Egypt closer to launch of carbon certificate market

Egypt is one step closer to launching its first regulated market for voluntary carbon reduction certificates in Africa, with the Financial Regulatory Authority (FRA) announcing the successful completion of regulatory requirements.

Mohamed Farid, Chairman of the FRA, emphasized that the new regulated market represents a milestone in Egypt’s environmental and financial sectors.

Farid underscored that the new market supports Egypt’s broader efforts to reduce the carbon footprint for exported goods, and highlights the FRA’s commitment to accelerating the activation of the carbon market and reinforcing the Egyptian state’s ongoing efforts to reduce carbon emissions.

In collaboration with the Ministry of Environment, the FRA has established the necessary framework, while the Egyptian Exchange (EGX) has developed a trading platform for these certificates, according to an official statement from the FRA.

The FRA statement did not disclose an official launch date.

This market will allow the issuance, registration, and trading of carbon reduction certificates, offering a structured platform for implementing and financing carbon reduction projects.

Through attracting both local and international investors, the initiative aims to enhance investment in sustainable projects and Egypt’s leadership in promoting sustainable economic growth.