EGX executes sixth carbon credit transaction

Egypt’s stock exchange executed its sixth carbon credit transaction on Monday, trading 500 certificates — each representing to one ton of carbon dioxide equivalent (CDE) — at 1,000 Egyptian pounds per unit, a statement by the Egyptian Exchange (EGX) said.

The deal brings the total volume of carbon credits traded since the platform’s launch on August 13, 2024, to 5,500 certificates across six transactions.

The EGX said the milestone reflects its ongoing leadership in sustainable finance, dating back to 2010 with the launch of its sustainability index. It joined the United Nations Sustainable Stock Exchanges (SSE) initiative in 2012 and the World Federation of Exchanges’ Sustainability Working Group in 2014. It has chaired the African Securities Exchanges Association’s Sustainability Committee since 2018.

In December 2023, EGX announced the readiness of its trading platform for carbon credit transactions. The system, developed by Egypt for Information Dissemination — EGX’s tech arm — allows for multiple trading mechanisms including English and Dutch auctions and pre-arranged deals. Settlement is handled by Taswyat, EGX’s clearing services subsidiary.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser