Mon, 23 Oct 2023 - 04:14 GMT
Mon, 23 Oct 2023 - 04:14 GMT
Cairo – October 23, 2023: Egypt’s Financial Regulatory Authority (FRA) recently held a meeting to review the progress of the upcoming launch of the voluntary market for trading carbon certificates, as well as explore ways to accelerate the market’s activation and launch.
FRA’s Chairman of the Board of Directors Mohamed Farid underscored the importance of establishing and activating the voluntary market for trading carbon certificates, adding that it aims to encourage businesses to reduce emissions through adaptation and mitigation projects.
Attending the meeting with Farid were key figures from the Egyptian Stock Exchange, the Tawsiyat Company, Ahmed Rushdi, Executive Director of the Regional Center for Sustainable Finance, Mohamed Ayad, Director of the authority's Media Center, Mahmoud Jibril, Head of the Central Administration for Corporate Finance, and officials from relevant authority departments.
According to an official statement by FRA, representatives from 35 companies engaged in activities related to carbon certificate trading were also in attendance.
The FRA chairman reviewed the implemented steps ahead of preparation for the market’s launch. The meeting also delved into the recent developments related to the Egyptian Stock Exchange and the Tawsiyat Clearing Services Company in preparation for the market's launch to help businesses align with international requirements.
Farid stressed that reducing carbon emissions is now essential for global trade, pointing out that the FRA created guidelines for entities involved in carbon emission reduction projects and certification, as well as for the registration of Egyptian and foreign entities.
The FRA’s guidelines were created using recommendations from the Committee for Supervision and Control of Carbon Emission Reduction Units, which includes representatives from the Ministry of Environment, the Egyptian Stock Exchange, and experts in the field.
Representatives from the 35 companies expressed a strong desire to participate in the market, the statement wrote, adding that several discussions were held with FRA officials to address their inquiries and to prepare specialized training programs and workshops.
FRA’s chairman pointed out that the voluntary market for trading carbon certificates is a platform that can help businesses in Egypt and Africa engage in activities to reduce carbon emissions and benefit from issuing and selling certificates. It would support companies in offsetting emissions that are difficult to reduce, and it requires well-organized and supportive regulatory controls to ensure the market's successful launch and growth.
The platform will also enhance companies' ability to develop eco-friendly practices in their journey towards carbon neutrality.