Providing Solutions to Decarbonize Energy-Intensive Industries for a Sustainable Future in Egypt by 2050

Abstract

Around 75% of worldwide greenhouse gas (GHG) emissions are generated by the combustion of fossil fuels (FFs) for energy production. Tackling climate change requires a global shift away from FF reliance and the decarbonization of energy systems. The energy, manufacturing, and construction sectors contribute a significant portion of Egypt’s total GHG emissions, largely due to the reliance on fossil fuels in energy-intensive industries (EIIs). Decarbonizing these sectors is essential to achieve Egypt’s sustainable development goals, improve air quality, and create a resilient, low-carbon economy. This paper examines practical, scalable solutions to decarbonize energy-intensive industries in Egypt, focusing on implementing renewable energy sources (RESs), enhancing energy efficiency, and integrating new technologies such as carbon capture, utilization, and storage (CCUS) and green hydrogen (GH). We also explore the policy incentives and economic drivers that can facilitate these changes, as the government aims to achieve net-zero GHG emissions for a sustainable transition by 2050.

1. Introduction

The global consumption of fundamental resources has consistently risen since 1990, keeping pace with the expanding global economy. In 2014, the industrial sectors were responsible for approximately 20% of worldwide CO₂ emissions, amounting to 6.2 Gt. of CO₂, with around 60–80% of these emissions primarily originating from energy-intensive industries that manufacture essential materials [1]. Over the last two decades, increased emissions from higher production levels have been partially balanced by significant advancements in energy efficiency and extensive investments in new low-carbon energy technologies, particularly in regions such as China, Europe, and the United States (US) [2]. The growing focus on sustainability has reshaped energy and climate policies, resulting in stricter regulations and stronger global political commitments. The European Union (EU) has played a leading role in successfully separating economic growth from carbon emissions [3]. Within the EU, individual member states set national goals to contribute to the broader EU targets. Among these, the Nordic countries have been at the forefront of green energy transitions, with Sweden recognized as a leading EU nation in the shift to a low-carbon energy system due to its high-performing clean energy framework [4].

Sweden has nearly eliminated carbon emissions from its electricity and heat generation by making significant investments in hydropower, nuclear energy, and various renewable energy sources, along with enhancing energy efficiency. Due to this low-carbon energy mix, Sweden has the smallest share of FFs in its primary energy supply compared to other countries in the International Energy Agency (IEA) [5,6]. Energy-intensive industries play a vital role in the Swedish economy and account for substantial energy consumption, resource use, and emissions. These industries primarily include mining, iron and steel production, aluminum manufacturing, pulp and paper, chemicals, petrochemicals, cement, and glass production. In 2018, the industrial sector consumed 141 TWh of energy, with approximately 75% used by EIIs. The subsectors with the highest emissions are iron and steel, minerals, chemicals, pulp and paper, and refineries, as shown in Figure 1. Reducing GHG emissions from EIIs poses significant challenges from both technological and innovation standpoints. These difficulties arise due to their high carbon output, capital-intensive nature with long investment cycles, reliance on global markets, and limited market-driven incentives [7,8].

In 1990, the EU proposed stabilizing CO₂ emissions by 2000 at the same levels recorded in 1990 [9]. Since then, the EU has introduced numerous regulatory measures to achieve climate goals. Shortly after the Kyoto Conference, the EU implemented the “Burden Sharing Agreement” [10], highlighting the strong connection between global climate negotiations and domestic policies. This 1998 agreement also demonstrates that national policies developed by member states, as part of coordinated EU actions, are key components of the broader EU climate strategy.

The process of industrial decarbonization will vary across countries based on local conditions. Factors such as the cost and availability of biomass, renewable electricity, and carbon storage infrastructure can significantly impact the viability of decarbonization strategies [11]. Therefore, it is essential to explore different approaches for reducing emissions across various countries and sectors.

There is a growing body of research examining possible pathways and opportunities for reducing industrial emissions at the global, regional, and national levels. Reducing industrial emissions requires a combination of policy reforms, technological innovations, renewable energy integration, and industry-specific global, regional, and national strategies. Globally, initiatives such as the Paris Agreement, carbon pricing mechanisms, and advancements in carbon capture and green hydrogen are driving industrial decarbonization. The IEA has outlined various industrial decarbonization scenarios in its Energy Technology Perspectives reports, emphasizing sector-specific strategies for emission reductions in hard-to-abate industries [12]. Similarly, the Intergovernmental Panel on Climate Change (IPCC) highlights industrial decarbonization as a critical component of global climate mitigation efforts, identifying electrification, carbon capture, and hydrogen-based solutions as key pathways [13].

