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Hydrogen

Egypt Unveils Tax Incentives to Propel Green Hydrogen Investments

Anela DoksoBy Anela Dokso09/11/20232 Mins Read
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Egypt has announced a comprehensive set of tax incentives aimed at catalyzing investments in green hydrogen projects. Mohammed Maait, the Finance Minister, unveiled these incentives during an investment conference in Istanbul, underscoring Egypt’s commitment to green energy and environmental sustainability.

Maait detailed the key elements of the incentive package, which encompasses not only tax exemptions but also dedicated funding facilities for green hydrogen projects. The tax exemptions for these projects are set to be substantial, ranging from 33 percent to 55 percent. This bold initiative aims to create a favorable financial environment, enticing both local and international investors to participate actively in the burgeoning green hydrogen sector.

One of the standout features of Egypt’s incentive program is the exemption from value-added taxes on both production and the essential substances required for green hydrogen projects. This strategic exemption aligns with the government’s vision to reduce financial barriers and boost the economic viability of these environmentally friendly initiatives. The comprehensive support package is poised to position Egypt as a favorable destination for green hydrogen investments.

Maait articulated the government’s broader vision, emphasizing the intention to expand the use of green funding tools. This commitment signifies a proactive approach to aligning financial instruments with sustainable practices, reflecting Egypt’s dedication to fostering a green economy. Furthermore, an ambitious plan is in motion to allocate around 50 percent of public investments toward sustainable and renewable projects, underscoring a holistic commitment to environmental stewardship.

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