Environmental Law in Egypt: A Comprehensive Legal Perspective on Challenges and Solutions

Earth Day… From Environmental Awareness to Legal Responsibility

The world celebrates Earth Day on 22 April of each year. The occasion began in 1970 and has become one of the most important global milestones for raising awareness of environmental risks and the need to protect natural resources and the rights of future generations.

This occasion is no longer merely a symbolic call to preserve nature. Pollution, climate change, water scarcity, biodiversity degradation, and waste management have become issues directly connected with the economy, investment, public health, and food security, while environmental rules have become an integral part of the legal environment in which companies and projects operate.

Earth Day has also acquired particular significance within the international climate framework, as the Paris Agreement on climate change was opened for signature at the United Nations Headquarters on 22 April 2016, following its adoption in December 2015, reinforcing the link between the occasion and binding international action to address climate change.

Dr. Mostafa El Rouby previously addressed this issue in his article published on the Akhbar El Yom portal under the title “On International Earth Day”, emphasizing that environmental protection is no longer merely an ethical obligation, but has become a legal and economic obligation that should be integrated into State policies and corporate decisions.

The Constitutional Basis of the Right to the Environment

Environmental protection in Egypt does not begin with the Environment Law alone. The 2014 Constitution provides it with a direct constitutional foundation.

Article 46 provides that every person has the right to a healthy and sound environment and that its protection is a national duty. It also obliges the State to take the necessary measures to preserve the environment, prevent harm to it, and ensure the rational use of natural resources in a manner that achieves sustainable development and protects the rights of future generations.

Article 45 also protects seas, beaches, lakes, waterways, and nature reserves, and prohibits encroachment upon them, pollution, or their use in a manner inconsistent with their nature.

This means that environmental protection is not merely an administrative policy that the State may choose to adopt or abandon, but rather a constitutional obligation reflected in legislation, administrative decisions, planning, and investment.

Environmental Challenges in Egypt

Egypt faces a range of interconnected environmental challenges that differ in nature and origin but all converge in their impact on development and quality of life.

Among the most prominent challenges are:

Air pollution in urban and industrial areas.
Management of municipal, industrial, and hazardous waste.
Protection of the Nile River, waterways, and groundwater.
Marine and coastal pollution.
Degradation of certain ecosystems and biodiversity.
Desertification and land degradation.
Climate change risks and rising temperatures.
Sea-level rise and its impact on coastal areas.
Increasing demand for resources and energy resulting from population and urban growth.

Accordingly, modern environmental law is no longer merely a law for punishing a polluting factory, but has become a network of rules governing planning, investment, licensing, energy, waste, water, transportation, and industry.

Environment Law No. 4 of 1994… The Principal Legislative Framework

Environment Law No. 4 of 1994, as amended, particularly by Law No. 9 of 2009 and Law No. 105 of 2015, constitutes the principal legislative framework for environmental protection in Egypt.

The Law established the Egyptian Environmental Affairs Agency and defined its powers, while setting rules for the protection of air, the marine environment, and natural resources, regulation of hazardous substances, and monitoring of facilities and pollution sources.

It also established a system of environmental inspection, judicial enforcement, and monitoring of non-compliant facilities, so that the State’s role is not limited to granting approval at the beginning of a project but extends to monitoring the facility’s compliance during operation.

Environmental Impact Assessment… Protection Begins Before the Project Operates

One of the most important principles underlying Egyptian law is the principle of preventing harm before it occurs, embodied in the system for environmental impact assessment of projects.

A project that may have environmental impacts should not first commence and only later have those impacts examined. Rather, the expected impact and the possibility of mitigating it should be assessed before implementation.

The Egyptian Environmental Affairs Agency has developed a system for classifying projects according to the scale and potential environmental risks of their activities. Among the principal classifications are:

Category “A”: projects with limited environmental impacts.
Category “B”: projects with potentially moderate impacts.
Specified Category “B”: where the nature of the project requires more detailed study of certain environmental aspects.
Category “C”: projects with potentially significant environmental impacts requiring a full environmental impact assessment study.

This classification is not merely procedural. The assessment process may result in approval of the project subject to specific environmental conditions, or refusal where its impacts cannot be adequately controlled.

An Environmental Impact Study Is Not Merely a Document Required for Licensing

One practical mistake is for some companies to treat an environmental impact assessment study as a document prepared once to obtain approval and then placed in the archives.

Environmental approval may contain conditions relating to operating methods, emissions control systems, treatment of wastewater and waste, or periodic monitoring, and those conditions become part of the project’s continuing obligations during operation.

A change in activity, increase in production capacity, or addition of a new production line may require review of the project’s environmental status and obtaining the necessary approvals before implementation.

