Climate Change and Corporate Regulation: A Critical Analysis of Egypt’s Legal and Regulatory Regime

Abstract

Corporations operating in African states generally have apathy to climate change/environmental regulation, owing to their weak economic bargaining strength in these states. Egypt is one of the African states suffering the disproportionate impacts of climate change and although it has drawn up several climate policy documents, it has not yet enacted a Climate Change Act and has a weak regulatory capacity to restrain adverse corporate climate change-impacting activities. This article critically analyses the legal/ regulatory regime in Egypt for regulating corporate participation in climate change mitigation and its effectiveness in addressing climate change challenges. It critically analyses the implementation of the Dilute Interventionism Model. It evaluates the required legislative framework, regulator, and technical expertise necessary for its successful implementation. This paper also highlights the importance of the Veto Firewall protection to maintain the independence of the sole independent regulator responsible for regulating the climate change activities of corporations. This paper argues that the Dilute Interventionism Model, in conjunction with the veto firewall paradigm, provides a practical and effective approach to regulating corporations. However, successful implementation will require political will, corporate compliance, and technical capacity. This paper provides policymakers, stakeholders, and interested parties in Egypt and elsewhere with useful insights for addressing climate change challenges.