At the regional level, the EU has made significant progress in decoupling economic growth from carbon emissions through the Emissions Trading System (EU-ETS) and the European Green Deal [14]. In the Middle East, countries are investing in large-scale renewable energy projects, carbon capture, and sector-specific sustainability efforts, particularly in the oil, gas, and cement industries. At the national level, country-specific studies, such as those focusing on China and Canada [15,16], are further exploring tailored approaches to industrial decarbonization, leveraging renewable energy integration, process optimization, and circular economy principles. Egypt also benefits from its potential in the field of renewable energy, as it could implement industrial energy efficiency measures and explore green financing to reduce emissions in key sectors such as cement, steel, and oil refining. While challenges such as high investment costs and policy enforcement persist, opportunities exist through international partnerships, technological advancements, and economic incentives for sustainable industrial growth. These studies collectively underscore the necessity of a multi-faceted approach that combines technological innovation, regulatory frameworks, and economic incentives to drive large-scale emission reductions in energy-intensive industries.

The World Energy Council offers three future energy scenarios up to 2060, focusing on energy security, equity, and environmental sustainability [17]. ExxonMobil provides projections of global energy demand and supply through 2040 to guide long-term investment decisions and to improve public understanding of energy requirements. The Institute of Energy Economics Japan (IEEJ) released the Asia/World Energy Outlook 2016 with two scenarios: a reference case without low-carbon measures and an Advanced Technologies Scenario (ATS) promoting low-carbon technology.

Notably, these scenarios primarily focus on the energy sector. However, a critical challenge is ensuring the availability of materials required to build the green technologies necessary to meet the 2 °C climate target, which is widely used as a benchmark [18]. A significant portion of research has concentrated on developing long-term pathways to achieve full decarbonization of global industries. Key reports, such as the IEA’s “Energy Technology Perspectives” and the Energy Transitions Commission’s (ETC) “Mission Possible”, emphasize that fully decarbonizing hard-to-abate sectors by 2050 is both technically achievable and economically viable.

Achieving the required reduction in emissions will depend heavily on breakthrough technological innovations. Decarbonizing industrial sectors is expected to significantly raise production costs, although the impact on final consumer prices is projected to be minimal [19]. For globally traded goods such as steel, an uneven pace of transition across regions could create competitiveness challenges. Therefore, developing cost-efficient climate policies is essential for future climate strategies.

Some researchers have examined the metal demands associated with low-carbon power technologies through a Life Cycle Assessment (LCA) approach for specific technologies [20,21]. In contrast, other key studies have focused on identifying critical raw materials needed for green technologies [22], as well as for decarbonizing the energy systems of Europe [23,24], Canada [16], and China [15,25]. These studies indicate that renewable energy technologies require more minerals compared to conventional energy sources.

Numerous analyses have assessed the EU Emissions Trading System (EU-ETS) from phases 1 to 3, examining its role in reducing emissions across Europe [26,27]. Several reports conclude that the EU-ETS has helped accelerate the decoupling of economic growth from carbon emissions within the region [28].

In 2014, the International Maritime Organization (IMO) published its Third GHG Study, estimating that global shipping contributes approximately 2.2% of annual CO₂ emissions worldwide. Additionally, it projected that emissions from international shipping could rise by 50% to 250% by 2050, primarily driven by the expansion of global trade [29,30].

In December 2019, the EU introduced the “Green Deal”, a strategic plan aimed at facilitating the EU’s shift to a climate-neutral economy by reducing carbon emissions by 55% by 2030 and achieving net-zero emissions by 2050 [31,32].

In summary, the conclusions drawn from previous energy transitions, the vast and rapid nature of the ongoing shift, the limitations of alternative approaches, and the urgent energy demands of billions of people in low-income regions are evident. This makes it necessary to create conceptual frameworks outlining how FFs could be completely phased out of the global energy system by 2050 [33].

Egypt, as a developing country with a rapidly growing population and economy, faces critical challenges in reducing GHG emissions from energy-intensive industries (EIIs). The global transition towards renewable energy sources and decarbonized industrial practices has become essential to meet climate goals set in the Paris Agreement and to limit the global temperature rise to 1.5 °C by 2050. For Egypt, decarbonizing its industrial sector is key to achieving a sustainable future while maintaining economic growth and competitiveness [34].

