Iron & Steel, Fertilisers and Aluminium are Egypt's primary CBAM-covered exports to the EU.
Egypt exports long steel products (rebar, wire rod), flat-rolled steel, and nitrogen fertilisers (ammonium nitrate, urea) to EU markets. Aluminium semi-finished products are a growing export category. Egypt directs a significant share of its nitrogen fertiliser output to the EU, with producers OCI and Abu Qir among the primary exporters. The majority of steel exports originate from integrated blast furnace and electric arc furnace facilities.
Global fertiliser supply is under structural pressure. Russia–Saudi Arabia trade tensions, Iran–USA conflict risk, and Strait of Hormuz closure scenarios are collectively tightening nitrogen fertiliser supply to European markets. Egypt — with OCI and Abu Qir as major producers — has the production capacity to capture significant EU market share.
The constraint is CBAM. Egypt's ammonium nitrate default (2.44 tCO₂e/t) and urea default (1.47 tCO₂e/t) place Egyptian producers above the SEFA benchmark in most scenarios — meaning CBAM certificates are owed unless actual verified emissions are provided.
Producers who verify actual emissions before competitors will capture market share. Those who don't will cede it.
Carbon pricing in Egypt: Egypt does not currently operate a domestic carbon pricing mechanism, national emissions trading scheme, or carbon tax applicable to CBAM-covered goods.
No carbon price has been paid in Egypt on production of CBAM-covered goods. Egyptian exporters pay the full CBAM certificate cost on embedded emissions above the sector benchmark. Egypt has announced a domestic carbon framework in development, but no qualifying scheme exists as of 2026.
An Egyptian government delegation visited Brussels in early 2026 — meeting DG TAXUD, DG CLIMA, ArcelorMittal, and the World Steel Association — to address a critical gap: the shortage of EU-accredited verifiers willing to conduct site visits outside Europe.
Of the EU's national accreditation bodies, only seven have indicated willingness to oversee verifications outside Europe — and they cannot meet demand. EGAC (Egypt) and UKAS (UK) are the only two non-EU bodies with EA/IAF-level recognition positioned to bridge this gap, but their formal approval under CBAM remains pending.
The practical implication for Egyptian exporters:
Verifier capacity is constrained. Egyptian exporters who move early to engage an accredited verifier secure their slot. Those who wait risk being unable to provide verified data before the September 2027 declaration deadline — and paying on default values by default.
Egyptian fertiliser and steel producers with EU export volumes above 50 tonnes should prioritise establishing a monitoring plan and engaging an accredited verifier before the September 2027 declaration. The gap between default values and actual verified emissions is commercially significant — particularly for ammonia producers using efficient Haber-Bosch plants. Note: IR 2025/2621 does not publish a country-specific default value for Egyptian steel semi-finished products — Egypt falls under the "Other Countries" default of 4.40 tCO₂e/t (BF-BOF route), one of the highest in the regulation. Egyptian steel exporters have a strong financial case for providing verified actual emissions data.
Verify Your Actual Emissions →Estimate your 2026–2034 CBAM certificate costs using your sector, volume, and production route.
Free Sector Calculator →Need a verified, installation-specific CBAM exposure report for Egypt? Our Country Assessment covers default vs actual emission gaps, benchmark comparison, and a 2026–2034 cost trajectory.
Request Assessment →Default values sourced from IR 2025/2621 (EU Commission). Net costs are illustrative — actual liability depends on verified embedded emissions, SEFA benchmark deduction, and the applicable CBAM phase-in factor. Not legal or compliance advice.