Egypt launches its voluntary carbon market, first in Africa

In a significant stride towards environmental sustainability and economic growth, Egypt unveiled its first regulated voluntary carbon market on Tuesday.

The new market will facilitate the registration, issuance, and trading of carbon credits, incentivising businesses and individuals to reduce their carbon footprints. By creating a platform for buying and selling these credits, Egypt aims to attract investments in clean energy projects and foster sustainable practices.

By establishing this carbon market, Egypt is positioning itself as a regional leader in climate action. The market is expected to attract domestic and international investors, stimulate green innovation, and create new job opportunities. Additionally, it will contribute to Egypt’s efforts in achieving its Nationally Determined Contributions (NDCs) to reduce greenhouse gas emissions.

The establishment of the carbon market aligns with Egypt’s Vision 2030 and the National Climate Change Strategy 2050. It is also in line with recommendations from international organisations such as the World Bank and OECD, which highlighted the need for a carbon market to stimulate private sector involvement in climate action.

The government is committed to supporting the market’s growth and ensuring its alignment with global standards. Collaborations with international partners, such as the European Union and the World Bank, are essential for building a robust carbon market ecosystem in Egypt.

With the potential to unlock significant funding for climate action and drive economic growth, Egypt’s carbon market is a beacon of hope for a sustainable future.

Attribution: The Egyptian Cabinet