48-9 Central Bank of Egypt’s Sustainable Finance Binding Regulations

Summary

The Central Bank of Egypt has announced that it will issue binding regulations on sustainable finance in order to achieve sustainable development goals and Egypt's Vision 2030. The regulations are based on a gap analysis conducted by the Central Bank of Egypt on sustainable finance practices in the Egyptian banking sector. The regulations require banks to incorporate sustainable finance policies within their credit and investment policies, establish an independent department for sustainability and sustainable finance, and prepare periodic reports on their sustainable financing activities. Banks must also consult an accredited environmental expert to assess environmental risks of large corporate projects. The regulations will take effect on various dates starting from April 1st 2023 and will be enforced by the Central Bank of Egypt.

Issuer

Egypt

Year

2022

Region

Africa

Issuer (type)

Central Bank of Egypt (Central Bank)

Policy Type

Disclosure

Geographical scope

National

Mandatory or voluntary

Mandatory

Global Reporting Initiative (GRI)

Voluntary Use

Main industries targeted

Finance & Insurance

Restrictiveness

Very High

Sustainable Development Goals (SDGs)

SDG 1: No Poverty
SDG 2: Zero Hunger
SDG 4: Quality Education
SDG 5: Gender Equality
SDG 8: Decent Work and Economic Growth
SDG 9: Industry, Innovation, and Infrastructure
SDG 10: Reduced Inequality
SDG 12: Responsible Consumption and Production
SDG 15: Life on Land
SDG 17: Partnerships for the Goals