International Consultant Mohamed El-Lethey Proposes 9 Comprehensive Strategies for Egypt to Navigate EU CBAM and Boost Export Competitiveness in 2026
The European Union’s Carbon Border Adjustment Mechanism (CBAM) entered full enforcement on Thursday, placing carbon tariffs on Egypt’s major exports to the bloc—worth $14 billion in the 2024/25 fiscal year. According to Mohamed El-Lethey, International Consultant in Quality and Sustainability, these measures specifically target critical sectors including steel, cement, aluminium, fertilisers, electricity, and hydrogen. Tariffs track EU Emissions Trading System (ETS) weekly prices of €85-100 per tonne of CO2 equivalent, demanding rigorous emissions monitoring, reporting, and verification (MRV) from Egyptian exporters to maintain market access.
El-Lethey noted that the mechanism—aimed at preventing carbon leakage—affects industries making up 33% of GDP that rely on natural gas for 81% of energy. “Without action, losses could hit $1.2-1.8 billion annually from 8-12% cost increases,” he told reporters, citing aluminium (78% EU-directed, $1.8 billion), cement (1.2 million tonnes a year as EU’s No. 2 supplier) and fertilisers ($4.5 billion last year toward $11 billion target).
Such pressures threaten jobs in production centres like Nag Hammadi, Helwan and 10th of Ramadan City, with ripple effects on supply chains, El-Lethey added. But he pointed to upsides: domestic carbon taxes creditable against CBAM could cut net costs 25%, while opening $3-5 billion green financing from World Bank ($700 million pledged) and EBRD, leveraging Benban solar park (1.8 GW) and Gulf of Suez wind farms.
El-Lethey outlined nine interconnected strategies—four government pillars supporting five industry tactics under MRV frameworks—for full 2026 compliance. “This creates a virtuous cycle of savings, resilience and leadership in MENA green exports, up 25% by 2030,” he said.
Government pillars
He called for immediate EU negotiations to extend transitional periods to 2028 and launch a national carbon market covering 50 million tonnes of emissions yearly, generating $800 million savings. A parallel $15 billion push would raise renewables to 42% of energy mix by 2030 via Suez expansions, reducing industrial emissions 25%.
Capacity building would train 10,000 engineers in MRV, with 35% tax incentives for 300 priority factories. A $2 billion sovereign green fund at 4% interest rates would mobilise FDI and public-private partnerships for retrofits.
Industry tactics
El-Lethey detailed rapid CCS rollout in cement and steel for 22% emissions cuts within 18 months, financed by green banks. Firms should shift to blue hydrogen from gas reserves, cutting costs 15% and enabling CBAM certificates.
Supply chain alliances with solar farms would shrink footprints 18%, he said, while diversifying 20% of exports to Asia and Africa via Environmental Product Declaration (EPD) and ISO 14067 certifications draws $2 billion FDI. Advanced digital MRV platforms would ensure real-time reporting, avoiding €100/tonne penalties.
“CBAM shifts from threat to opportunity when executed cohesively,” El-Lethey said. “Egypt can redefine its industry, protect livelihoods and lead the global green economy.”
Mohamed El-Lethey is an International Quality and Sustainability Consultant with extensive expertise in developing and auditing management systems across industries. As a Certified Lead Auditor in ISO 42001, 9001, 27001, 14001, 45001, and 50001 standards and a Six Sigma Black Belt, he aids organizations in achieving world-class standards in quality, environmental performance, and sustainable business practices.
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