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New Industries Allowed to Use Coal

New Industries Allowed to Use Coal
On 28 February, the Prime Minister issued a decree which amended the Executive Regulations of the Environment Law to allow new industries to use coal (the "Decree").[1] The recent amendment (the “Amendment”) permits “industries that employ coal as an input in their industrial operations, rather than as a source of energy”, to use coal. The authorization to use coal is conditioned on adherence to the detailed environmental requirements and restrictions found in Annexes 6 and 12 of the Executive Regulations. This Amendment affects a wide range of industrial processes and products in which coal is used as an input, such as the sugar industry, water filters, gas masks, as well as a range of chemical products. The new Amendment takes effect as of 29 February 2016.
Background
In April 2015, the Prime Minister issued a decree introducing significant amendments to the Executive Regulations of the Environment Law.[2] The amendments regulated the use of coal as a source of energy, following a heavily-debated decision by the Cabinet of Ministers in April 2014 to start relying on coal. The April amendments placed emphasis particularly on environmental safeguards related to the import, storage, transport and use of coal. The amendments differentiated between the use of coal for energy-intensive industries, such as the cement industry, and its use for generating electricity. The Amendment added Annex 12, which listed rules and standards related to the import, transport and use of coal, as well as specifications of the permitted types of coal and its conditions of use in cement factories and in power plants. The April 2015 amendments allowed five specific sectors to use coal, pending their adherence to a number of restrictions and safeguards detailed in Annex 12. These included the cement clinker industry, electricity producers, coke producers, steel, and basic aluminium. In addition to this set list, the amendments also allowed the Prime Minister to issue further decisions to allow other entities to import and use coal.
The New Amendment
In this context, the recent Prime Minister’s Decree added a new type of industries to the list of industries that are allowed to use coal, in accordance with the Executive Regulations. The Amendment will allow the use of coal for “industries that utilize coal as input in their industrial operations rather than as a source of energy”, provided that they adhere to the environmental requirements set out in Annexes 6 and 12 of the Executive Regulations. While the Executive Regulations contain specific rules for some industries and activities (e.g. cement industries and coal-based power plants), there are no specific environmental regulations for the use of coal as an industrial input. Nonetheless, the general environmental regulations are still applicable for this newly added sector, or more specifically for all the sectors which use coal as an industrial input. Most importantly, Annex 12 requires in unequivocal language that the Egyptian Environmental Affairs Agency approve the environmental impact assessment reports that must be provided by any entity before the use of coal. The Annex also requires the entity using coal to present an annual report on environmental impact in order to renew the license to use it. 
Conclusion
The introduction of a new sector to the list of sectors that are permitted to use coal did not generate as much controversy and debate as was the case when the April 2015 amendments were issued. This may be because the most hazardous environmental impact related to coal is usually tied with the use of coal as fuel, rather than an input in industrial operations. Nonetheless, this is as an apt reminder of the importance of the 2015 amendments to the Executive Regulations of the Environment Law.   [1] Prime Minister Decree No. 544/2016 amending Decree No. 338/1995, Official Gazette, Issue No. 8 (bis), 28 February 2016. [2] Prime Minister Decree No. 964/2015 amending Decree No. 338/1995, Official Gazette, Issue No. 16 (bis) (a), 19 April 2015.
On 28 February, the Prime Minister issued a decree which amended the Executive Regulations of the Environment Law to allow new industries to use coal (the "Decree").[1] The recent amendment (the “Amendment”) permits “industries that employ coal as an input in their industrial operations, rather than as a source of energy”, to use coal. The authorization to use coal is conditioned on adherence to the detailed environmental requirements and restrictions found in Annexes 6 and 12 of the Executive Regulations. This Amendment affects a wide range of industrial processes and products in which coal is used as an input, such as the sugar industry, water filters, gas masks, as well as a range of chemical products. The new Amendment takes effect as of 29 February 2016.
Background
In April 2015, the Prime Minister issued a decree introducing significant amendments to the Executive Regulations of the Environment Law.[2] The amendments regulated the use of coal as a source of energy, following a heavily-debated decision by the Cabinet of Ministers in April 2014 to start relying on coal. The April amendments placed emphasis particularly on environmental safeguards related to the import, storage, transport and use of coal. The amendments differentiated between the use of coal for energy-intensive industries, such as the cement industry, and its use for generating electricity. The Amendment added Annex 12, which listed rules and standards related to the import, transport and use of coal, as well as specifications of the permitted types of coal and its conditions of use in cement factories and in power plants. The April 2015 amendments allowed five specific sectors to use coal, pending their adherence to a number of restrictions and safeguards detailed in Annex 12. These included the cement clinker industry, electricity producers, coke producers, steel, and basic aluminium. In addition to this set list, the amendments also allowed the Prime Minister to issue further decisions to allow other entities to import and use coal.
The New Amendment
In this context, the recent Prime Minister’s Decree added a new type of industries to the list of industries that are allowed to use coal, in accordance with the Executive Regulations. The Amendment will allow the use of coal for “industries that utilize coal as input in their industrial operations rather than as a source of energy”, provided that they adhere to the environmental requirements set out in Annexes 6 and 12 of the Executive Regulations. While the Executive Regulations contain specific rules for some industries and activities (e.g. cement industries and coal-based power plants), there are no specific environmental regulations for the use of coal as an industrial input. Nonetheless, the general environmental regulations are still applicable for this newly added sector, or more specifically for all the sectors which use coal as an industrial input. Most importantly, Annex 12 requires in unequivocal language that the Egyptian Environmental Affairs Agency approve the environmental impact assessment reports that must be provided by any entity before the use of coal. The Annex also requires the entity using coal to present an annual report on environmental impact in order to renew the license to use it. 
Conclusion
The introduction of a new sector to the list of sectors that are permitted to use coal did not generate as much controversy and debate as was the case when the April 2015 amendments were issued. This may be because the most hazardous environmental impact related to coal is usually tied with the use of coal as fuel, rather than an input in industrial operations. Nonetheless, this is as an apt reminder of the importance of the 2015 amendments to the Executive Regulations of the Environment Law.   [1] Prime Minister Decree No. 544/2016 amending Decree No. 338/1995, Official Gazette, Issue No. 8 (bis), 28 February 2016. [2] Prime Minister Decree No. 964/2015 amending Decree No. 338/1995, Official Gazette, Issue No. 16 (bis) (a), 19 April 2015.