Environmental Inspection and Environmental Compliance Plans

The Egyptian Environmental Affairs Agency and its branches conduct periodic or comprehensive inspections, and inspections may also be carried out as a result of a complaint or environmental incident.

If inspections reveal violations, the facility may be required to take corrective measures and submit an environmental compliance plan according to the nature of the violation and the decision issued by the competent authorities.

The importance of internal environmental review lies in enabling the company to identify a problem before it develops into an official violation report, production shutdown, or judicial dispute.

The Environmental Protection Fund… It Was Not Established in 2015

It is important to correct one point that is repeated in some legal writings: the Environmental Protection Fund was not established by Law No. 105 of 2015.

The Fund was originally established under Environment Law No. 4 of 1994, and Law No. 9 of 2009 subsequently strengthened its position by granting it legal personality and developing its operating mechanisms.

The Fund aims to support environmentally beneficial activities and projects and encourage investment in pollution reduction, cleaner production, and environmental technology transfer.

Forms of support used by the Fund have included grants, concessional loans, interest subsidies, and participation in certain projects in accordance with the applicable programs and conditions.

What Did Law No. 105 of 2015 Add?

Law No. 105 of 2015 introduced important amendments to the Environment Law, most notably more detailed regulation of coal and the environmental requirements associated with its use, handling, and importation.

Article 40 bis was added, prohibiting the importation, handling, or use of coal or petroleum coke without the approval of the Egyptian Environmental Affairs Agency and requiring compliance with the conditions and standards prescribed by the Executive Regulations.

The amendments also linked a number of environmental services and studies to administrative fees and expanded the State’s tools for monitoring environmental activities.

However, the objective of regulating coal was not to prohibit it entirely or regard it as inherently unlawful, but rather to subject its importation, handling, and use to environmental conditions and controls designed to limit its risks.

Waste Management Regulation Law No. 202 of 2020… A Major Transformation in the Framework

It is no longer possible to study Egyptian environmental law without referring to Waste Management Regulation Law No. 202 of 2020 and its Executive Regulations.

The Law established an independent framework for managing different types of waste, based on defining the responsibilities of different authorities, supporting the circular economy, involving the private sector, and regulating activities involving the collection, transportation, storage, treatment, recycling, and final disposal of waste.

The Law is also connected with the work of the Waste Management Regulatory Authority, and a number of activities relating to hazardous and non-hazardous waste now require specific licenses and approvals.

This represents an important development because waste is no longer treated merely as a by-product of industrial activity, but as a regulated economic sector through which reuse, recycling, and recovery of resources and energy can take place.

Responsibility for Waste Does Not End When It Leaves the Factory

Facilities must select entities legally licensed to handle the waste generated by their activities, particularly hazardous waste.

Merely handing waste over to an unqualified contractor or unlicensed entity does not necessarily provide legal protection to the facility if it is later discovered that the waste was disposed of unlawfully.

Accordingly, waste management contracts should contain clear provisions concerning licenses, transportation and storage methods, final disposal, and documents evidencing receipt and tracking of the waste.

Coastal Protection… The Prohibition Is Not Absolute

Egyptian law protects coastal areas as among the most environmentally sensitive ecosystems, but it does not impose an absolute prohibition on every building located within 200 meters of the shoreline.

More precisely, legislation prohibits the construction of facilities and performance of works within the coastal prohibition zone unless the approvals prescribed by law have been obtained.

The Environment Law, in conjunction with Water Resources and Irrigation Law No. 147 of 2021 and its Executive Regulations, establishes a zone extending, in principle, up to two hundred meters inland from the shoreline, with the final prohibition line being determined through coordination among the competent authorities on the basis of relevant studies.

Works that affect or alter the natural course of the shoreline are likewise prohibited unless the necessary approvals have first been obtained.

This means that a coastal project requires a specific legal and environmental assessment before purchasing the land or approving the master plan, because ownership of the land alone is insufficient to confer a right to build.

Marine Pollution and Vessel Liability

The Environment Law devotes an important part of its provisions to protecting the marine environment from pollution and regulates the discharge of oils, harmful substances, and waste from vessels and marine facilities.

These provisions are particularly important for Egypt given its extensive coastlines on both the Mediterranean and Red Seas, the presence of the Suez Canal, and the large number of ports.

A marine pollution incident may give rise to more than one form of liability simultaneously: administrative or criminal liability under national legislation, as well as civil and compensatory liability under international conventions to which Egypt is a party, depending on the nature of the incident, vessel, and pollutant.

Shipping companies, ports, and maritime service providers therefore require emergency response plans, appropriate insurance coverage, and clear procedures for reporting and responding to incidents.

Nature Reserves and Biodiversity

The Environment Law operates in conjunction with Law No. 102 of 1983 concerning Nature Reserves, which provides special protection for areas having environmental, geological, or biological value.