The energy transition aims to shift from fossil fuel dependency to renewable energy systems, a shift that has accelerated due to the COVID-19 pandemic and fluctuating oil prices. Energy-related CO₂ emissions, primarily from EIIs, account for a significant portion of global emissions. Decarbonizing these sectors is crucial to achieving net-zero emissions by mid-century, and Egypt must adopt solutions tailored to its unique socio-economic context and resource availability [35].

This study outlines strategies for decarbonizing key energy-intensive industries in Egypt, including cement, iron and steel, chemical production, petroleum refining, pulp and paper, and food and beverage. It addresses global trends, challenges, technological pathways, and policy frameworks required for the country to meet its climate targets (Figure 2).

• Primary Energy Consumption by Sector: The industrial and transport sectors are the largest consumers of energy, followed by the residential, commercial, and agriculture sectors.
• GHG Emissions by Sector: The energy industry, manufacturing, and construction sectors contribute the most to GHG emissions, with agriculture, industrial, and waste management also making notable contributions.

These pie charts highlight the significant roles of fossil-fuel-reliant sectors in Egypt’s energy profile and GHG emissions, underscoring the importance of transitioning to renewable energy sources to reduce emissions. This paper investigates feasible solutions tailored to Egypt’s unique resources and challenges to decarbonize energy-intensive industries and foster a sustainable economy.

Egypt has set sector-specific GHG emission reduction targets for 2030, focusing on the electricity, oil and gas, and transport sectors. In the electricity sector, the country aims to reduce emissions by 37% compared to a business-as-usual (BAU) scenario, equating to a reduction of approximately 80.52 GgCO₂e resulting in targeted emissions of 134.22 GgCO₂e under a mitigation scenario by 2030 [37]. For the oil and gas sector, Egypt plans to decrease emissions by 65% from 2.575 GgCO₂e under a BAU scenario to 0.893 GgCO₂e under a mitigation scenario by 2030, equating to a reduction of approximately 1.682 GgCO₂e relative to the BAU scenario [38]. In the transport sector, the goal is a 7% reduction in emissions from 124.36 GgCO₂e under a BAU scenario to 115.40 GgCO₂e under a mitigation scenario by 2030, equating to a reduction of approximately 8.96 GgCO₂e relative to the BAU scenario [39]. These targets are part of Egypt’s broader strategy to enhance energy efficiency, increase renewable energy adoption, and transition towards a more sustainable energy system.

This study presents several advantages over existing decarbonization solutions by tailoring its approaches to Egypt’s unique socio-economic and industrial landscape. Key advantages include the following:

• Unlike many studies that focus on developed nations, this research designs solutions specifically for Egypt’s energy-intensive industries (EIIs), addressing local economic conditions, policy frameworks, and available resources.
• This study highlights GHG emissions for industrial applications and CCUS for hard-to-abate emissions, offering a dual approach to deep decarbonization.
• Emphasizing Egypt’s vast solar and wind resources, this study proposes the large-scale adoption of renewable energy to power industrial operations, reducing the dependency on fossil fuels.
• This study promotes waste reduction, material efficiency, and recycling strategies to minimize resource consumption and emissions.
• The proposed solutions enhance energy efficiency while reducing carbon footprints by incorporating automation, AI, and the electrification of industrial processes.
• This study advocates for government-backed carbon pricing, subsidies for green technologies, and Public-Private Partnerships (PPPs) to accelerate decarbonization efforts.

Overall, this study’s solutions balance technological feasibility, economic viability, and policy frameworks, making them more practical for Egypt compared to generalized global approaches.

This paper is organized into several key sections: Section 1 sets the context, highlighting the urgency of reducing emissions in industries such as cement, steel, and chemicals. Section 2 presents an overview of industrial decarbonization in the Middle East. Section 3 highlights the key national frameworks for decarbonization. Section 4 provides an overview of Egypt’s energy-intensive industries. Section 5 presents a clear overview of the decarbonization pathways for key energy-intensive industries in Egypt. Section 6 focuses on describing policy recommendations and economic incentives. Section 7 discusses opportunities and challenges to decarbonization, while Section 8 highlights case studies of decarbonization efforts in Egypt. Section 9 offers a phased plan for achieving decarbonization goals. Finally, Section 10 reinforces the need for collaborative efforts to achieve a low-carbon future for Egypt’s industries and future research.

