FRA forms new committee for voluntary carbon market to boost country’s sustainability efforts

Cairo – January 23, 2025: As part of Egypt's broader strategy to enhance its voluntary carbon market, the Financial Regulatory Authority (FRA) recently formed the Committee for Supervision of Carbon Emission Reduction Units (CCRC).

The voluntary carbon market is a system that allows businesses, organizations, and individuals to voluntarily buy and sell carbon credits to offset their greenhouse gas emissions.

Comprised of 13 members, the committee will offer expert technical advice on critical areas such as carbon emission reduction, sustainable development, and clean energy.

The CCRC, chaired by the head of the FRA, is composed of representatives from the FRA, the Ministry of Environment, the Egyptian Stock Exchange, and experts in the carbon market. Members will serve renewable one-year terms, chosen based on nominations from the committee’s chairperson.

Launched in August 2024, Egypt’s voluntary carbon market is the first of its kind on the African continent to be governed by financial regulatory bodies.

The market, which is supervised by financial regulators, was introduced with the backing of six ministers as part of a broader initiative to promote green energy and sustainability. The advisory group and CCRC are expected to play a critical role in supporting these efforts.

The new committee will oversee the issuance, monitoring, and verification of carbon credits, ensuring transparency and setting criteria for selecting bodies to verify and certify carbon reduction projects.

These efforts align with Egypt’s larger environmental goals, particularly its commitment to reduce emissions from electricity generation, transmission, and distribution by 37 percent by 2030.

The advisory group will provide vital technical advice to the CCRC, contributing to studies and assisting in the development of policies that support the voluntary carbon market.

The creation of both the advisory group and the CCRC further strengthens Egypt's commitment to global sustainability and carbon neutrality, building on the country's pledges made at COP 27.