The Financial Regulatory Authority (FRA), chaired by Mohamed Farid, has released its 2024 Annual Sustainability Report, providing a comprehensive overview of its strategic efforts to integrate sustainability into Egypt’s non-banking financial sector. The report highlights key milestones that underscore the FRA’s leadership in aligning regulatory frameworks with national climate objectives and global sustainability standards.
Among the most notable achievements in 2024 was the finalisation and official launch of the regulatory framework for Egypt’s voluntary carbon market. The launch event, held in the presence of six ministers and leading stakeholders, marked a pivotal moment in the country’s shift toward a low-emission economy. This development reflects the FRA’s ongoing commitment to fostering a balanced and sustainable environmental and financial system.
The report details the FRA’s continued progress in embedding environmental, social, and economic considerations into its regulatory agenda, in alignment with Egypt’s Vision 2030. It also highlights efforts to expand the promotion of the voluntary carbon market on both domestic and international fronts, strengthen the availability and use of climate-related financial instruments, and increase the issuance of carbon reduction tools. As a result of these efforts, projects from Egypt, Oman, Nepal, India, and Bangladesh have been successfully registered within the new framework.
An important feature of this year’s report is the inclusion of the FRA’s carbon footprint assessment for 2024, conducted by a nationally accredited body listed in the Authority’s registry of verification and validation entities. This makes the FRA the first regulatory body in Egypt to assess and publicly report its institutional carbon footprint—a significant step toward operational transparency and environmental accountability.
The report also outlines the role of verification and validation entities registered with the FRA. These entities are authorised to assess and certify environmental projects aimed at reducing carbon emissions by reviewing project data, evaluating technologies used, and verifying estimated emission reductions. Their work enables investors, institutions, and the public to assess the credibility and compliance of carbon reduction projects. As of 2024, six domestic and international entities are officially registered under the FRA’s regulatory framework.
These efforts are rooted in Egypt’s commitment to structured carbon market development, as first announced at COP27. The FRA’s work throughout 2024 resulted in the issuance of nine key regulatory decisions that established the regional framework for voluntary carbon markets. This led to the creation of five national carbon registries and the operationalisation of six accredited verification and validation entities, collectively supporting the registration of 34 carbon reduction projects. These projects, spanning Egypt and several other countries, have already accounted for the processing of more than 170,000 tonnes of carbon emissions.
Further regulatory advancements include the FRA’s successful proposal to amend provisions of the executive regulations of Capital Market Law No. 95 of 1992, leading to the issuance of Prime Ministerial Decree No. 4664 of 2022. This amendment formally classifies carbon reduction certificates as financial instruments, laying the legal groundwork for their trading within Egypt’s capital markets.
Following this, the FRA established Egypt’s first Oversight and Supervisory Committee for Carbon Reduction Units, with clearly defined responsibilities for market governance. In addition, the Authority issued regulatory guidelines for the registration of verification and validation entities, introduced rules governing the listing and delisting of carbon certificates on local exchanges, and approved operational standards for voluntary carbon registries. These registries serve as electronic platforms to issue, record, and track the transfer of ownership for carbon certificates generated by approved projects. The FRA also endorsed trading and settlement mechanisms for these certificates on the Egyptian Exchange, completing the infrastructure needed for a functioning voluntary carbon market.
Through these integrated efforts, the FRA continues to drive the transition to a green economy, positioning Egypt as a regional leader in sustainable finance and climate-aligned market development.
