The Egyptian Senate has been holding deliberations since Wednesday, 1 November, regarding a study by Senator Amr Ezzat of the Committee on Energy, Environment, and Labor that raises concerns about the potential incorporation of a carbon tax. Ezzat’s study, titled “Economic Development Between Energy Sources and Addressing Environmental Issues,” analyzes the potential consequences of introducing a green tax, particularly in a country like Egypt, which is not considered “a leading energy producer.” The study highlights how such a law could potentially result in elevated prices for goods and services traditionally reliant on fossil fuels. The Egyptian government declared in January 2023, as part of the International Monetary Fund (IMF) Extended Fund Facility program, that it would consider green tax solutions that improve the efficiency of carbon pricing and aid in emission reduction. In addition to the USD 3 billion (EGP 92 billion) Egypt has already received as part of the extended facility deal, it is also seeking financing for climate mitigation policies from the Resilience and Sustainability Facility (RSF). A carbon tax is levied on companies based on their greenhouse gas emissions in the products they produce, such as carbon…