Certain activities may not be carried out and projects may not be established within nature reserves except in accordance with permits and conditions specified by the competent authorities.

This protection also has economic significance. Nature reserves, coral reefs, and natural resources form part of Egypt’s tourism assets, and their degradation represents not only an environmental loss but also a direct loss to the tourism sector and local economy.

Climate Change and the Egyptian Legal Framework

There is currently no single comprehensive Egyptian law governing all aspects of climate change, but Egypt has a growing institutional, legislative, and strategic framework.

In addition to the Environment Law, the National Council for Climate Change was established in 2015 and reorganized in 2019 to serve as a framework for coordination among the relevant government authorities.

The State also launched the Egypt National Climate Change Strategy 2050, addressing low-emission growth, adaptation to climate impacts, governance, financing, and scientific research.

Egypt also submitted its second updated Nationally Determined Contribution through 2030 in June 2023 under the Paris Agreement.

The Paris Agreement… What Is the Actual Commitment?

The Paris Agreement does not simply provide for preventing global temperature rise from exceeding 1.5 degrees Celsius in absolute terms. Rather, it seeks to hold the increase in the global average temperature well below 2°C above pre-industrial levels, while pursuing efforts to limit the increase to 1.5°C.

The Agreement is based on States submitting and periodically updating their Nationally Determined Contributions, while enhancing transparency, reporting, adaptation, and financing.

For Egypt, climate commitments represent both a challenge and an opportunity. They require substantial investment, but they also create opportunities in clean energy, green finance, and emissions reduction.

Egypt and the Voluntary Carbon Market

The year 2024 witnessed an important development with the launch of the first regulated and supervised voluntary carbon market in Egypt under the supervision of the Financial Regulatory Authority, in cooperation with the relevant authorities.

The concept is based on registering emissions reduction projects, verifying them, and issuing certificates representing tradable reduction units in accordance with regulatory rules.

In certain cases, this transforms emissions reduction from merely a compliance cost into an economic asset capable of generating a return for the project where registration and verification standards are satisfied.

However, carbon certificates do not constitute an exemption from compliance with environmental law. A company cannot pollute the environment and then purchase carbon certificates as a substitute for complying with legal requirements.

Environmental Legislation and Investment… The Relationship Has Changed

Some investors once viewed environmental requirements as an additional cost or an obstacle to rapid project implementation, but markets and international finance are changing this perspective rapidly.

A facility that uses energy and water efficiently, manages its waste properly, and reduces emissions may be better positioned to:

Obtain green financing.
Export to markets with advanced environmental requirements.
Work with international companies imposing conditions on supply chains.
Avoid the costs of violations, shutdowns, and remediation.
Improve risk assessment in investment and acquisition transactions.

Environmental risks have therefore become part of the legal and financial due diligence of any serious project.

Environmental Due Diligence in Acquisition Transactions

When an investor purchases a factory or industrial land, reviewing title documents, the commercial register, and taxes is not sufficient.

The investor may acquire a company with previous environmental violations, contaminated land, or costly waste remediation obligations, affecting the value of the transaction.

Accordingly, Environmental Due Diligence should include, depending on the nature of the project:

Environmental approvals and impact assessment studies.
Previous inspection reports.
Environmental compliance plans.
Hazardous and non-hazardous waste records.
Permits for handling hazardous substances.
Emissions and wastewater measurement results.
Any existing environmental disputes or complaints.

The outcome of this review may lead to adjustment of the transaction price or requests for warranties and indemnities from the seller before completion.

Contracts Should Clearly Allocate Environmental Responsibility

Many projects rely on contractors, suppliers, plant operators, and waste management companies. Environmental risks should therefore not be left entirely to the general rules.

Contracts should preferably specify clearly:

The party responsible for obtaining permits.
Compliance with environmental requirements.
Waste management and transportation.
Reporting of incidents and leaks.
The cost of pollution remediation.
Liability for fines resulting from the fault of one contracting party.
The other party’s right to inspect and request documents.
Insurance against certain environmental risks where appropriate.

A general clause stating that “the contractor shall comply with the law” may not be sufficient when an incident involving millions of Egyptian pounds occurs.

Environmental Justice… Who Bears the Cost of Pollution?

One important principle of environmental policy is that the cost of polluting activity should not be transferred entirely to society.

A facility that generates profits from an activity that pollutes air or water should bear the costs of prevention and remediation as part of its operating costs, rather than leaving the State or citizens to bear the consequences of that activity.

At the same time, rules should be applied fairly and predictably so that investors can understand the requirements and costs before committing capital.

This is how a balance is achieved between the polluter pays principle and the need for a clear and stable investment environment.

What Does the Environmental Framework Need in the Next Phase?

