(3 Minutes Read)
The Financial Regulatory Authority (FRA) has completed regulatory requirements to launch Egypt’s first regulated market for voluntary carbon reduction certificates.
Egyptian Prime Minister Madbouly said that his government is focused on implementing the State Strategy for Boosting National Industry in productive fields and further capitalizing on the developed infrastructure nationwide.
He explained that this would support localizing industries to meet domestic demand, reduce the import bill, and boost exports. Madbouly further said that the government is ready to offer support to improve work and productivity in various industrial companies and factories.
The Financial Regulatory Authority (FRA) has completed regulatory requirements to launch Egypt’s first regulated market for voluntary carbon reduction certificates. The Ministry of Environment and the FRA have established the required framework for achieving that. The Egyptian Exchange (EGX) has developed a trading platform for these certificates, according to an official statement from the FRA. However, the FRA statement did not disclose an official launch date.
Mohamed Farid, Chairman of the FRA, emphasized that the new regulated market represents a milestone in Egypt’s environmental and financial sectors.This market will allow the issuance, registration, and trading of carbon reduction certificates, offering a structured platform for implementing and financing carbon reduction projects.
Farid underscored that the new market supports Egypt’s broader efforts to reduce the carbon footprint for exported goods, and highlights the FRA’s commitment to accelerating the activation of the carbon market and reinforcing the Egyptian state’s ongoing efforts to reduce carbon emissions.
Through attracting both local and international investors, the initiative aims to enhance investment in sustainable projects and Egypt’s leadership in promoting sustainable economic growth.
Carbon certificates are tradable financial instruments using credits that represent a certain amount of carbon dioxide or other greenhouse gases (GHGs) – one credit represents one ton of CO2 or GHGs.
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These certificates will enable companies in Africa to sell certified carbon credits to companies seeking to offset their emissions. Through Egypt’s carbon market, the certificates will be issued to the developer of the emissions reduction project, according to the FRA.
