Egyptian voluntary carbon market closes 1st futures contract – FRA chief

Egypt’s voluntary carbon market witnessed on Tuesday the conclusion of its inaugural futures contract, market regulator chief announced during the market’s official launch ceremony.

Mohamed Farid, Chairman of the Financial Regulatory Authority (FRA), said the contract is intended to finance projects that generate carbon credits.

Farid also mentioned that the next phase will involve incorporating certificates for new and renewable energy projects, allowing these initiatives to benefit from this new market. Additionally, he announced the successful completion of the first issuance, registration, and trading process through the Egyptian Exchange (EGX).

Farid called on key government ministries and the business community to actively participate in the new carbon market. He emphasized the importance of fostering a robust market by stimulating both supply and demand for carbon credits. By doing so, the market can become a catalyst for sustainable economic growth.

Earlier this week, the FRA, in collaboration with the Ministry of Environment, completed all regulatory and procedural requirements for registering carbon emissions reduction projects and launched the first regulated voluntary carbon credit market in Egypt and Africa.

The new carbon market empowers project developers and financiers to generate revenue by issuing carbon credits for their emissions reduction initiatives. These credits will be traded on the Egyptian Exchange, attracting both domestic and international investors. This innovative approach is expected to significantly boost investment in sustainable projects and accelerate Egypt’s transition to a low-carbon economy.

Attribution: Amwal Al Ghad Arabic