الهيئة العامة للرقابة المالية

• Dr. Mohamed Faird, Executive Chairman of the Financial Regulatory Authority, highlighted the Regulator’s pioneering endeavor in launching the first Regulated Voluntary Carbon Market (VCM) in support of carbon neutrality efforts.

Dr. Mohamed Farid, Executive Chairman of the FRA:

• We welcome the partnership with the bank to advance further the necessary efforts to expedite activating the Voluntary Carbon Market (VCM)
• Comprehensive meetings with parties constituting supply and demand through introducing economic entities to the new Market and encouraging non-bank financial institutions to engage in climate action
• Nat Pinnoi, Project Manager: We recognize Egypt’s pioneering endeavor in launching the first carbon market, and we will partner with the FRA on future efforts

Dr. Mohamed Farid, Executive Chairman of the Financial Regulatory Authority (FRA), held a meeting with representatives from the Asian Infrastructure Investment Bank (AIIB), including Nat Pinnoi, Senior Investment Officer and delegation head, Mark William Sundberg, Senior Economist, and Marcin Sasin, Senior Advisor, during their visit to Egypt examine cooperation.

The Chairman outlined the FRA’s pioneer achievement in establishing the first organized and regulated Voluntary Carbon Market (VCM) and its plans to implement future initiatives. He pointed out the Market’s role in creating investment opportunities for companies.

He highlighted the FRA’s ambitious steps towards inaugurating the first regulated Voluntary Carbon Market, indicating that the Authority will continue encouraging companies to buy carbon credits and increasing the number of projects in the FRA’s registries in conformity with verification and validation bodies. The FRA will conduct meetings with firms to raise awareness about the carbon market and its horizons, as well as how they can design carbon reduction projects.

Nat Pinnoi, Head of the AIIB delegation, praised Egypt’s launch of the first organized and regulated voluntary carbon market, recognizing the FRA’s pioneering role in the Arab and African regions in establishing the market and overcoming challenges. The delegation expressed a readiness to cooperate in advancing efforts to activate the market and involve more companies.

Dr. Farid reiterated that this regulatory initiative aligns with the commitments made at COP27, enabling emission reduction project implementers and financiers, whether agricultural, industrial, or other, to issue carbon reduction credits and sell them through trading systems developed for this purpose. The FRA covet is attracting local and international investors, generating additional returns for these projects, boosting investment rates, and asserting Egypt’s leadership in this field while promoting sustainable economic growth.

During the meeting, he stated that the foundation for the new market was laid with the Prime Minister’s Decree, which amended Capital Market Law No. 95 of 1992 to recognize carbon credits as financial instruments. This decree also mandated the creation of a trading platform and a supervisory committee, both initiated by the Financial Regulatory Authority Chaired by the FRA Chairman. The committee includes representatives from the Ministry of Environment, the Stock Exchange and carbon market experts.

FRA issued a decree regulating the listing of verification and validation bodies to expedite the activation of the new market, which plays a crucial role in supporting Egypt’s efforts to reduce carbon emissions. Following the issuance of this decree, the Authority began receiving applications from individuals and organizations seeking to become verifiers and certifiers.

A rigorous evaluation procedure was conducted to assess the applicants’ abilities and qualifications; correspondingly, three domestic and foreign verification and validation bodies were approved to operate in the market.

FRA then established listing and delisting rules for carbon credits. Additionally, FRA has outlined criteria for adopting local voluntary carbon registries, which serve as electronic platforms for recording the issuance, registration, and tracking of carbon credit transfers according to the methodologies established by the standard-setting bodies. Concurrently, FRA has finalized trading rules and has approved settlement rules, incorporating feedback from extensive consultations.