Financial Regulatory Authority reveals regulations for entry to new carbon market

Egypt’s Financial Regulatory Authority (FRA) has announced the regulations regarding the carbon credit verification and certification process for joining the upcoming voluntary carbon market.

During last year’s COP27 conference, Egypt revealed that it would launch Africa’s first voluntary carbon market, allowing companies in Egypt and Africa to trade certified carbon credits.

According to an official statement by the FRA, the authority is working on creating a list of local and foreign institutions capable of verifying and approving carbon credits according to standards and controls issued by the authority.

Head of the FRA Mohamed Farid stated that the carbon trading platform will enable organizations operating in Egypt and Africa to engage in carbon emission reduction activities to achieve carbon neutrality.

Farid added that establishing the new list of verification and certification bodies is a vital step that complements the Egyptian government's efforts to reduce emissions and mitigate climate change. The list will ensure an effective mechanism for measuring, recording and documenting environmental projects that work to reduce carbon emissions, the FRA statement pointed out.

Registered companies will have to renew their certification annually.

To register, companies must acquire ISO accreditation certificates required by the certification institutions (SO-14065:2020 or ISO/IEC 17029), as well as those needed for work for carbon reduction projects (ISO-14064:3), while those managing the company’s trade are required to pass a separate certification carried out by FRA.

For foreign verification and certification bodies, the FRA notes that these companies must be one of the internationally recognized Designated Operational Entities (DOE) in accordance with the standards issued by the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC), is recognized under the Paris Agreement, or accredited in one or more international voluntary carbon organizations such as the Gold Standard, Verified Carbon Standard (VCS) Program, and the Global Carbon Council (GCC).