The Financial Regulatory Authority (FRA) has announced the formation of an advisory group to assist the Oversight and Supervision Committee for Carbon Emission Reduction Units. The group will provide expert technical advice on key areas related to the committee’s responsibilities, which include carbon emission reduction, sustainable development, and clean energy.
In a statement released on Wednesday, the FRA outlined that the advisory group will comprise 13 members, selected for their expertise in climate change and environmental sustainability from both local and international backgrounds. Members will serve renewable one-year terms, chosen based on nominations from the committee’s chairperson.
The group’s primary function is to offer technical consultations on the committee’s work, helping to assess and develop policies, and advise on relevant topics as assigned. This initiative is part of the FRA’s broader efforts to promote carbon neutrality and position Egypt’s voluntary carbon market as a regional and international model.
Launched in August, Egypt’s voluntary carbon market is the first of its kind on the African continent to be regulated by financial oversight bodies. The FRA is committed to ensuring the market’s stability and integrity while accelerating its development. Additionally, the FRA has established the first committee to supervise and regulate Carbon Emission Reduction Units (CERUs), which includes setting criteria for the verification and validation of carbon reduction projects.
The advisory group’s recommendations will be submitted to the Oversight and Supervision Committee, which will decide on appropriate actions. The committee may also assign specific tasks to individual advisory group members. The group will meet at the request of the committee’s chairperson, either in person or through virtual platforms, with decisions made by majority vote. The chairperson holds the tie-breaking vote, and the committee’s chairperson or a designated representative may attend meetings without voting rights.
This step aligns with Egypt’s broader sustainability initiatives, particularly its commitment to COP27 goals. In addition to establishing a voluntary carbon market, Egypt has amended regulations to recognize carbon emission reduction certificates as financial instruments and set rules for their listing on the Egyptian exchanges. The FRA has issued nine regulatory decisions shaping the voluntary carbon market framework, including the establishment of five registries and approval of four verification and validation entities.
To date, over 145,000 carbon certificates have been registered across 21 projects in sectors such as sustainable agriculture, afforestation, clean energy, and water purification. These efforts reflect the FRA’s ongoing commitment to advancing sustainable development and contributing to global carbon reduction goals.
