Environment Opportunities in Egypt

An Expert's View about Green Construction in Egypt

Last updated: 14 Mar 2011

The market for environmental goods and services in Egypt is promising and is expected to increase in parallel with the improvement of the economy.

Sector briefing Environment Opportunities in Egypt Why Egypt? Egypt lies in the north-eastern corner of Africa, and is strategically located as a major trade and crossroads destination between Europe, the Middle East, Africa and west and south Asia. It is the centre of a region of 800 million people. Egypt?s north coast is on the Mediterranean, while the Red Sea bounds the eastern coast. It is an attractive location for foreign companies to expand their business in the region and has a stable economic, political and infrastructure environment. Egypt?s ambitious development and industrialisation activities and high population ?The Egyptian government (80 million in 2009, expected to reach 100 allocated EGP993 million for million by 2020) with density along the Nile Valley and Delta, have all resulted in a heavy environmental protection in burden on the country?s natural resources. This the 2008/2009 state budget, adversely affected public health as well as the up from EGP412 million in environment in the form of water scarcity, declining water quality, land degradation, 2005/2006. Of this, EGP566 increasing air pollution, untreated urban and million is earmarked for the hazardous waste disposal, and poorly protected purchase of goods and cultural and natural heritage. services.? The Egyptian government has shown its The majority of funding, however, comes from determination to tackle these environmental international donors such as the World Bank, issues by reinforcing its legal and institutional United Nations Development Programme, USA, framework and increasing its budget for EU, Japan, Germany, Denmark, Netherlands, expenditure on environmental projects. Most of and several other countries. the government expenditure goes towards funding of environmental equipment, various The World Bank's Second pollution Abatement environment programmes, capacity building Project (SPAP) made Egypt the first country to and technical assistance to polluting industries. receive large resources for pollution control from the World Bank and its partners. Ever- Egyptian regulations increasingly put pressure increasing funds from international donors and on businesses to comply with environmental the financial assistance they have provided laws. Businesses exporting to the EU, North have also contributed to boosting opportunities America, and other developed regions, where in the Egyptian environment sector. compliance with environmental standards can constitute an explicit non-tariff barrier, are also The market for environmental goods and urged to prove their compliance with services in Egypt is promising and is expected international environmental standards. UK Trade & Investment Sector briefing: Environment opportunities in Egypt Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © to increase in parallel with the improvement of ? Law 48/1982, protecting all surface waters the economy. There is real scope for the and groundwater introduction of new technologies and ? Law 4/1994 (environment law) established environmental solutions. the Egyptian Environmental Affairs Agency (EEAA) and created an intricate web of The Egyptian Minister of State for standards and monitoring, record-keeping, Environmental Affairs, Eng. Maged George, has and enforcement mechanisms with respect been implementing serious, and increasingly to air pollution, hazardous and solid waste successful, steps for abating all types of management, and environmental impact pollution, but these are still considered in its assessments (EIAs). embryonic stage. Hence opportunities are ? Law 9/2009, an update to the prominent numerous. Law 4 of 1994. Environmental Policy Formulation The establishment of a real Egyptian International Donors: Environmental institutional and legal Egypt has seen various aid programmes from framework was in 1994, with the issuance of international donors over the last few decades, the Environment Protection Law 4/1994. The such as the World Bank, Kreditanstalt fur Law established the Egyptian Environment Weideraufbau (KfW), Danish Int?l Development Affairs Agency (EEAA) followed by Ministry Agency (DANIDA), European Investment Bank of State for Environmental Affairs (MSEA) (EIB), Canadian Int?l Development Agency in 1997. EEAA continued to be the Ministry's (CIDA), United States Agency for Int?l execution arm; its function and responsibilities Development (USAID), and the governments of include all environmental management areas. Germany and Japan. Environmental Protection Fund (EPF) These donors? programs helped the Egyptian EPF was established in 1995, with the objective Government establish several instruments to ?to stimulate environmental investments and reduce pollution, create public awareness support the environmental, social and about environmental implementations and the economic policies in the pursuit of sustainable need to comply with environment protection development?. EPF assists polluting enterprises laws and provided expertise for assessing and to reduce pollution by providing them addressing different environmental problems. information, resources and financial incentives. EPF funding mechanism was designed and Most international donors' schemes focused on tested in the World Bank?s Egypt Pollution the energy and industrial sectors due to the Abatement Project I (EPAP I) (1998-2005). fact that they emit pollutants with the highest health damage effect, reduction of pollution Legislation: and waste, increasing energy efficiency and The environmental legislation framework in minimising environmental damage. To achieve Egypt constitutes of numerous sectoral laws these results, the government of Egypt still implemented by a large number of government needs to exert extra effort in the enforcement agencies. EEAA is the main governmental of environmental laws. regulatory body. The main laws are as follows: ? Law 93/1962, regulating wastewater discharge to public sewage systems UK Trade & Investment Sector briefing: Environment opportunities in Egypt Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Environment opportunities in Egypt Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © Opportunities Following is a summary of the main equipment There is scope for the introduction of new & services needed: technologies and environmental solutions. The Egyptian Ministry of State for Environmental ? Solid Waste Management Equipment Affairs Maged George has been implementing and Operation serious, and increasingly successful, steps for ? Medical Incinerators abating all types of pollution, but it is still ? Incinerators for hazardous waste considered in its embryonic stage. Hence ? Design and construction of landfills