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Egypt: Vehicle Scrapping and Recycling Program
(Carbon Partnership Facility)

UNFCCC Reference No.: 2897

The Egypt Vehicle Scrapping and Recycling Program of Activities (PoA) has been designed by the government of the Arab Republic of Egypt to support the enforcement of Traffic Law #121 (2008), which states that owners of mass transport vehicles that are greater than 20 years old are not eligible for new operating licenses or license renewal. “Mass transport vehicles” are henceforth defined to include: taxis, microbuses, trailer trucks, and buses. All vehicles implicated by the law are eligible under this PoA – and all vehicles that are not implicated by the law are not eligible. The Law was designed to accelerate the rate of fleet replacement, which would improve air quality (including the reduction of greenhouse gas emissions) and reduce the number of traffic accidents involving these older vehicles.

Because the Law does not specify how affected vehicles are to be disposed of, vehicle owners have strong incentives to either: a) sell vehicles to regions where the law does not apply; b) convert vehicles to private use (private vehicles are not affected by the Law); and/or c) dismantle the vehicles and sell the engines for use in other vehicles. Without a scrapping and recycling program component that ensures that the older vehicles are taken off the road and that the vehicle components are permanently (and safely) disposed of, the Law cannot have its intended impact on safety, air quality, and greenhouse gas mitigation.

The Egypt Vehicle Scrapping and Recycling PoA fills this gap, without contradicting other regulations. The PoA establishes a national program through which owners of taxis, microbuses, trailer trucks, and buses affected by the law may voluntarily surrender their vehicle for managed scrapping and recycling, in exchange for financial incentives that may be used towards the purchase of a new vehicle from a PoA or SSC-CPA participating vehicle dealer, under a closely monitored process.

The purpose of the PoA is to support the enforcement of Traffic Law #121 (2008), thereby improving air quality, reducing greenhouse gas emissions, and improving overall road safety in Egypt. The proposed PoA is a voluntary and coordinated action. There are no mandatory requirements in Egypt stipulating the scrapping and recycling of vehicles. Further, the vehicle owners may voluntarily opt into the PoA project activities.

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