The Financial Regulatory Authority (FRA) submitted a proposal on Wednesday to introduce some amendments to the executive regulations of Capital Market Law No. 95 of 1992 to the Cabinet that would allow the issuance of various financial instruments that foster environmental and climate protection.
One such instrument are carbon certificates, which the FRA set the legislative framework for to regulate its trading after the large increase in the volume of trading on this type of certificates in global markets.
The EU adopted carbon certificates as one of its financial instruments as of 2018.
The FRA meeting also reviewed the executive and detailed steps to launch a platform for trading carbon certificates, which takes into account the various international requirements and obligations of Egypt that were raised by the representatives of the Ministries of Foreign Affairs and Environment and the Environmental Affairs Agency.
During the meeting, Chairperson of the FRA Mohamed Farid revealed that the certificates would be issued to entities once they transform their projects and reduce emissions, increasing the supply side of these certificates for trading within the permissible framework in accordance with Egypt’s international commitments, adding that companies operating in Africa could also be eligible for these certificates.
For his part, Mohamed Nasr — Director of the Climate, Environment, and Sustainable Development Department at the Ministry of Foreign Affairs — welcomed the efforts made by the FRA in coordinating efforts with the authorities concerned with the challenges of facing climate change and introducing mechanisms that help in the transition to a green economy, emphasising that these certificates are widely accepted by many international financial institutions and have become the ideal mechanisms to confront climate change and the main tool for achieving the transformation of the green economy.