الهيئة العامة للرقابة المالية

Dr. Islam Azzam – FRA Chairman:

• The Authority plays a vital role in empowering companies and investors with the latest non-banking market developments, specifically within the Voluntary Carbon Market.

Under the auspices of FRA, the Regional Center for Sustainable Finance (RCSF) hosted a specialized workshop outlining the implementation of FRA Board Resolution No. 36 of 2026. This landmark resolution mandates that non-banking financial services (NBFS) entities disclose their carbon footprints and execute mandatory offsets via purchasing carbon credits through the regulated Voluntary Carbon Market.

Dr. Islam Azzam, FRA Chairman, stated that these initiatives are part of the Authority’s broader efforts to develop sustainable non-banking financial markets. This strategy supports a “Just Transition” toward a more sustainable, low-carbon economy, which serves as a primary pillar of “Egypt Vision 2030.”

 Additionally, Dr. Azzam reaffirmed FRA’s role in navigating companies through these transitions, with a specific focus on the voluntary carbon market. The session targeted high-cap entities (exceeding EGP 100 million in capital or equity) now subject to mandatory carbon reporting and offsetting requirements.

Due to high demand, the workshop was conducted over two sessions, inaugurated by Dr. Tarek Seif, Executive Director of the Financial Services Institute (FSI). Dr. Seif characterized the resolution as a “qualitative leap” in regulatory oversight, marking a pivotal transition from passive disclosure to active measurement and mandatory offsetting. These strategic measures are poised to enhance the competitiveness of Egyptian NBFS firms, positioning them as premier targets for global sustainability-linked investments.

During the technical session, Nourhan Ashraf, Sustainable Development Specialist at the RCSF, provided a detailed explanation of Article (1) of the resolution. She clarified that obligated companies must prepare detailed annual “Carbon Footprint” reports covering Scope 1 and Scope 2 emissions. These reports must be validated by an FRA-registered verification body. The inaugural report is due by June 30, 2026, with subsequent reports submitted periodically at the close of each fiscal year.

The workshop detailed the resolution’s requirement for companies to offset 20% of their total annual carbon emissions as verified in their reports. This must be achieved by purchasing Carbon Credits from the regulated Voluntary Carbon Market within 90 days of submitting their report to FRA.

Omar El-Nemr, Carbon Market Expert at the Center, presented “FRA Climate Project Registry.” He provided attendees with an overview of registered projects and their specific technical characteristics.

The workshop concluded with an open Q&A session, where experts addressed technical inquiries regarding measurement methodologies and the specific steps for executing purchases within the Voluntary Carbon Market.