Two consecutive workshops on the Carbon Border Adjustment Mechanism (CBAM) took place in Cairo on December 6th and 7th, 2023 delivered by Ricardo Energy and Environment and Environics on behalf of the European Bank for Reconstruction and Development (EBRD). These workshops were specifically designed for the Cement and Nitrogenous Fertilizers sectors, aiming to raise awareness among local stakeholders on the implementation of the CBAM regulations and to qualitatively discuss the potential impact on exports to the EU.
Both workshops followed a similar structure, commencing with presentations covering an overview of the CBAM system and an introduction to reporting. These presentations were succeeded by an in-depth case study presentation, which delved into the relevant sector in Egypt. The case study explored the sector characteristics, goods covered by CBAM, methods for determining embedded emissions, decarbonization options, CBAM’s implications, and potential impacts on exports of specific products to the EU. Subsequently, Question and Answer (Q&A) sessions provided an opportunity for stakeholders to engage in discussions and seek clarifications.
Due to the significant proportion of exports from the fertilizer sector, particularly to the EU, the CBAM’s impact on this sector is more immediate and pertinent. Consequently, the workshop for this sector was structured to encourage increased interaction and discussion, with ample time allocated for these purposes. For your reference, Appendix A contains the agendas for both workshops.
Both workshops saw strong participation from representatives of the targeted sectors, as well as governmental agencies responsible for CBAM introduction and/or sectoral decarbonization mandates. Appendix B includes a record of attendees for both workshop sessions.
This report offers a comprehensive summary of the key points raised and discussed during these workshops. To avoid redundancy, common themes relevant to both workshops are consolidated in Section 2, while sector-specific points are elaborated upon separately in Section 3. The report concludes with Sections 4 and 5, outlining support requirements and specifying follow-up actions, respectively.
The aim and objectives for the project which will inform the approach were unchanged from the technical proposal
- Enhance awareness among local stakeholders about the imminent implementation of CBAM regulation and its potential impacts on exporters of specific products to the EU.
- Facilitate knowledge sharing with affected sectors’ local stakeholders, ensuring they comprehend the administration and mechanisms of the CBAM.
- Assist companies in preparing for their CBAM reporting obligations during the transitional phase, which commenced in October 2023. Additionally, foster discussions on mitigating strategies to reduce the CBAM price in the post-transitional period.