12 projects get FRA approval to join carbon emissions reduction database

Cairo – September 4, 2024: The Financial Regulatory Authority (FRA) has given the greenlight to register 12 new projects in its carbon emissions reduction database, enabling them to soon trade on the new voluntary carbon market (AFRICARBONex).

Approved by the FRA’s Committee for the Oversight and Supervision of Carbon Emission Reduction Units, chaired by FRA head Mohamed Farid, is a significant step in Egypt's effort to combat climate change through regulated carbon trading.

The FRA’s approval supports the broader goal of bolstering Egypt’s first regulated market for voluntary carbon emission reduction certificates, which was launched in August.

The newly approved projects are part of the Voluntary Carbon Registry managed by the Egyptian Biodynamic Agriculture Association (EOL), marking it as the FRA's first locally accredited carbon registry.

This registry aims to guide developers in meeting standards for carbon reduction and allows for the issuance of certificates that can be traded via the Egyptian Exchange (EGX) platform.

Carbon Credits Registries, such as this one, are crucial for tracking and managing the ownership and trade of carbon reduction certificates.

The 12 newly registered projects are expected to produce around 13,291 carbon reduction certificates, representing a total reduction of approximately 13,300 tonnes of CO2 equivalent.

The projects span several Egyptian governorates, including Matrouh, Sohag, Qena, and others, with varying CO2 reduction contributions.

Since its launch, the voluntary carbon market has had several large trades such as 500 certificates sold to Isis Food Industries at EGP 1,040 each and 1,500 certificates purchased by DALTEX at $18 each.