FRA forms advisory group to strengthen Egypt's voluntary carbon market

This initiative aims to enhance Egypt’s voluntary carbon market, expanding its impact beyond local and regional borders and positioning it as a model for other countries to adopt.

The formation of this advisory group follows the FRA’s successful launch of Egypt and Africa’s first voluntary carbon market in August 2024.

The market, organized and supervised by financial market regulators, was introduced with the participation of six ministers in a push to promote green energy initiatives.

In addition to the advisory group, the FRA has created the CCRC, which will oversee carbon emission reduction units.

The committee, chaired by the head of the FRA, includes representatives from the FRA, the Ministry of Environment, the Egyptian Stock Exchange, and carbon market experts.

It will set the rules for issuing, monitoring, and verifying carbon credits, ensuring transparency and defining the criteria for selecting verification and certification bodies for carbon reduction projects.

This regulatory framework is part of Egypt’s broader strategy to develop regulated carbon markets. It aligns with international efforts to drive global carbon neutrality while ensuring market stability.

These steps are also consistent with the announcement made at COP 27 regarding Egypt’s commitment to establishing voluntary carbon markets.

The advisory group comprises 13 members with local and international expertise in carbon emission reduction, climate change, sustainable development, and clean energy.

The group will assist the CCRC by providing technical advice, studying relevant topics, and supporting the committee in fulfilling its responsibilities.

Members of the advisory group are appointed for a one-year renewable term based on nominations from the committee’s chairperson.

The advisory group will convene at the invitation of the committee chair whenever necessary.

What to expect?
 

 Meetings will be conducted using modern communication methods. Decisions are valid only if a quorum of more than half the members, including the chairperson or their deputy, is present. Decisions will be made by majority vote, with the chairperson’s vote prevailing in case of a tie.

The advisory group will present its recommendations to the CCRC for appropriate action and may be tasked with specific assignments. Although the committee chair or their delegate may attend the advisory group’s meetings, they will not have voting rights. The group may also invite external experts to participate in the meetings as needed, though these invitees will not have voting rights.

The formation of the advisory group and the oversight committee further strengthens Egypt’s commitment to reducing greenhouse gas emissions.

Egypt plans to reduce emissions from electricity generation, transmission, and distribution by 37 percent by 2030.

Establishing these bodies is crucial in supporting Egypt’s broader environmental and climate goals, ensuring that the country remains on track to meet its targets for global sustainability.