The Central Bank of Egypt (CBE) has launched the preparatory process for developing a Sustainable Finance Taxonomy, forming an inter-ministerial technical working group to support the national drive toward sustainable finance and align Egypt’s financial sector with international best practices.
The taxonomy aims to establish a unified framework for classifying sustainable economic activities and providing accurate, reliable, and verified data on projects that meet environmental and social sustainability standards. By creating clear classifications, the initiative is expected to enhance investor confidence and foster a more attractive environment for green and sustainable investments.
To support the initiative, the CBE has established a technical working group comprising 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, and the Financial Regulatory Authority (FRA).
The group will coordinate efforts among the relevant ministries and authorities, enabling members to exchange expertise, provide technical feedback, and contribute to the development of the Sustainable Finance Taxonomy ahead of its official issuance by the CBE.
The working group held its inaugural meeting at the CBE’s headquarters, bringing together representatives from all participating ministries and authorities.
During the meeting, the CBE presented its vision for the proposed taxonomy, while participants reviewed international experiences in developing sustainable finance taxonomies, applicable global standards, and the key opportunities and challenges associated with implementation.
The meeting concluded with an agreement to begin the executive phase of the initiative immediately, with participants stressing the importance of close coordination among all members throughout the development process.
The CBE said the Sustainable Finance Taxonomy is expected to facilitate greater access to international green financing, improve the efficiency of risk management in project financing by providing clear classifications and guidance for identifying environmental and social risks, and support the continued expansion of sustainable finance in Egypt.
