Within the frame of UNEP's project on the Methodologies of Determining the Costs of Abatement of GHG emissions, a case study on Egypt was undertaken by the Technical Research Centre of Finland (VTT) in cooperation with the Egyptian Environment Affairs Authority (EEAA), together with an expert team from different Egyptian organizations. Both bottom-up and top-down approaches were used. Several measures/technologies, including energy conservation, fuel switching, use of renewable energy and material replacement, were considered to decrease CO2 emissions. It was found that most of the measures were cost-effective, as a considerable potential for energy conservation exists in Egypt. The impact of energy conservation measures on the economy of the country was found to be positive using a macroeconomic model.