The Sovereign Fund of Egypt (TSFE) and several local banks are considering acquiring shares in EgyCOP, a direct investment company for carbon certificates, according to a document issued by the Information and Decision Support Center (IDSC) of the Cabinet.
The document, which was seen by Daily News Egypt, stated that EgyCOP is currently completing the feasibility study necessary to launch. It is also discussing the accreditation mechanism for companies working in carbon certificates, to contribute to the national plan to reduce carbon emissions through investing in emission offsetting projects.
EgyCOP has a licensed capital of EGP 1bn to fund projects of Egyptian companies that work to reduce emissions in Egypt and to obtain internationally accredited certificates from the Swiss Gold Standard Foundation to offset emissions.
Hani Asaad, the Managing Director of Avanz Capital, which is responsible for managing the fund, said that EgyCOP plans to raise EGP 1bn initially. He said that the company is complementary to the voluntary carbon market that the Egyptian Stock Exchange intends to launch this year.
He told DNE that the company is still conducting some studies on the carbon certificates market, and is waiting to obtain a license from the Financial Regulatory Authority (FRA).
Hala El-Said, the Chairperson of TSFE, said that EgyCOP will provide more space for public funds to support adaptation projects, especially in light of the global economic slowdown and limited financial resources.
She said that there is a clear complementarity between the main goal of launching EgyCOP and the voluntary carbon market, as it is the first direct investment company operating in voluntary carbon markets. She also said that the joint initiatives between policymakers and the private sector confirm Egypt’s commitment to taking transformative steps towards climate action.