2. Overview of Industrial Decarbonization in the Middle East

The ME is home to some of the world’s largest energy-intensive industries, including oil and gas, petrochemicals, cement, steel, and aluminum production. These sectors are critical to the region’s economies but are also significant contributors to GHG emissions. According to the World Bank (WB) statistics given in Figure 3, energy use (kg of oil equivalent per capita) and CO₂ emissions in the ME have risen constantly within the past years. As global climate policies intensify, countries in the Middle East must address the challenge of decarbonizing their industrial sectors to ensure a sustainable future. This literature review explores various solutions and pathways researchers and organizations propose to achieve industrial decarbonization in the ME [40].

Energy-intensive industries, including steel, cement, aluminum, and chemicals, are responsible for a significant portion of global GHG emissions. The decarbonization of these sectors is crucial for achieving global climate targets, particularly in the Middle East, a region heavily reliant on fossil fuels for economic prosperity. This literature review explores existing and emerging solutions to reduce carbon emissions from energy-intensive industries, with a focus on technological innovations, policy frameworks, and economic considerations.

Technological advancements play a pivotal role in reducing emissions from energy-intensive industries. CCUS technologies are widely discussed in the literature as a means to significantly reduce CO₂ emissions. According to [41], CCUS can capture up to 90% of CO₂ emissions from industrial processes, making it a viable solution for industries that are difficult to electrify.

Hydrogen-based solutions are also gaining traction. Green hydrogen, produced using renewable energy, can replace fossil fuels in processes such as steel production. Research by IRENA (2021) in [42,43] highlights that hydrogen can contribute to decarbonizing industries that require high-temperature heat, which cannot be easily supplied by electricity.

In the cement industry, innovations in alternative binding materials and low-clinker cement are being explored to reduce CO₂ emissions. The importance of using supplementary cementitious materials, such as fly ash and slag, to lower the carbon footprint of cement production should also be emphasized.

The integration of RESs into industrial processes is a critical component of decarbonization. Solar, wind, and geothermal energy can be used to power industrial operations, reducing reliance on fossil fuels. For example, the Middle East has significant potential for solar energy, which can be harnessed to decarbonize industries in the region [44].

The electrification of industrial processes is another pathway toward decarbonization. However, the challenge lies in ensuring a reliable and affordable supply of renewable electricity. According to [45], the cost of renewable energy has decreased significantly over the past decade, making electrification more feasible for industries.

A circular economy approach can reduce emissions by promoting the recycling, reuse, and efficient use of resources. Material efficiency strategies, such as optimizing product designs to use fewer materials, extending product lifespans, and improving recycling rates, can lower the demand for energy-intensive materials.

According to [46], the Ellen MacArthur Foundation (2021) reports that adopting circular economy principles in industries such as steel and cement could reduce emissions by up to 40%. In the Middle East, initiatives to promote circular economy practices are gaining momentum, particularly in the United Arab Emirates (UAE) and Saudi Arabia.

Carbon pricing, including carbon taxes and ETS, is a key policy tool for incentivizing industries to reduce emissions. According to [40], the WB (2021) notes that over 60 countries have implemented some form of carbon pricing, covering 20% of global GHG emissions.

In the Middle East, carbon pricing remains a nascent concept. However, countries such as the UAE and Saudi Arabia have expressed interest in developing carbon markets. For instance, Saudi Arabia’s Circular Carbon Economy (CCE) framework aims to balance economic growth with environmental sustainability.

Governments can drive decarbonization by setting stringent emissions standards and regulations. For example, the EU industrial emissions directive mandates stricter pollution limits for industrial facilities. Similar policies could be adopted in the Middle East to accelerate industrial decarbonization.

Collaboration between governments and private sector players is essential for scaling decarbonization solutions. Public-private partnerships can help fund large-scale projects, such as CCUS infrastructure and renewable energy installations.

An example of a successful PPP is the “Al Reyadah” CCUS project in Abu Dhabi, the world’s first commercial-scale CCUS facility in the iron and steel industry [47]. The project demonstrates the feasibility of large-scale carbon capture in energy-intensive industries.

The Middle East faces unique challenges in decarbonizing its industries, including a reliance on fossil fuel revenues and a lack of diversification in industrial processes. However, the region also has significant opportunities to lead in industrial decarbonization, given its abundant renewable energy resources and financial capacity to invest in new technologies.

One study [48] argues that the transition to a low-carbon economy in the Middle East will require a shift in policy priorities, focusing on economic diversification and investment in green technologies. Countries such as Saudi Arabia and the UAE have already launched ambitious initiatives, such as “Saudi Vision 2030” and the UAE Net Zero by 2050 Strategic Initiative.

The “Neom” project in Saudi Arabia is a prime example of how the Middle East can spearhead industrial decarbonization. Neom aims to be a fully sustainable city powered by renewable energy, with a focus on green hydrogen production and sustainable industrial practices [49].

