Cairo – August 13, 2024: The Financial Regulatory Authority (FRA) launched Africa’s inaugural voluntary carbon market (VCM), announced FRA Chairman Mohamed Farid, initiating the issuance, registration, and trading of carbon emissions reduction certificates via the Egyptian Stock Exchange.
Trading started today, August 13th, with oversight provided by financial authorities in Egypt and across Africa.
Taking place at the FRA headquarters, the launch ceremony was attended by several key figures, including the Ministers of Planning, International Cooperation, Environment, Investment, Agriculture, and Land Reclamation, as well as the Chairman of the Egyptian Stock Exchange.
Farid presented the regulatory framework for registering carbon reduction projects, outlining the rules and procedures that will govern the market.
Minister of Environment Yasmine Fouad highlighted the significance of the voluntary carbon market in the context of global climate discussions. She emphasized that Egypt faces a challenging task at the upcoming COP29 climate conference, where it will represent developing countries in negotiating a global target for climate financing.
Fouad stressed the importance of ensuring that developing nations have access to fair financing mechanisms and are not burdened with the climate costs typically borne by larger, industrialized countries. She underscored that the new market aligns with Egypt’s commitment to advocating for effective climate finance solutions that support the green transition.
Hassan El-Khatib, Minister of Investment and Foreign Trade, praised the launch of the regulated carbon trading market as a strategic move to enhance Egypt’s attractiveness to both direct and foreign investments. He noted that the market's establishment would bolster investments in environmentally sustainable sectors and industries that are committed to reducing carbon emissions.
El-Khatib highlighted the market's potential to drive economic growth through attracting capital to green projects and fostering environmentally responsible practices.
Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat expressed that the launch of Egypt’s first organized voluntary carbon market represents a crucial step towards achieving both economic and environmental sustainability.
Al-Mashat praised the market as a tool that not only supports emission reductions but also facilitates green transformation by providing a platform for trading carbon credits, and will position Egypt as a regional leader in the green economy, offering a model for other countries to follow.
On August 11th, the FRA, in partnership with the Ministry of Environment, finalized all necessary regulatory and procedural requirements for the carbon market’s launch.
The FRA issued requirements for brokerage firms intending to trade carbon emission reduction certificates on July 23rd, and it released standards for the verification and certification of carbon credits for both local and international entities back in 2023.
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