The Central Bank of Egypt (CBE) has initiated the preparatory procedures for issuing the Sustainable Finance Taxonomy, as part of Egypt’s ongoing efforts to strengthen sustainable finance practices and support the transition toward a green and sustainable economy.
The new taxonomy is designed to provide accurate and certified classifications for sustainable economic activities, helping investors identify projects that meet environmental and social sustainability standards. The framework is expected to enhance investor confidence and create a more attractive environment for green and sustainable investments in Egypt.
Technical Working Group Formed with Participation of Key Government Entities
In preparation for issuing the Sustainable Finance Taxonomy, the Central Bank of Egypt has formed a specialized technical working group that includes representatives from several ministries and regulatory authorities.
The group comprises representatives from the Ministry of Foreign Affairs, International Cooperation and Egyptian Expatriates, the Ministry of Finance, the Ministry of Local Development and Environment, the Ministry of Investment and Foreign Trade, in addition to the Financial Regulatory Authority (FRA).
The working group aims to unify efforts among relevant institutions, exchange technical expertise, and provide recommendations during the preparation stages of the Sustainable Finance Taxonomy to ensure alignment with national priorities and international sustainability standards.
First Meeting Discusses Global Experiences and Implementation Challenges
The technical working group held its first meeting at the Central Bank of Egypt’s headquarters, with the participation of representatives from the concerned ministries and authorities.
During the meeting, participants reviewed the Central Bank’s vision regarding the upcoming Sustainable Finance Taxonomy, along with international experiences from various countries, global standards applied in sustainable finance, and the challenges and opportunities associated with implementing such frameworks.
The meeting concluded with an agreement to begin the executive procedures immediately, while emphasizing the importance of continuous coordination and cooperation among all members of the working group.
Sustainable Finance Taxonomy Expected to Boost Funding Opportunities and Improve Risk Management
The Sustainable Finance Taxonomy is expected to contribute to increasing international financing directed toward sustainable projects, while supporting Egypt’s efforts to expand green investments and promote responsible economic growth.
The framework will also enhance risk management efficiency in project financing by providing clear classifications and guidelines to identify environmental and social risks, enabling financial institutions and investors to make more informed investment decisions.
