The Financial Regulatory Authority (FRA) has announced that it will launch a voluntary market for trading carbon certificates, which are documents that represent the reduction or removal of greenhouse gas emissions. The carbon certificates are classified into two main types: removal certificates, which are based on technological methods, and capture certificates, which are based on natural methods. There are also avoidance certificates, which are based on avoiding emissions through technological methods, and reduction certificates, which are based on preserving the existing nature.
Ahmed Rushdi, the advisor to the FRA Chairperson and the Executive Director of the Regional Center for Sustainable Finance, said that six projects in the Egyptian market have already issued about 230,000 voluntary certificates. He said that the FRA will hold a workshop for journalists on carbon markets to explain the details and benefits of this initiative.
He also said that the carbon certificates will require a verification and authentication process, which will ensure that the projects meet the standards and criteria of the carbon reduction registers. He said that the verification process will confirm the quality and impact of the project implementation and the amount of emissions reduced. He said that the verification and authentication process will follow the ISO 14064 and ISO 14065 standards and that two local institutions have applied for the license from the National Accreditation Council.
He added that the carbon certificates will be registered and tracked on an international and regional platform, which will enable the institutions and governments to measure, report, and verify the emission reductions. He said that the platform will use the standards set by the registration bodies, such as Gold Standard, Verra, and G.
