Egypt Financial Regulatory Authority (FRA) chair Mohamed Farid used a National Planning Institute seminar to outline the regulator’s work to establish Egypt’s first regulated voluntary carbon market, saying the regulatory and legislative framework is now complete and companies and other entities are invited to register voluntary carbon-reduction projects. The market is intended to support the issuance and exchange trading of carbon emission reduction certificates under capital-markets supervision. Farid described the build-out as including technical bases and methodologies for measuring carbon emissions aligned with international practices, informed by global standards and experience. He noted the market was launched in August 2024 and was preceded by amendments to the executive regulations of Capital Market Law No. 95 of 1992 to treat carbon emission reduction certificates as a financial instrument, the creation of a trading platform by the exchange, and the formation of a supervisory committee chaired by the FRA and including representatives from the Ministry of Environment, the exchange, and carbon-market experts. The FRA also set criteria for listing project verification and validation entities and has listed three to date (two local and one foreign), issued rules for listing and delisting carbon certificates on the Egyptian exchanges, set criteria for accrediting local voluntary carbon registries as electronic systems to issue, record and track certificate ownership transfers, and approved trading and settlement rules. The FRA directed interested parties to register projects via its website and highlighted the project design document as the first step in measuring a project’s carbon footprint and identifying emissions-reduction potential. It also flagged governance of the technology used to build and manage carbon registries as a key enabler of market effectiveness and said it is reviewing policies and procedures to ensure they remain fit for purpose.
Egypt Financial Regulatory Authority 2025-01-22
Egypt Financial Regulatory Authority says the regulatory framework for Egypt’s regulated voluntary carbon market is complete and invites project registration
The Egypt Financial Regulatory Authority (FRA) has finalized the framework for Egypt's first regulated voluntary carbon market, inviting entities to register carbon-reduction projects. Launched in August 2024, the market supports trading of carbon emission reduction certificates under capital-markets supervision. Amendments to Capital Market Law No. 95 of 1992 classify these certificates as financial instruments. The FRA has set project verification criteria, listed three entities, and approved trading and settlement rules, emphasizing the importance of technology governance for carbon registries.