Central Bank of Egypt Forms a Working Group of Relevant Ministries and Authorities to Issue Sustainable Finance Taxonomy
First Bank
In line with supporting the national direction toward promoting sustainable finance, and in alignment with international best practices in sustainability, the Central Bank of Egypt (CBE) has initiated the preparatory steps to issue the "Sustainable Finance Taxonomy".
This taxonomy aims to provide accurate and certified data on sustainable economic activities, amid the intersection of economic growth with environmental and social issues, thereby enhancing investor confidence and creates an attractive environment for green and sustainable investments in general.
To this end, a technical working group has been formed, 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, as well as the Financial Regulatory Authority (FRA).
The group aims to coordinate and integrate efforts among all relevant authorities, allowing them to share feedback and insights during the preparatory stages of the Sustainable Finance Taxonomy that will be issued by the CBE.
The working group held its first meeting at the CBE's headquarters, attended by representatives from member ministries and authorities. The meeting covered the CBE's vision for the upcoming taxonomy, alongside presentations on other countries' experiences in this field, applicable international standards, as well as existing challenges and opportunities.
The meeting concluded with an agreement to immediately commence executive steps, emphasizing the importance of full coordination among working group members.
It is worth noting that the Sustainable Finance Taxonomy is expected to increase the international funding to this promising field, and enhance risk management efficiency in project financing by providing clear classifications and guidelines to identify environmental and social risks.
