The country of Egypt is projected to suffer from the effects of climate change, specifically in the form of floods, droughts, and rising sea levels. The energy sector currently holds the dubious distinction of being the largest emitter of carbon, with fossil fuel combustion activities serving as the primary contributor. Within the energy sector, the electricity sector is the biggest carbon emitter. However, the current mechanism for monitoring emissions in the electricity sector is outdated and does not incorporate the latest technological advancements that are capable of reducing emissions from power plants.
Recently, Egypt established an ambitious goal of reducing emissions by 33% by the year 2030. To achieve this target, various policy options are being explored, including the implementation of a carbon tax. While this policy has proven to be effective in reducing emissions and stimulating the economy, it is not politically feasible due to several reasons. One of the most significant obstacles to its implementation is the inability to impose an additional tax on electricity tariffs while the electricity subsidies have not yet been completely removed.
Instead, the recommended policy option is to establish new progressive regulations to control emissions. This policy option has numerous benefits, including being politically feasible. For further information on this matter, we suggest consulting the policy brief written by the Energytics director and published by Alternative Policy Solutions (APS).
