Cairo: The Financial Regulatory Authority (FRA) has approved two new projects to register on the voluntary carbon market, AFRICARBONex. The approval, finalized during the FRA’s ninth meeting of the Supervision and Oversight Committee on Carbon Emission Reduction Units, represents a significant milestone in Egypt’s evolving voluntary carbon market.
According to State Information Service Egypt, the two projects-Oman Blue Carbon from the Sultanate of Oman and Solar DC from India-are now registered in the FRA’s carbon emissions reduction database. The Oman Blue Carbon project focuses on agricultural activities and aims to reduce emissions by 130,723 tons of CO2 equivalent annually. Meanwhile, the Solar DC project, part of the renewable energy sector, is expected to reduce emissions by 16,692 tons of CO2 equivalent per year.
With these new additions, the FRA’s database has expanded to include a total of 28 voluntary carbon reduction projects. More than 170,000 carbon credits are now available for trading on the FRA’s carbon credit trading platform. These credits can be purchased by investors aiming to offset their carbon emissions, further boosting Egypt’s position as a leader in environmental sustainability in the region.
The meeting also approved Ampere, a Jordanian company, as a recognized international verification and certification body for carbon emission reduction projects. This approval enables the company to verify and certify projects that contribute to reducing Egypt’s carbon footprint, expanding the range of experts involved in the carbon market.
Mohamed Farid, Chairman of the FRA, emphasized the importance of these new projects. He noted that their registration supports the FRA’s mission to accelerate the growth of the voluntary carbon market in Egypt. As the first regulated voluntary carbon market in the region, Egypt’s market aims to provide a platform for the sale and trading of carbon reduction certificates across various sectors, including agricultural, industrial, and renewable energy.
‘The registration of these new projects reaffirms our commitment to enhancing the voluntary carbon market,’ Farid stated. ‘By enabling the issuance and trading of carbon reduction certificates, we are not only supporting environmental sustainability but also attracting new investments into Egypt’s green economy.’
Farid further highlighted that the FRA’s initiatives align with Egypt’s broader goals of achieving carbon neutrality and reducing emissions, which is a global priority to combat climate change. Addressing carbon emissions is crucial for mitigating the impacts of global warming, including natural disasters with economic consequences.
These efforts are consistent with Egypt’s commitments made at COP27, where the country pledged to actively reduce its carbon emissions and promote sustainable development. The FRA aims to attract both local and international investors to the carbon market, offering opportunities to invest in carbon reduction projects that yield financial and environmental benefits.
The launch of Egypt’s voluntary carbon market began with a decree from the Prime Minister in 2022, officially recognizing carbon reduction certificates as a financial instrument. This move paved the way for the Egyptian Stock Exchange to set up a dedicated platform for trading these certificates, providing a transparent and regulated environment for carbon credit transactions.
To streamline the process, the FRA has implemented clear guidelines for registering verification and certification entities, ensuring that only qualified bodies oversee carbon emission reduction projects. This includes the registration of both local and international entities, increasing the market’s credibility and effectiveness.
Additionally, the FRA has introduced regulations for listing and delisting carbon reduction certificates on the Egyptian Stock Exchange. These regulations also cover the accreditation of local voluntary carbon registries, which are electronic systems used to track and manage the transfer of carbon credits, ensuring transparency and accountability in the carbon trading process.
The FRA’s continued efforts in expanding and enhancing Egypt’s voluntary carbon market are positioning the country as a regional leader in sustainable investment practices. By promoting carbon reduction projects, Egypt is not only working towards its environmental goals but also driving economic growth through new investment opportunities in green and renewable sectors.