الهيئة العامة للرقابة المالية

• Developing the capacities of Validation/Verification Bodies (VVBs) to stimulate growth in the Voluntary Carbon Market.
• Mohamed Farid, FRA Chairman emphasized the critical role of Validation/Verification Bodies (VVBs) in ensuring the integrity and credibility of carbon projects. He also highlighted that there are three (VVBs) listed at FRA’s registry.
• Andreas Rupp, Director of the Private Sector Development Program at GIZ, commended the fruitful collaboration with FRA through the Regional Centre for Sustainable Finance. He emphasized that the training program was a direct outcome of this partnership and highlighted its crucial role in enabling Verification and Validation Bodies (VVBs) to meet international standards and FRA’s registration requirements.

The Regional Centre for Sustainable Finance (RCFSF) concludes the first training program for Validation/Verification Bodies (VVBs) in cooperation with GIZ and pursuant to international practices and FRA’s registration requirements.

The training program covered specialized modules on greenhouse gas measurement and key challenges faced by VVBs, complemented by hands-on activities and exercises.

FRA continues to make significant strides in supporting the Egyptian government’s vision for sustainable development and climate action by launching Egypt’s first regulated and monitored Voluntary Carbon Market in August 2023. Six ministers, EGX Chairman and key market participants attended this launch.  Moreover, FRA has facilitated the registration of 14 projects and overseen 12 trading transactions for carbon credits.

The training program attracted 35 participants, including representatives from 10 potential Verification and Validation Bodies (VVBs) and 10 consultants. FRA also plans to expand training opportunities to other interested parties, such as financial institutions and companies seeking to reduce their carbon footprint.

FRA Chairman emphasizes importance of capacity building for local VVBs in Egypt’s Voluntary Carbon Market which was finalized and started trading last August.

He also stresses that FRA has set certain rules for registering VVBs at its registries, adding that FRA’s committee started receiving applications from parties wishing to register as VVBs and conducted interviews to verify their capabilities and qualifications, which resulted in the registration of 3 entities, two local and a foreign one.

Dr. Farid points out that the market’s regulation aligns with COP27 commitments, enabling project implementers and financiers to issue and sell carbon credits, thereby attracting new local and foreign investors.

Additionally, Dr. Farid highlights that Egypt’s inaugural regulated Carbon Market, supervised by FRA, marks a significant milestone for both Egypt and Africa. This market is poised to bolster the government’s efforts towards achieving carbon neutrality and facilitating negotiations on reducing the carbon footprint of exported goods. By attracting increased investment and establishing Egypt as a leader in this field, the market can contribute to sustainable economic growth and enhance the competitiveness of Egyptian exports.

On the other hand, Andreas Rupp, Director of the Private Sector Development Program at GIZ commends the successful partnership between FRA and GIZ through the Regional Centre for Sustainable Finance. He highlights that this collaboration led to the development of a training program designed to enhance the capabilities of local market participants in delivering high-quality verification and validation services.

The training program is part of a series of initiatives launched by the Regional Centre for Sustainable Finance (RCFSF) to enhance the capabilities of various stakeholders within the non-banking financial sector and promote awareness of sustainable finance’s crucial role in driving the green economy transition.

The series encompasses specialized training courses and workshops focused on sustainable finance, responsible investment, and environmental and social risk management. These initiatives aim to equip human capital with the requisite skills to navigate and contribute to global trends in this field.