Egypt and the United Arab Emirates are forging a data-backed, tech-centered alliance designed to reduce greenhouse gas emissions across MENA’s industrial sector.
In the global race to decarbonise energy-intensive economies, Egypt and the UAE appear to be two nations that are accelerating ahead.
Central to this transformative shift is the Industrial Transition Accelerator (ITA), unveiled at the most recent COP28.
The ITA strategically integrates policy, capital, and cutting-edge climate technology to expedite decarbonisation across some of the most carbon-heavy industries.
With Egypt’s formal entry into the MENA program, joining founding members UAE and Bahrain, the initiative is rapidly gaining substantial regional momentum.
The urgency of this strategy is underscored by compelling data. MENA’s industrial sector alone is alleged to account for nearly 30% of regional CO₂ emissions, a figure highlighted by the IEA.
The Egypt-UAE alliance precisely targets five of the most polluting sectors: steel, with a global average CO₂ intensity of approximately 1.85 tonnes of CO₂ per tonne; cement, which contributes 7–8% of global CO₂ emissions; primary aluminium production, responsible for 12–16 tonnes of CO₂ per tonne; and the aviation and shipping sectors, which collectively represent over 3% of global emissions.
The ITA’s multifaceted approach aims to rapidly reduce emissions in these areas through advanced process electrification, widespread adoption of green hydrogen, Carbon Capture, Utilization, and Storage (CCUS) technologies, and comprehensive energy efficiency retrofits powered by AI-driven optimization.
Egypt is simultaneously spearheading one of the region’s most aggressive renewable energy rollouts.
Collaborating with UAE clean energy leaders Masdar and AMEA Power, Egypt is actively developing a 3 GW floating solar farm on Lake Nasser—set to be the largest of its kind globally—alongside multiple 2 GW solar cell and module manufacturing facilities.
Additionally, the country is deploying grid-scale battery energy storage systems to manage energy variability.
The government’s ambitious objective is to generate 42% of its total electricity from renewables by 2035, a significant leap from approximately 20% in 2023, thereby strategically positioning itself as a low-carbon industrial exporter to Europe, which is swiftly implementing carbon border adjustment mechanisms.
While specific details of Egypt’s upcoming CCUS projects remain confidential, the pioneering efforts of the UAE and Saudi Arabia offer a clear blueprint.
ADNOC’s Al Reyadah project in Abu Dhabi, for instance, already captures 800,000 tonnes of CO₂ annually from Emirates Steel, making it the world’s first commercial-scale CCUS facility in the iron and steel sector.
Similarly, Saudi Aramco is implementing CCUS across its oil and gas value chains, targeting capacities in the multi-million tonne range.
Egypt is expected to adapt and localize these proven models, particularly for its cement and steel clusters near Suez and Ain Sokhna, where full electrification may not be entirely feasible.
The ITA is engineered for swift deployment rather than protracted deliberation. Its operational model provides crucial technical, policy, and investment support to eligible projects, establishing a tight 24-month decision window for funding and implementation approvals.
The overarching goal is to launch full-scale projects by 2030, aligning seamlessly with national net-zero commitments.
Egypt’s Industrial Modernization Centre (IMC) plays a vital operational role, assisting domestic industries in conforming to global low-emission standards and facilitating access to international clean technology partners.
The imperative for action is undeniable. Without intervention, MENA’s industrial emissions are projected to surge by 18% above today’s levels by 2030.
However, with coordinated efforts, McKinsey estimates the region could achieve a 30–40% reduction in emissions across core industries, potentially unlocking a staggering $300–$600 billion in green export value by 2040.
By formalizing its strategic alliance with the UAE under the ITA, Egypt is making a calculated bet: that low-carbon industrial competitiveness will be a major differentiator in the sector.
