The Financial Regulatory Authority (FRA), through its Supervisory and Oversight Committee on Carbon Emission Reduction Units, has approved the registration of two new carbon reduction projects in its database. The decision was made during the committee’s ninth meeting on 23 March.
The committee also approved the accreditation of Jordanian company Ampere as a recognised verification and validation body for carbon emission reduction projects. The meeting was attended by committee members, including representatives from the FRA, the Ministry of Environment, the Egyptian Exchange, and independent experts. The approval followed a detailed presentation by an Ampere representative outlining the company’s operational model and extensive experience across various countries. The committee evaluated Ampere’s expertise, qualifications, and track record before granting accreditation.
The newly approved projects include Oman Blue Carbon from Oman, registered under the Vera registry accredited by the FRA, which aims to reduce annual carbon emissions by 130,723 tonnes of CO2 equivalent. The second project, Solar DC from India, is registered under the Gold Standard registry and has an annual reduction capacity of 16,692 tonnes of CO2 equivalent.
With these additions, the FRA’s database now includes 28 voluntary carbon reduction projects, collectively offering more than 170,000 carbon reduction certificates available for trading on the designated carbon credit platform.
Enhancing Carbon Credit Market Infrastructure
Voluntary carbon credit registries serve as centralised electronic systems that track the issuance, registration, and ownership transfer of carbon emission reduction certificates. These certificates are issued by projects that adhere to methodologies established by recognised standard-setting bodies.
The Oman Blue Carbon project, operating in the agricultural sector, covers approximately 5,000 feddans. To date, 300,000 seedlings have been planted, with plans to double this number by the end of the year. Meanwhile, the Solar DC project in India, operating in the renewable energy sector, is expected to generate 10,000 carbon reduction certificates for trading. The project contributes to emissions reduction through renewable energy generation.
FRA’s Commitment to Carbon Market Development
FRA Chairperson Mohamed Farid emphasized that the registration of new carbon reduction projects underscores the authority’s commitment to accelerating the activation of the voluntary carbon market. Egypt was the first in the region to launch a regulated voluntary carbon market, enabling developers and financiers of emission reduction projects—spanning agricultural, industrial, and other sectors—to issue and trade carbon reduction certificates on established platforms, attracting both local and international investors.
Farid further highlighted the FRA’s role in supporting Egypt’s efforts toward carbon neutrality and emission reduction in alignment with global sustainability goals. Carbon emissions are a major driver of global temperature rise, leading to extreme weather events such as wildfires and floods, which pose economic and environmental risks. The FRA’s initiatives align with commitments announced at COP27, reinforcing Egypt’s leadership in sustainable development and green finance while fostering economic opportunities through carbon trading.
Regulatory Foundations and Market Framework
The foundation for Egypt’s voluntary carbon market was established through Prime Ministerial Decree No. 4664 of 2022, which amended the Executive Regulations of the Capital Market Law No. 95 of 1992 to classify carbon reduction certificates as financial instruments. This regulatory change facilitated the creation of a trading platform and a Supervisory and Oversight Committee within the FRA, comprising representatives from the FRA, the Ministry of Environment, the Egyptian Exchange, and independent carbon market experts.
To further expedite market activation, the FRA introduced accreditation regulations for verification and validation bodies assessing emission reduction projects. The committee has since accredited four entities—two domestic and two international.
Additionally, the FRA issued listing and delisting regulations for carbon reduction certificates on the Egyptian Exchange, along with standards for accrediting domestic voluntary carbon registries. These registries act as electronic central depositories, recording the issuance, registration, and ownership transfer of carbon reduction certificates in compliance with globally recognized standards.
In a parallel effort, the FRA approved trading and settlement regulations for voluntary carbon certificates on the Egyptian Exchange. These regulations were formulated through extensive consultations with key stakeholders, marking a pivotal step toward establishing Egypt as a regional leader in voluntary carbon trading and promoting sustainable economic growth.