Another notable case is the Masdar City project in Abu Dhabi, which integrates renewable energy, energy efficiency, and sustainable urban planning. Masdar City serves as a model for sustainable industrial zones that can reduce emissions while promoting economic growth.

The Middle East’s diverse geography, including Egypt, as depicted in Figure 4 has abundant solar energy potential, with average solar radiation ranging from 2000 to 3200 kWh/m²/year, making renewable energy integration a viable option [50]. Yet, industrial decarbonization remains a challenge due to long investment cycles and outdated infrastructure. Developing renewable technologies is essential to mitigate environmental risks and address energy scarcity.

Global efforts have shown that countries such as Sweden have successfully decoupled economic growth from emissions by investing in hydropower, nuclear energy, and energy efficiency. Similarly, Egypt can leverage its natural resources and international cooperation to advance its decarbonization agenda. Given the country’s commitment to sustainable development and the United Nations Sustainable Development Goals (SDGs), Egypt must prioritize decarbonizing its industrial sector by 2050.

While there is a growing body of literature on global and regional decarbonization efforts, significant gaps remain in policy evaluation, industrial transitions, socioeconomic impacts, circular economy integration, financial barriers, and climate resilience. This study addresses these gaps by comprehensively assessing energy-intensive industries, evaluating policy effectiveness, and proposing tailored technological and financial solutions. Unlike prior research that primarily focuses on developed nations, this work contextualizes decarbonization within Egypt’s unique economic and resource constraints. By integrating renewable energy, smart manufacturing, carbon capture, and hydrogen strategies, it presents actionable pathways for policymakers and industry leaders. Additionally, it bridges the gap between global climate targets and local implementation, emphasizing just transitions and investment mechanisms to ensure long-term sustainability. Through this holistic approach, this study not only advances existing knowledge but also provides a strategic roadmap for Egypt’s low-carbon industrial future by 2050.

3. Egypt Climate Policy

Egypt’s commitment to decarbonizing its energy-intensive industries is deeply embedded within its national sustainability strategies. The integration of key policy frameworks such as Egypt Vision 2030, the National Council for Climate Change (NCCC), and the Strategic Plan for Climate Change 2050 is essential to aligning industrial decarbonization efforts with the country’s broader environmental and economic objectives.

3.1. Egypt Vision 2030

Egypt Vision 2030 is a comprehensive roadmap that outlines the country’s short-term development strategy, emphasizing sustainable economic growth, social justice, and environmental protection. Vision 2030 promotes a transition towards renewable energy sources, energy efficiency improvements, and industrial sustainability within the energy sector. This strategy plays a crucial role in steering energy-intensive industries toward lower emissions by fostering investments in green technologies and regulatory frameworks that encourage carbon reductions.

3.2. NCCC

The NCCC serves as the central coordinating body for climate policies and actions across various sectors. It oversees the implementation of Egypt’s climate commitments, ensuring that decarbonization strategies align with national and international targets, including the Paris Agreement. The NCCC facilitates cross-sectoral collaboration, enhances policy coherence, and drives initiatives to reduce industrial carbon footprints, including carbon pricing mechanisms and incentives for low-carbon industrial practices.

3.3. Strategic Plan for Climate Change 2050

Egypt’s Strategic Plan for Climate Change 2050 provides a long-term vision for climate resilience and sustainable development. This plan emphasizes the decarbonization of energy-intensive industries through enhanced renewable energy adoption, circular economy principles, and technological innovation. The strategy includes sector-specific pathways to lower emissions, supported by government policies, financing mechanisms, and international cooperation. By aligning with this framework, Egypt’s industries can leverage policy incentives and infrastructure developments that support sustainable transformation.

4. Overview of Egypt’s Energy-Intensive Industries

Egypt’s industrial sector contributes significantly to its gross domestic product, providing jobs and essential products. However, it is also responsible for a large share of national GHG emissions. Egypt’s industrial sector is characterized by high emissions from sectors such as the following:

• Cement Production: Dominated by energy-intensive processes that emit CO₂.
• Steel and Petrochemicals: Major sources of emissions due to the burning of FFs.
• Fertilizers and Chemicals: Significant users of natural gas and other fossil fuels.

These sectors rely heavily on conventional energy sources, posing a challenge for decarbonization due to their high energy requirements.

