https://arab.news/89xzw
- New market will facilitate the registration, issuance, and trading of carbon credits
- It marks a crucial step toward both economic and environmental sustainability in Egypt
CAIRO: Egypt has launched its voluntary carbon trading market — the first in the country and in Africa.
The market allows companies to issue and trade voluntary carbon certificates in Egypt and Africa, which can be bought by other companies wanting to offset their emissions.
Speaking at a ceremony to celebrate the achievement, Egypt’s Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat said this new market will facilitate the registration, issuance, and trading of carbon credits, marking a crucial step toward both economic and environmental sustainability in Egypt.
The event, held at the Financial Regulatory Authority’s headquarters in the Smart Village, was attended by key figures including Mohamed Farid, FRA chairman; Environment Minister Yasmine Fouad, Minister of Investment and Foreign Trade Hassan Khatib, Agriculture Minister Alaa Farouk, and Minister of Parliamentary and Legal Affairs Mahmoud Fawzy, along with various private sector and business representatives.
Al-Mashat emphasized that this initiative is a result of collaborative efforts among various stakeholders, including development partners.
The Development Policy Financing Program, which the ministry has implemented in partnership with the World Bank, played a significant role by enhancing structural reforms and providing technical support to the Financial Regulatory Authority, thus paving the way for the establishment of this voluntary carbon trading market.
Al-Mashat emphasized that Egypt’s new voluntary carbon market positions the country as a regional leader in the green economy. She underscored that carbon markets serve as powerful tools to motivate companies to lower their emissions. By offering tradable carbon credits, these markets create incentives for businesses and investors to invest in emission reduction strategies.
The minister noted that beyond their role in emission reduction, carbon markets are a crucial mechanism for mobilizing financing for green transformation. This approach aligns with the innovative financing models highlighted in the “Sharm El-Sheikh Guidebook for Just Financing,” which Egypt introduced at the COP27 Climate Conference. Specifically, this model is featured in the guidebook’s section on blended finance, reflecting its capacity to generate financial returns while advancing climate action.
Al-Mashat highlighted that the creation of Egypt’s carbon credit trading market aligns with key recommendations from development partners. The World Bank Group's Country Climate and Development Report from November 2022 underscored the necessity of a carbon credit market as a vital component of Egypt’s strategy for a low-carbon future. Similarly, the OECD’s report on “Green Growth Policies in Egypt,” part of the country program with the government, endorsed the establishment of a carbon trading market on the Egyptian stock exchange. This recommendation aims to engage the private sector in climate action and to incentivize Egyptian companies to invest in emission reduction and mitigation projects.