The Egypt Financial Regulatory Authority issued a decision requiring companies operating in non-banking financial activities with issued capital or net equity above EGP 100 million to disclose their annual carbon emissions and compensate part of them through carbon certificates. Under Decision No. 36 of 2026, in-scope firms must prepare an annual carbon footprint report covering Scope 1 direct emissions and Scope 2 indirect emissions, measured in tonnes of carbon dioxide equivalent, and have the data reviewed and validated by verification and validation bodies accredited by the Authority. Around 20% of the emissions disclosed in the annual report must be offset through the purchase of carbon emissions reduction certificates registered in the Authority’s database for the regulated voluntary carbon market, with purchases completed within 90 days of submitting the report. Reports must be filed with the Authority by end-June 2026 and then annually in line with each company’s financial year-end, and compliance is set as a condition for maintaining the relevant licence. The decision enters into force the day after publication in the Official Gazette and on the Authority’s website.
Egypt Financial Regulatory Authority 2026-02-15
Egypt Financial Regulatory Authority mandates annual Scope 1 and Scope 2 carbon reporting and 20% offsets for large non-banking financial firms
The Egypt Financial Regulatory Authority mandates non-banking financial firms with capital or equity over EGP 100 million to disclose annual carbon emissions and offset 20% through carbon certificates. Decision No. 36 of 2026 requires firms to report Scope 1 and 2 emissions, validated by accredited bodies, and complete certificate purchases within 90 days of report submission. Compliance is necessary for license maintenance, effective immediately upon publication.