5. Technological Innovations for Decarbonization in Egypt

Innovative technologies are at the core of industrial decarbonization. Egypt can adopt several advanced solutions to reduce emissions across its EIIs:

5.1. Transition to Renewable Energy Sources

Egypt’s geographical and climatic conditions are favorable for renewable energy generation. Key solutions include the following:

• Solar and Wind Power: Egypt has substantial solar irradiance and wind corridors. Large-scale photovoltaic (PV) installations and onshore wind projects can power industrial operations directly or through grid connections.
• Green Hydrogen: Hydrogen production from renewables offers a promising solution for sectors such as steel, where high-temperature processes are essential. Electrolyzers powered by renewable electricity can produce green hydrogen, potentially replacing fossil fuels in industrial processes.

5.2. Improving Energy Efficiency

Efficient energy use can substantially reduce emissions in industrial processes. Strategies include the following:

• Smart Manufacturing: Utilizing advanced sensors, data analytics, and automation can improve process control and reduce energy consumption.
• Process Optimization: Upgrading equipment and implementing energy management systems can improve operational efficiency.
• Waste Heat Recovery: Recovering heat from industrial processes and converting it into usable energy can reduce overall energy demand.

5.3. CCUS

For industries where emissions are difficult to eliminate, CCUS offers a viable solution:

• On-Site Carbon Capture: CO₂ emissions can be captured directly from industrial facilities and either stored safely underground or utilized for other processes.
• Enhanced Oil Recovery (EOR): Captured CO₂ can be injected into oil wells to increase oil extraction, providing both economic and environmental benefits.

5.4. Electrification of Industrial Processes

Shifting from fossil-fuel-powered processes to electric systems using renewable electricity can lower emissions, especially in the heating and processing industries. By electrifying these processes, industries can further decarbonize by relying on a cleaner grid.

5.5. Circular Economy Practices

These practices promote recycling and reuse to minimize waste and reduce emissions.

Table 1. Decarbonization pathways for key industries. Data are compiled from multiple sources, including the International Energy Agency (IEA) [12], the Energy Transitions Commission (ETC) [51], and sector-specific reports on industrial decarbonization [42,52].

Industry	Decarbonization Pathways
Cement Industry	Clinker substitution	CCUS	Electrification	Fuel switching
	Using alternative materials such as fly ash and slag to reduce clinker content	Capturing CO2 emissions and storing or repurposing them	Replacing fossil-fuel-based kilns with electric kilns powered by renewable energy	Transitioning to biofuels and hydrogen
Iron and Steel Industry	Material efficiency		Electrification	Hydrogen-based direct reduction
	Improving recycling rates and reducing waste		Using electric arc furnaces powered by renewable electricity	Replacing carbon-intensive coke with green hydrogen
Chemical Industry	Process optimization	CCUS		Fuel switching
	Implementing smart manufacturing and digital twins to reduce energy consumption	Capturing emissions from chemical processes		Using renewable energy to produce hydrogen for chemical reactions
Petroleum Refining	Adopting bio-based feedstocks	CCUS	Electrification and energy efficiency
	Using biomass and waste products as inputs	Implementing CCUS to handle unavoidable emissions	Upgrading equipment and processes to reduce energy use
Pulp and Paper Industry	Process improvements		Energy self-sufficiency	Biorefineries
	Enhancing efficiency through automation and digital technologies		Utilizing residual materials for energy production	Converting biomass into fuels, chemicals, and materials
Food and Beverage Industry	Reducing food waste		Energy efficiency	Renewable energy
	Implementing measures to minimize waste along the supply chain		Upgrading equipment and optimizing processes	Integrating solar and wind energy into operations

provides a clear overview of the decarbonization pathways for key energy-intensive industries in Egypt.

6. Policy Recommendations and Economic Incentives

6.1. Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) Policies

• Recent policies and regulations by Egypt’s Electricity Utility and Consumer Protection Regulatory Agency (EgyptERA) focus on modernizing the electricity sector, promoting renewable energy, and enhancing consumer protection. Key initiatives include amendments to commercial regulations for electricity distribution companies [53], net metering policies to encourage solar energy adoption [54], and streamlined guidelines for connecting buildings to the main electricity supply [55]. Additionally, EgyptERA has introduced frameworks for private-to-private electricity schemes [56], licensing procedures for solar self-consumption plants [57], and comprehensive regulations for integrating solar energy into the national grid [58]. These measures aim to enhance energy efficiency, increase private sector participation, and support Egypt’s transition toward a more sustainable and resilient energy system.

