Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), engaged with investors from free zones in Egypt to deliberate strategies supporting their alignment with new European environmental standards, thereby securing the sustainability of Egypt's export growth.
Recognizing the pivotal role of these zones, contributing approximately 22 percent to Egypt's export revenues, the Egyptian government plans to escalate the establishment of public free zones in the upcoming years.
The European Union (EU) is set to enforce the Carbon Border Adjustment Mechanism (CBAM) from January 2026, compelling exporters to adhere to zero carbon emission standards or face financial penalties based on the EU's emissions trading system.
Emphasizing the necessity for Egyptian goods targeting the European market to embrace clean energy and environmentally friendly practices to retain their competitive edge globally, Heiba disclosed GAFI's intent to enhance renewable energy utilization in these zones.
This initiative will be executed in collaboration with the EU and the Free Zones Advisory Council, comprising representatives from investors in these regions.
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