opportunities are numerous. ? Equipment for Recycling Plants ? Composting Programs for agricultural The growth rate for the Environment industries waste market was estimated by some analysts to ? Waste plastic recycling plants & relevant reach 40%. The Egyptian government allocated training. L.E. 993 Million for Environment Protection in ? Hazardous waste treatment the 2008/09 state budget, up from L.E. 412 technologies. Million in 2005/06, of this amount, LE 566 ? New and renewable energy technology Million are earmarked for the purchase of and equipment especially solar energy goods and services. and wind farms. ? Industrial Filters The World Bank's Second pollution Abatement ? Emissions measuring instruments Project (SPAP) made Egypt the first country to especially for vehicle exhaust. receive large resources on pollution control ? Recycling technology for industrial from the World Bank and its partners. waste ? Kits For Converting Motor Vehicles to The increasing amounts of donation monies Use Natural Gas from international donors and organisations ? Filters to Reduce Particle Emissions and the financial facilitation some of them from Cement Factory Smokestacks provided have also contributed to increasing ? Equipment and Filters to Reduce the opportunities in the Environment sector. pollution coming from power plants ? Sanitary Wastewater Projects Egyptian environmental regulations impose ? Water filters more pressu ? Water and Sludge Treatment Projects, re on businesses to comply with Filters and Services environment laws. Businesses exporting to the ? Industrial wastewater treatment units. European Union, North America, and other ? Wastewater treatment units for tourist developed regions where compliance with villages and floating hotels. environmental standards can constitutes an ? Marine pollution removal equipment and explicit non-tariff barrier are also pushed to consultancy prove their compliance with international ? Education and training in new environmental standards. agriculture technologies to address the use of fertilisers and pesticides. Prosperous environment fields include water ? Education and training in the field of and wastewater management, solid waste protecting water rivers and canals. management, Environment consultancy, ? Education and training in updated renewable energy, and air pollution. technology for protecting coasts and preventing shoreline erosion. Furthermore, some environmental investment ? Environmental education programmes opportunities exist in remedying of existing and materials for all stages of pollution, providing consultancy services and education. the development of new products and services. ? Environmental training materials for Opportunities for UK firms in the numerous teachers. environmental industries are summarised ? Environmental training and materials for throughout the report. raising public awareness. UK Trade & Investment Sector briefing: Environment opportunities in Egypt Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © Clean Development Mechanism Clean Development Mechanism (CDM) Projects If you have any questions on the opportunities under the Kyoto agreement are of increasing above, contact the UKTI Egypt contacts named importance. There is an increasing awareness in this report. Business opportunities aimed of the potential and benefits of these projects specifically at UK companies are added daily to within the Egyptian authorities who are keen to UKTI?s website. These leads are sourced by our attract CDM Investors. There are currently at staff overseas in British Embassies, High least 15 opportunities for CDM investment in Commissions and Consulates, across all sectors Egypt. and in over 100 markets. For a list of these projects and all relevant You can be alerted to Egypt environment details, please visit the website (www.cdm- opportunities on a regular basis by registering egypt.org) updated by the Climate Change on the UKTI website. More on UKTI?s business Unit at the EEAA. opportunities service Renewable Energy Egypt is increasingly putting this sector higher on its agenda. In the past all investment in renewable energy generation used to be through international donors (Aid from Denmark, Germany, Japan, etc), but currently, a strategy is being put to encourage private sector contribution to satisfy the targeted 20% generation of energy through RE by 2020. RE is projected to be a potential sector in Egypt; effective natural resources, proposed government support and the selling of created CERs are due to make it attractive for both local and international investment. Egypt has very good potential for RE generation; Sunshine duration is 9-11h/day with very few cloudy days, wind speed reaches 10.8m/sec., Biomass amount is in the order of 60 million ton/year. Studies assure that, if utilised efficiently, RE can cover all Egypt's needs of energy and also export. The Egyptian government is studying a Feed-In Law and Feed-In Tariff to prepare for private investment (for the first time) in the sector. These regulations are to be raised to legislative authorities very soon. Some specialists expect the law to be issued in one year's time. UK Trade & Investment Sector briefing: Environment opportunities in Egypt Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © Major events and activities UKTI contacts Recycling & Waste Management Exhibition Wafaa Saad www.rwmexhibition.com Adviser, Trade & Investment NEC Birmingham British Embassy Cairo Time: 15-17 September 2009 Tel: (00202) 2791 6000 Fax: (00202) 2791 6130 Email: wafaa.saad@fco.gov.uk Futuresource www.uktradeinvest.gov.uk www.futuresourceuk.com Excel, London Alan Penrith Time: 15-17 June 2010 Director, Trade & Investment British Embassy Cairo Tel: (00202) 2791 6000 Find full details of all events in this Fax: (00202) 2791 6130 country and sector on the UKTI website. Email: alan.penrith@fco.gov.uk New export events are added daily to the site www.uktradeinvest.gov.uk and you can register to be alerted to them on a daily, weekly or monthly basis [link to events registration] UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Environment opportunities in Egypt Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © Next steps - How UKTI can help British companies wishing to develop their business in the Egyptian market are advised to undertake as much market research and planning as possible in the UK. UKTI?s team in Egypt, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Chinese market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Chinese market This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. UK Trade & Investment Sector briefing: Environment opportunities in Egypt Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Published 2010 by UK Trade & Investment. Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Crown Copyright ©
Posted: 29 September 2010, last updated 14 March 2011

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