6.2. Policy and Regulatory Frameworks

Government policies and regulations play a critical role in driving decarbonization efforts. Egypt must implement a robust policy framework to support its industrial transition:

• Establish clear and ambitious emission reduction targets for each industry.
• Implement carbon taxes or emissions trading schemes to make carbon-intensive processes more costly to incentivize industries to reduce their emissions and encourage cleaner alternatives.
• Provide subsidies for green technology and tax benefits for industries that adopt renewable energy solutions. Financial incentives for renewable energy projects, electrification, and green hydrogen can drive investment in low-carbon technologies.

6.3. Economic Incentives and Funding

• Foster collaboration between the government, private sector, and research institutions to drive innovation and investment in low-carbon technologies and pool resources and expertise, accelerating decarbonization projects.
• Egypt can leverage international climate finance mechanisms, such as the “Green Climate Fund”, and technology transfer agreements to support decarbonization efforts and green initiatives.

7. Opportunities and Challenges to Decarbonization in Egypt

Table 2. (A) Feasibility assessment of solar energy, wind energy, and hydrogen technologies in Egypt. (B) Feasibility assessment of CCUS, energy efficiency, and circular economy technologies in Egypt.

(A)
Factor	Solar Energy Feasibility	Wind Energy Feasibility	Hydrogen Feasibility
Infrastructure Readiness	- High solar radiation (2000–3000 kWh/m2/year). - Benban Solar Park (1.8 GW). - Expanding transmission infrastructure. - Limited local PV manufacturing. - Grid integration/storage challenges.	- Strong wind potential (7–10 m/s in Gulf of Suez). - Established wind farms (1.6 GW). - Grid congestion in high-wind areas. - Need for advanced forecasting/storage tech.	- Existing natural gas pipelines can support blue hydrogen. - Green hydrogen requires large-scale electrolyzer deployment and renewable energy expansion. - Hydrogen projects in the Suez Canal Economic Zone (SCZone) show promise.
Policy and Regulatory Framework	- Feed-in Tariff (FiT) and PPP support. - Vision 2030 goal: 42% renewables by 2035. - Bureaucratic delays in approvals. - Need for clearer long-term incentives.	- Government incentives (land allocation, tax breaks, PPAs). - International support (EU, Japan, World Bank). - Need for more competitive bidding processes. - Delays in land acquisition.	- Egypt is developing a National Hydrogen Strategy. - Agreements with EU, Germany, and Japan signal political will. - No clear regulatory framework for hydrogen production, storage, or distribution.
Economic Viability	- Falling solar costs and strong foreign investment. - Revenue from energy exports. - Fossil fuel subsidies impact competitiveness. - High capital costs for small-scale projects.	- Decreasing wind costs (~$0.03/kWh). - Target: 14 GW wind capacity by 2035. - High upfront costs for offshore wind. - Underdeveloped local turbine supply chain.	- Green hydrogen remains expensive due to high production costs. - Government subsidies and FDI are necessary for scaling. - Egypt prioritizes hydrogen exports over domestic adoption, which may slow local industrial decarbonization.
(B)
Factor	CCUS Feasibility	Energy Efficiency Feasibility	Circular Economy Feasibility
Infrastructure Readiness	- Major industrial CO2 emitters (cement, steel, petrochemicals) exist. - CO2 storage potential identified in the Gulf of Suez and the Western Desert, but further assessment is needed. - No CO2 transport infrastructure (pipelines, hubs) currently exists.	- Growing electricity demand (~7% annual growth) encourages efficiency improvements. - Siemens mega power plants increased efficiency by 30%. - Smart grid and smart meter projects in urban areas. - Efficiency improvements in energy-intensive industries (cement, steel, petrochemicals). - Old and inefficient transmission and distribution networks (10–15% energy losses). - Limited adoption of energy-efficient buildings. - Low awareness in residential and commercial sectors.	- High waste generation (~95 M tons/year). - Emerging waste-to-energy projects. - Limited waste separation. - Underdeveloped recycling facilities.
Policy and Regulatory Framework	- No dedicated CCUS regulatory framework for storage, liability, or investment incentives. - No carbon pricing or credits to drive adoption.	- National Energy Efficiency Strategy aligns with Egypt Vision 2030. - Electricity Law (2015) supports demand-side energy management. - Energy efficiency codes for buildings and green initiatives (EDGE certification). - Government-led energy audits for industrial sectors. - Weak enforcement of energy efficiency regulations. - Lack of strong financial incentives for private sector adoption. - Subsidized electricity prices reduce motivation for efficiency improvements.	- New Waste Management Law (2020). - Government incentives for waste-to-energy. - Weak enforcement of regulations. - Dominance of the informal waste sector (70%).
Economic Viability	- CCUS is capital-intensive and lacks direct financial incentives. - Cement and steel industries require clear incentives or mandates for investment.	- Significant cost savings potential from reduced energy waste. - International funding (EU, World Bank, UNDP) supports efficiency programs. - Energy Service Companies (ESCOs) emerging with performance-based financing. - High initial investment costs for efficient equipment and retrofitting. - Limited financing access for small businesses and households. - Long payback periods discourage investment.	- Growing market for recycled materials. - Foreign investment in waste-to-energy (Siemens, Veolia). - High cost of recycling infrastructure. - Few financial incentives for circular practices.

