Back to the complete issue
Monday, 29 October 2018

When government policy works: The white cab program slashed Egypt’s carbon dioxide emissions by 310k tonnes in 2013-2017

** #2 When government policy works: The white cab program slashed Egypt’s carbon dioxide emissions by 310k tonnes in 2013-2017: A government scheme to scrap and recycle old taxis in Egypt led to a 310k ton decrease in Egypt’s carbon dioxide emissions between 2013 and 2017, the World Bank said on Thursday. The WB is expecting emission reductions to reach 350k tons by the end of this calendar year. The program took some 45k aging taxis off the streets by providing drivers subsidized financing for modern, fuel-efficient, locally assembled vehicles.

Background: In a bid to combat air pollution, Egypt passed a new traffic law in 2008 that banned renewing licenses of taxis and microbuses that were over 20 years old. To facilitate the transition for cab drivers, the government then allowed taxi owners affected by the law to turn in their vehicles for scrap and buy new vehicles installments. The government at the time lined up World Bank assistance through its Carbon Partnership Facility (CPF). The WB committed up to USD 8.3 mn in funding for the initiative through to 2021.

Rollout to other governorates? The program, originally focused squarely on Cairo, could roll out in the future to other governorates, the World Bank suggests, and is being studied by other African governments.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.