Environmental Taxes in Egypt


Under the Mediterranean Commission for Sustainable Development, Blue requested a study of the environmental instruments in Egypt. This was to be one of a series of studies addressing the Southern and Eastern Mediterranean Countries (SEMC), with the aim of designing replicable analytical frameworks and methodologies.

Environics was commissioned to conduct this study in Egypt.

Environics prepared and submitted a report entitled “Environmental Taxes in SEMC – The Case of Egypt.” The report studied the environmental policy in Egypt and traced the development of its framework since the 1970s. The report identified the main principles for environmental management and surveyed the economic instruments that were applied in Egypt, as well as the instruments that were investigated for use.

A detailed assessment of two economic instruments, selected according to their performance, was undertaken. These instruments were the ones integrated with a national spent oil collection and recycling scheme, and a product charge scheme for cement industry. The description and objective of each of the two instruments was provided, and the institutional set-up, the involved parties, and their roles were detailed. The designs and performances of the instruments were analyzed to identify shortcomings, required actions, and lessons learnt.

Based on the analyses, the report presented a series of recommendations for instrument design and implementation. A number of instruments were recommended for future investigation, including incentives for the conversion of vehicles to natural gas, surcharge applied on industrial effluent discharge to the public sewage network in Greater Cairo, and grants provided through the German Bank of Reconstruction to industrial facilities for the wastewater treatment and reduction.

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