The Egyptian Exchange (EGX) signed a memorandum of understanding (MoU) with the Global Carbon Council, to expand the scope of regional climate action in terms of registering and trading these certificates and promoting their markets regionally and globally.
This MoU came after the launch of Africa’s first regulated voluntary market for trading certified emission reductions (CERs), allowing investors to diversify their investment portfolios by increasing the supply of CERs.
Chairperson of EGX Ramy El-Dokany said that the activation of the MoU will help build a market with a high degree of integrity and transparency in the region, and build a comprehensive system that enhances the leadership of EGX and provides its investors with more non-traditional investment products and tools.
He added that this comes within the country’s strategy to move towards a green economy and sustainable development. EGX will enhance the international standing of the Global Carbon Council in Africa and thus raise awareness among governments, companies and investors, of the importance of using market tools to stimulate actions and activities to confront climate change.
Yousef Al-Horr, the founding president of the Global Carbon Council, explained that collaboration between carbon registries and carbon exchanges is critical to building a marketplace that promotes climate action and delivers integrated emissions mitigation outcomes.
He pointed out that these two mechanisms will work in harmony to enhance transparency, trust and growth for carbon markets in order to contribute to building a more sustainable and low-carbon future. He also explained that the Council’s cooperation with the EGX will create a long-term effect that encourages increased liquidity in the markets to finance projects to reduce carbon emissions.