Egypt has an extensive legislative framework, but improving outcomes requires greater focus on the quality of implementation rather than merely increasing the number of legal provisions.

Among the most important priorities are:

Completing the digitalization of environmental licenses and approvals and connecting them with other administrative and investment authorities.
Periodically updating limits and technical standards to reflect technological and industrial developments.
Expanding self-monitoring and electronic emissions monitoring systems in high-risk facilities.
Developing waste management on the basis of the circular economy and resource recovery.
Providing technical and financial support to small and medium-sized enterprises for compliance rather than relying solely on penalties.
Enhancing transparency and publication of environmental data to assist citizens, investors, and decision-makers.
Strengthening technical and legal expertise in complex environmental disputes.
Further integrating climate risks into project and infrastructure planning.

Increasing Penalties Alone Is Not the Solution

Penalties are necessary where environmental violations occur, but an effective framework cannot be built on fines alone.

If licensing procedures are unclear, or clean technology is expensive and financing tools are unavailable, simply increasing fines may not solve the problem.

A more effective policy combines:

Clear rules.
Effective supervision.
Deterrent penalties for violations.
Incentives for green investment.
Financing for factory modernization.
Technical assistance to facilities in regularizing their environmental position.

The ultimate objective is not to collect the largest possible amount in fines, but to prevent pollution in the first place.

The Role of Citizens and Civil Society

Responsibility does not fall solely on the government and companies. Individual behavior affects water and energy consumption, waste generation, and preservation of public spaces.

Citizens may also submit environmental complaints and reports through the designated channels of the Egyptian Environmental Affairs Agency, while universities, civil society organizations, and the media play a role in monitoring, awareness, and scientific research.

However, civil society participation should be based on accurate data and technical expertise so that public oversight becomes an element supporting enforcement rather than a source of inaccurate information.

The Role of the Office of Dr. Mostafa El Rouby – Attorneys and Legal Consultants

The Office of Dr. Mostafa El Rouby – Attorneys and Legal Consultants believes that environmental law is no longer a field separate from corporate law, investment law, contracts, maritime transport, and real estate.

The viability of an investment decision may change completely because of an environmental obligation that was not examined from the outset, while a commercially successful acquisition may become a burden if undiscovered pollution liabilities or violations are transferred with the company.

Areas of legal support required by clients in this field include:

Reviewing environmental approvals and environmental impact assessment studies.
Conducting environmental legal due diligence on projects and acquisition transactions.
Reviewing waste management and transportation contracts.
Drafting environmental liability provisions in construction, operation, and supply contracts.
Dealing with inspection decisions and environmental compliance plans.
Providing advice to coastal, industrial, and maritime projects.
Examining the legal aspects of emissions reduction projects and carbon certificates.
Managing disputes relating to pollution and environmental damage.

As a general rule, involving legal counsel at the project design stage is far less costly than involving counsel after a violation occurs or operations are suspended.

A Shared Responsibility Toward the Future

The Egyptian experience confirms that environmental protection cannot be achieved through a single law. There are the Environment Law, the Waste Management Law, the Water Resources Law, rules protecting coastlines and nature reserves, as well as climate policies and Egypt’s international obligations.

The real challenge is to bring these instruments together within a coherent implementation framework that permits development and investment without transferring their environmental costs to future generations.

The private sector must also move from the concept of “compliance at the time of inspection” toward the concept of continuous environmental management, so that energy efficiency, water use, waste management, and emissions become part of the company’s day-to-day management decisions.

Conclusion

Earth Day provides an opportunity to remember that the relationship between law and the environment has changed profoundly. Environmental protection is no longer a peripheral issue addressed after the development process has been completed, but has become one of the conditions of development itself.

Egypt has taken important legislative steps since the issuance of Environment Law No. 4 of 1994, through the amendments of 2009 and 2015, followed by Waste Management Regulation Law No. 202 of 2020, the development of environmental impact assessment and inspection systems, the launch of the National Climate Change Strategy 2050, and the voluntary carbon market.

However, the strength of the framework is measured not by the number of laws, but by its ability to prevent harm before it occurs, hold violators accountable, assist serious projects in achieving compliance, and turn environmental protection into a competitive element in the economy.

Accordingly, environmental law in Egypt is entering a new phase: one in which the environment moves from being an item in a licensing file to becoming a fundamental element of investment, financing, trade, and risk management.

Dr. Mostafa El Rouby emphasizes that protecting natural resources and the citizen’s right to a sound environment is not the responsibility of the State alone, but a shared responsibility among the legislature, administration, judiciary, companies, and society, because development that consumes the resources of the future to achieve present-day gains cannot be described as sustainable development.

Dr. Mostafa El Rouby Writes in Akhbar El Yom Newspaper – On International Earth Day