The Egypt Financial Regulatory Authority (FRA) hosted a workshop with senior representatives from banks in Egypt to present the operation of Egypt’s regulated voluntary carbon market and to encourage greater banking-sector participation in emissions-reduction activity through the market. The FRA indicated that the regulatory and legislative framework for the market is now complete and invited companies and other entities to register voluntary carbon-reduction projects. The framework treats carbon emission reduction certificates as tradable financial instruments, with each carbon credit representing one tonne of carbon dioxide equivalent, and issuance occurring after verification and validation against internationally recognised methodologies by approved verifiers. Implementation steps described include amendments to the executive regulations of Capital Market Law No. 95 of 1992 to support classification of the certificates as financial instruments, establishment of a trading platform on the Egyptian Exchange, and creation of a Committee for Supervision and Oversight of Carbon Emission Reduction Units (CCRC) chaired by the FRA’s chair and including the Ministry of Environment, the Egyptian Exchange and market experts. The FRA also highlighted measures covering the listing of verification and validation bodies, rules for listing and delisting carbon certificates on Egyptian exchanges, accreditation standards for local voluntary carbon registries, and exchange trading and settlement rules, alongside a focus on technology governance for carbon registry infrastructure. To support the CCRC, the FRA established an advisory group of 13 local and international experts for a one-year term that is renewable. The FRA reported that its work has resulted in nine decisions forming the market framework, six voluntary carbon registries, more than 160,000 registered carbon certificates and around 26 registered projects across six project categories, and it pointed to preparations for the first auction in the voluntary carbon market as well as development of a regulatory framework for renewable energy certificates (I-RECs).
Egypt Financial Regulatory Authority 2025-02-04
Egypt Financial Regulatory Authority completes regulatory framework for Egypt’s regulated voluntary carbon market and calls for project registration
The Egypt Financial Regulatory Authority (FRA) finalized the framework for Egypt's voluntary carbon market, treating carbon emission reduction certificates as tradable financial instruments. Key developments include Capital Market Law amendments, a trading platform on the Egyptian Exchange, and a Committee for Supervision of Carbon Emission Reduction Units. The FRA reported over 160,000 registered carbon certificates and 26 projects, with preparations for the first auction and a renewable energy certificates framework.