EU Diplomat Praises Egypt’s Green Vision in Face of Carbon Pricing Reforms

In a recent post on LinkedIn, Ambassador Angelina Eichhorst, Head of the European Union Delegation to Egypt, addressed growing interest across Egypt in the Carbon Border Adjustment Mechanism (CBAM)—a key part of the European Union’s climate policy framework.

The mechanism, often misunderstood in business and policymaking circles, is designed to ensure that goods entering the EU reflect the same carbon pricing standards applied within the bloc. Contrary to misconceptions, CBAM is not about protecting European industries—it is about maintaining Europe’s climate ambition and preventing carbon leakage.

Ambassador Eichhorst clarified that CBAM ensures that carbon-intensive imports—such as steel, cement, aluminium, and fertilizers—carry the same carbon cost as domestic EU products. The goal is to create a level playing field, particularly when EU producers are competing with industries in countries with less stringent carbon policies. She emphasized that this is critical not only for fair competition, but also to prevent European companies from relocating carbon-intensive production abroad.

The implementation of CBAM is being phased in gradually. The transition phase runs through the end of 2025, during which importers must report emissions without financial obligations. From 2026 onward, the financial component of CBAM will gradually take effect until 2034, as free allowances under the EU Emissions Trading System (ETS) are phased out.

Ambassador Eichhorst acknowledged that when the EU first introduced the mechanism, many stakeholders across partner countries—including Egypt—had concerns about the financial and operational impact. Over time, however, greater understanding has been achieved, particularly through dialogue and technical cooperation.

She praised Egypt’s commitment to low-carbon economic practices, describing it as an impressive step that will help reduce the country's long-term exposure to CBAM. Reducing carbon emissions is already a clear priority for the Egyptian government, and this aligns closely with the EU’s climate trajectory.

The Ambassador also noted the shared understanding among Egyptian public and private sector actors that climate change is a global challenge requiring international cooperation. The concept of carbon leakage—where companies relocate to avoid stricter regulations or are replaced by higher-emission imports—is being taken seriously in Egypt, where industrial stakeholders increasingly recognize CBAM as a real driver for emission reductions in sectors like manufacturing and the power grid.

To support this understanding, the EU Delegation in Cairo has been engaging at a technical level with Egyptian institutions, offering workshops and training through global carbon pricing initiatives, online seminars, and direct dialogue. The European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD) has also played a direct role, organizing webinars and roundtables, including a notable visit to Egypt in 2024—the first by DG TAXUD to any trading partner to present and explain CBAM in person.

The European Union is committed to working with Egypt to avoid any unintended consequences of the mechanism on Egyptian development. Eichhorst reiterated that CBAM is not about penalizing partners, but about encouraging cleaner industrial practices globally. This cooperation will continue through ongoing education, diplomacy, and technical support.