الهيئة العامة للرقابة المالية

• The Advisory Group will comprise local and international experts, providing technical advice to the CCRC on all relevant matters
• The Authority aims to maximize the benefits of international expertise and experiences in voluntary carbon markets to ensure the success of Egypt’s initiative
• The Authority aims to position the Egyptian voluntary carbon market as a global benchmark by expanding its influence beyond local and regional boundaries.

FRA decree No. 279 of 2024 authorizes the establishment of an advisory group to assist the Committee for Supervision of Carbon Emission Reduction Units (CCRC). This group comprises 13 members with diverse expertise in carbon emissions reduction, sustainable development, climate change, and clean energy, including both local and international professionals. The Committee’s Chairman will nominate candidates, and the Committee will select members to serve one-year renewable terms.

The advisory group’s primary function is to assist the Committee in achieving its objectives and fulfilling its responsibilities. Specifically, the group will provide valuable technical advice on matters relevant to the Committee’s work and conduct in-depth studies on assigned topics.

This decree builds upon FRA’s ongoing efforts to establish a thriving voluntary carbon market that transcends local and regional boundaries. The aim is to position the Egyptian voluntary carbon market as a global benchmark, inspiring other countries to adopt similar models. The said decree aligns with the global imperative to achieve carbon neutrality and ensure global stability.

Building upon the Authority’s ongoing efforts to expedite the activation of the regulated voluntary carbon market – launched last August as a pioneering initiative in Egypt and Africa, witnessed by six ministers – the Authority has established the first Committee for Supervision of Carbon Emission Reduction Units (CCRC). Chaired by FRA’s Chairman, this Committee comprises representatives from the Authority, the Ministry of Environment, the Egyptian Exchange and esteemed carbon market experts. The Committee assumes the crucial responsibility of formulating the rules governing the issuance, supervision and monitoring of carbon credits, ensuring transparency and continuous disclosure throughout the process. Furthermore, the Committee is tasked with establishing robust criteria for selecting qualified Validation/Verification Bodies (VVBs).

The decree mandates that all advisory group recommendations be presented to the CCRC for review and action. The CCRC may also assign specific tasks to advisory group members.

The decree outlines meeting procedures for the advisory group. Meetings will be convened by the Committee’s Chairman as needed and may be conducted using any suitable communication method. A quorum is established, requiring the presence of more than half of the advisory group members, including either the Chairman or Vice-chairman. Decisions are made by a simple majority vote, with the Chairman casting the tiebreaker. The Committee Chairman or their designee may attend meetings and the Chairman may invite external experts as observers without voting rights.

These actions by the Authority represent a continuation of the Egyptian government’s efforts, as outlined at COP 27, to develop regulated markets, including the establishment of voluntary carbon markets. The Authority has taken several steps, including the issuance of decree no. 4664 of 2022 by the Prime Minister to amend certain provisions of the Executive Regulations of the Capital Market Law No. 95 of 1992 to consider carbon credits as financial instruments, based on a proposal by the Authority’s board of directors. Subsequently, the first Committee for Supervision of Carbon Emission Reduction Units (CCRC) was formed.

The Authority subsequently issued a series of crucial regulations to support the development of a robust carbon market. These regulations included establishing rigorous criteria for registering and accrediting Validation and Verification Bodies (VVBs). Comprehensive rules were issued for the listing and delisting of carbon credits on the Egyptian Stock Exchange. Furthermore, standards were established for approving local voluntary carbon registries. These registries serve as centralized electronic platforms for the issuance, registration, and tracking of carbon credits throughout their lifecycle. The Authority also approved trading and settlement rules for voluntary carbon credits on the Egyptian Stock Exchange.

The Authority’s efforts have resulted in the establishment of a robust regulatory framework for the voluntary carbon market at the regional level, evidenced by the issuance of 9 key decisions. This framework supports the operation of 5 registries and the accreditation of Validation and Verification Bodies (VVBs). These efforts have facilitated the registration of over 145,000 carbon credits, representing a significant reduction in emissions. Furthermore, approximately 21 projects have been registered across diverse sectors, including sustainable agriculture, afforestation, reforestation, re-vegetation (ARR), biogas, energy access, cookstoves and water filtration.