The Financial Regulatory Authority (FRA) has approved three entities to be registered on the list of verification and certification bodies for carbon emission reduction projects, for the first time in the Egyptian market. This is part of the Authority’s efforts to activate the voluntary carbon market in Egypt.
The approved entities are the Egyptian Center for Organic Agriculture (COAE) and TUV NORD Egypt, which are registered on the list of Egyptian verification and certification bodies, and TUV NORD Cert, which is registered on the list of foreign verification and certification bodies. The registration of the foreign entity is valid for one year from the date of the approval.
Mohamed Farid, Chairperson of FRA, said that this is the first time that the Authority has issued approvals for verification and certification bodies for carbon emission reduction projects in the Egyptian market. He added that the Egyptian entities must meet the following requirements: be registered as a legal person, obtain an ISO accreditation certificate for verification and certification institutions, and obtain an ISO accreditation certificate for verification and certification work for carbon reduction projects. The foreign entity must also meet one of the following requirements: be one of the internationally recognized operational entities according to the standards of the Secretariat of the United Nations Framework Convention on Climate Change, be one of the bodies recognized within the Paris Agreement, or be accredited in one or more of the international voluntary carbon registers.
Farid emphasized that reducing carbon emissions is no longer a “luxury” but a basis for global trade, and that FRA is working to support the state’s efforts to achieve carbon neutrality in line with international standards and Egypt’s 2030 vision for sustainable development.
Prime Minister Mostafa Madbouly issued Resolution No. (4664) of 2022, to amend some provisions of the executive regulations of the Capital Market Law, which include the establishment of a voluntary market for trading carbon emission reduction certificates on the Egyptian Exchange. These certificates are considered tradable financial instruments. A committee, called the “Supervision and Control Committee for Carbon Emissions Reduction Units,” is formed by a decision of the Authority’s Board of Directors. The committee is responsible for setting the rules for issuing and trading carbon emission reduction certificates and supervising and monitoring them. The decision that forms the committee determines its powers and work system.
The Authority is also preparing a database to register projects that have been issued carbon emission reduction certificates, and it provides the Ministry of Environment with those projects every month. The Egyptian Exchange issues rules and procedures for trading these certificates, subject to the approval of the Authority.
