The Financial Regulatory Authority (FRA), through its Committee for the Oversight and Supervision of Carbon Emission Reduction Units, chaired by Mohamed Farid, has approved registering 12 projects in its carbon emissions reduction database. These projects are part of the Voluntary Carbon Registry by the Egyptian Biodynamic Agriculture Association (EOL), accredited by the FRA.
The EOL Voluntary Carbon Registry is the first local carbon registry approved by the FRA. It aims to assist developers of voluntary reduction projects in adhering to the necessary standards and specifications for carbon emission reduction. Projects registered in the FRA’s database can issue certificates that are eligible for trading through the platform established by the Egyptian Exchange (EGX).
Voluntary carbon registries, known as Carbon Credits Registries, are centralized electronic systems that record, register, and track the ownership transfer sequence of carbon emission reduction certificates. These certificates result from implementing carbon reduction projects according to methodologies issued by standard-setting organizations.
This approval is part of the FRA’s ongoing efforts to establish Egypt’s first regulated market for trading voluntary carbon emission reduction certificates, which the authority launched last August. The newly registered projects will enable the trading of approximately 13,291 carbon reduction certificates, equating to a reduction of about 13,300 tonnes of carbon dioxide equivalent, across various projects.
The approval followed a detailed presentation by the registry team on the carbon emission reduction projects, which involved reclaiming and cultivating lands using the principles of the Love Economy, organic, and biodynamic farming.
The approved projects include a collective project in Matrouh over 1,529 feddans, reducing 2,340 tonnes of CO2, Sohag 155 feddans, reducing 1,483 tonnes of CO2, Qena 15 feddans, reducing 163 tonnes of CO2, Monufeya 52 feddans, reducing 451 tonnes of CO2, Luxor 31 feddans, reducing 270 tonnes of CO2, Minya (PGS Group) 390 feddans, reducing 745 tonnes of CO2, Kafr El-Sheikh 432 feddans, reducing 2,182 tonnes of CO2, Gharbeya 58 feddans, reducing 396 tonnes of CO2, Damietta 223 feddans, reducing 1,583 tonnes of CO2, Beni Suef 737 feddans, reducing 2,046 tonnes of CO2, Aswan 1,096 feddans, reducing 914 tonnes of CO2, and Assiut 81 feddans, reducing 718 tonnes of CO2.
The FRA launched Egypt’s first organized and regulated voluntary carbon market last August. Since then, three transactions have been executed on voluntary carbon emission reduction certificates. These included transactions between Isis Food Industries (buyer) and the Egyptian Biodynamic Agriculture Association (EBDA) (seller) through Beltone Securities Brokerage, with 500 certificates sold at EGP 1,040 each. Additionally, DALTEX purchased 1,500 certificates at $18 each, while VNV Advisory and SCB Environmental Markets conducted trades through CI Capital Securities Brokerage.
This initiative follows commitments made during COP 27 to empower developers and financiers of carbon reduction projects—whether agricultural, industrial, or other types—to issue carbon reduction certificates and sell them in dedicated trading systems. The goal is to attract new categories of local and international investors, thereby providing additional returns for project developers, boosting investment rates in these projects, and positioning Egypt as a leader in this field while promoting sustainable economic growth.
The new market was inaugurated following the issuance of Prime Ministerial Decree No. 4664 of 2022, which amended the executive regulations of Capital Market Law No. 95 of 1992 to classify carbon reduction certificates as financial instruments. The EGX was subsequently tasked with establishing the trading platform and a supervisory committee based on a proposal by the FRA’s Board of Directors.
To accelerate the activation of this new market, which is crucial in supporting Egypt’s carbon reduction efforts, the FRA has continued to drive progress. The authority issued a decision to regulate the registration standards for verification and validation bodies of carbon reduction projects. The committee subsequently conducted interviews to assess the capabilities and qualifications of applicants, resulting in the registration of three verification and validation bodies—two local and one international.
Furthermore, the FRA established rules for listing and delisting carbon reduction certificates on Egyptian exchanges, as well as standards for accrediting local voluntary carbon registries. These registries serve as centralized electronic systems that record, register, and track the ownership transfer sequence of carbon reduction certificates issued according to methodologies from standard-setting organizations. Simultaneously, the FRA approved trading rules for the Egyptian Exchange following extensive consultations and coordination, and finalized settlement rules for voluntary carbon certificates on Egyptian exchanges.