summarizes the feasibility assessment of hydrogen and CCUS technologies in Egypt. Decarbonizing Egypt’s industries presents both opportunities and challenges:

➢

Opportunities:

• Significant reductions in GHG emissions and improved air quality.
• Creation of green jobs, increased competitiveness in global markets, and reduced reliance on imported fossil fuels.
• Enhanced energy independence through the use of local RESs.

➢

Despite these promising solutions, Egypt faces several challenges:

• Decarbonization measures have high initial costs, which may deter private investment. Transitioning to renewable energy and implementing CCUS technologies require significant capital.
• There is a need for significant investment in the research and development of low-carbon technologies. Some industries require new infrastructure to support renewable energy and hydrogen.
• Ensuring regulatory alignment to support decarbonization across different sectors requires substantial policy reform.
• Uncertainty in demand for low-carbon products and the lack of established markets for new technologies.
• Lengthy permitting processes and a lack of coordination among government agencies.

8. Case Studies of Decarbonization Efforts

8.1. The Helwan Cement Plant

The Helwan Cement Plant recently invested in alternative fuel sources, including agricultural waste, reducing its reliance on fossil fuels by 20%. This shift reduced emissions and demonstrated the economic viability of renewable fuel sources in the cement sector.

8.2. Suez Steel Company

Suez Steel has begun exploring hydrogen-based steel production, utilizing electrolyzers powered by renewable energy to replace natural gas in some of its production processes.

9. Roadmap to 2050

Egypt can achieve a sustainable industrial future by following a phased roadmap:

9.1. Short-Term (2030)

Implement energy efficiency measures in EIIs.

Pilot decarbonization projects across various sectors.

Establish a regulatory framework to support emissions reduction.

Expected Impact by 2030

By adopting these strategies, Egypt could achieve the following:

• Reduce industrial sector emissions by 30–40% [37].
• Create jobs in renewable energy and green technology sectors.
• Improve air quality, with a significant impact on public health.

9.2. Medium-Term (2040)

Scale up renewable energy integration in industries.

Deploy advanced decarbonization technologies, such as hydrogen and CCUS.

Foster international partnerships to access funding and technology.

9.3. Long-Term (2050)

Achieve full decarbonization of energy-intensive industries.

Transition to a circular economy model.

Ensure Egypt’s industries are globally competitive and environmentally sustainable.

10. Conclusions and Future Work

Decarbonizing energy-intensive industries is essential for Egypt to meet its climate goals and ensure a sustainable future. By adopting innovative technologies, implementing supportive policies, and fostering international collaboration, Egypt can lead the MENA region in industrial decarbonization, contributing significantly to global efforts to combat climate change. The path to 2050 will require significant investment and commitment, but the long-term benefits for the environment, economy, and society far outweigh the costs. Based on the detailed discussions provided in this article, the following main objectives are proposed to achieve the decarbonization of energy-intensive industries in Egypt by 2050: achieve significant emissions reductions; promote renewable energy integration; implement advanced decarbonization technologies; develop policy and regulatory frameworks; foster economic viability and investment; enhance regional and international cooperation; address social and behavioral dimensions; and establish monitoring and evaluation mechanisms.

By pursuing these objectives, Egypt can position itself as a regional leader in industrial decarbonization, contributing to global climate goals while ensuring economic sustainability and growth. Addressing these areas will help Egypt achieve a sustainable, low-carbon industrial future.

While this study presents a comprehensive roadmap for industrial decarbonization in Egypt, future research should focus on advancing green technologies, improving circular economy applications, and assessing the economic and regulatory frameworks needed to accelerate this transition. Additionally, challenges related to financing, infrastructure, and workforce development must be addressed to ensure a feasible and equitable decarbonization pathway. Overcoming these hurdles will require strong collaboration between policymakers, industry leaders, and international stakeholders to drive sustainable industrial transformation in Egypt.