Egypt’s FRA sets new rules for carbon certificate trading

The Egypt’s Financial Regulatory Authority (FRA) has issued on Tuesday the decree No. 1732 of 2024, setting stringent conditions for brokerage firms to trade in carbon reduction certificates.

Firms must have a minimum capital of 15 million Egyptian pounds ($309,907) and meet other requirements, including providing technological infrastructure and appointing a trained officer for trading.

This move aims to accelerate the activation of the African voluntary carbon market and positions Egypt as a leader in carbon reduction efforts.

The new regulations also require companies to implement data protection measures, offer electronic systems for trading, and maintain accurate records of their transactions. The Authority will review applications within a week, with non-responses considered rejections.

The latest decision follows previous steps by the FRA to establish and regulate the voluntary carbon market, including recent amendments to the Capital Market Law and the formation of a supervisory committee.

Attribution: The Egyptian Cabinet