology for calculating embedded emissions remains under scrutiny. During CBAM transition phase, Indian exporters of carbon-intensive goods are using default values published by European Commission as benchmark respond effectively, India must develop scientific, sector-specific tools for reliable measurement of embedded emissions based on actual data. It must also establish a domestic carbon-pricing mechanism to assign a financial value to the carbon content of goods. With the EU recently considering carbon credits from overseas projects as part of its climate strategy, India could tap into this opportunity - once institutional mechanisms for pricing and trading carbon emissions are in place.A long-term strategy is essential for a successful green transition, which will hinge on access to advanced technologies, climate finance and incentives for the private sector to adopt clean energy, and produce green steel, cement and other one suggestion to neutralise CBAM is to introduce a domestic carbon tax that could be offset against the EU's CBAM under a double-taxation avoidance framework. Besides aligning with India's trade interests and climate commitments, a phased domestic carbon tax could also serve as a revenue source for financing green addressing the CBAM barrier is critical for India to realise the benefits of FTA, it also presents a broader strategic opportunity. This could be a defining moment for India to pilot sustainable manufacturing on a wider scale, aligning with its national emissions reduction India can emerge as a key voice for the developing world in climate governance. It could spearhead a consortium of like-minded nations to promote tech transfer, establish a climate fund to support decarbonisation - especially in hard-to-abate sectors - and advocate for phased, equitable implementation of CBAM-like policies. The writer is former secretary, ministry of labour and employment, GoI. (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Why this one from 'Dirty Dozen', now in Vedanta fold, is again in a mess The deluge that's cooling oil prices despite the Iran conflict Can Indian IT protect its high valuation as AI takes centre stage? 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