FRA develops legislative frameworks to promote sustainability in non-banking activities

Daily News Egypt
2 Min Read

The Financial Regulatory Authority (FRA) has completed the development of the legislative and regulatory framework required to enhance the levels of sustainability in non-banking financial activities, by providing innovative financing tools and products that support environmental investments.

This was announced by the FRA Chairperson Mohamed Farid, who participated in the main session of the first Environmental and Climate Investment Forum in Egypt, held under the patronage of President Abdel Fattah Al-Sisi, and organized by the Ministry of Environment, in the New Administrative Capital. The forum was attended by Prime Minister Mostafa Madbouly, several ministers and heads of economic and regulatory bodies, as well as the Ambassador of Switzerland to Cairo, the Deputy Director General of UNIDO, and leaders of major companies operating in various economic sectors.

Farid stressed the need for all relevant institutions and bodies to join forces to raise awareness and knowledge of the importance of committing and engaging more in activities and projects that consider environmental and social dimensions, as well as adapting to climate change and reducing emissions. He also emphasized the need to inform them of the economic returns and benefits of such projects, which would motivate business owners and entities to adapt to the environmental and climate requirements.

He added that the FRA, as responsible for monitoring and supervising non-banking financial markets and instruments, had helped establish the first voluntary market for trading carbon emission reduction certificates to be a regional center for trading African-origin certificates. This was announced during the climate summit held in November 2022 in the presence of Prime Minister Madbouly. Since then, an ongoing partnership has been established between the FRA and the Egyptian Exchange to facilitate the establishment of a voluntary carbon market and to set the rules that will regulate this market.

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