الهيئة العامة للرقابة المالية

• The report details the significant progress the Authority made in achieving its sustainability goals throughout the year.
• The launch of the Voluntary Carbon Market is among the most notable efforts of the year, following the issuance of 9 regulatory decisions.
• The Authority measured its carbon footprint for 2024 in an unprecedented step as the first regulatory body to do so.

The Financial Regulatory Authority (FRA) chaired by Dr. Mohamed Farid has published its Annual Sustainability Report 2024. The report offers a detailed look at the Authority’s strategic transition toward a greener and more sustainable economy. It documents the key initiatives and qualitative changes implemented by FRA throughout the year, highlighting major sustainability issues addressed and the tangible outcomes achieved. This demonstrates a strong alignment between Egypt’s ambitious development plans and their practical execution.

According to the report, FRA’s most significant accomplishment in 2024 was the finalization of the legislative framework for the Voluntary Carbon Market, followed by its official launch. This milestone event, attended by six ministers and all relevant stakeholders, represents a major stride toward establishing a low-emission economy and reaffirms the Authority’s dedication to foster a sustainable and balanced environmental system.

The report also outlines various sustainability practices adopted by FRA to integrate environmental, social and economic considerations, in line with Egypt’s Vision 2030. These efforts included promoting the Voluntary Carbon Market both locally and globally, enhancing climate-related financial instruments, and increasing their issuance. As a direct result, the market successfully registered projects from Egypt, Oman, Nepal, India and Bangladesh.

The report also includes an annex detailing the measurement of the Authority’s 2024 carbon footprint. This was a landmark move, as FRA is the first Egyptian regulatory body to measure its own emissions. The measurement was performed by a specialized national firm, which is officially registered with FRA as a Validation and Verification Body (VVB).

These VVBs, both local and foreign, are tasked with a crucial role: measuring, registering and documenting environmental projects aimed at reducing carbon emissions. They do this by carefully reviewing project details, including objectives, technology used and projected emissions reductions. Their evaluations and information verification ensure that investors and the public can trust that registered projects are meeting their stated goals. FRA currently has six VVBs registered.

These initiatives are part of FRA’s broader commitment to support Egypt’s state-led efforts to develop regulated markets, first announced at COP27. The Authority’s work led to the issuance of nine regulatory decisions that established the regional framework for the Voluntary Carbon Market. This framework has enabled the creation of five registries and the operation of six VVBs, which have facilitated the registration of approximately 34 projects from five countries namely Egypt, Oman, Nepal, India and Bangladesh. These projects have already contributed to the treatment of over 170,000 tons of carbon emissions.

FRA implemented a series of key measures to establish the Voluntary Carbon Market. First, based on a proposal from its board, FRA secured Prime Minister’s Decree No. 4664 of 2022. This decree amended the Capital Market Law, officially designating carbon credits as a financial instrument. Following this, the first Carbon Credit Regulatory Committee (CCRC) to control and supervise carbon emission reduction units (CERUs) was formed with its specific powers defined.

Next, the Authority focused on regulatory standards. It issued a decision outlining the criteria for registering Validation and Verification Bodies (VVBs) on its official registry. This was followed by the creation of rules for listing and delisting carbon credits on Egyptian Stock Exchanges. FRA also established accreditation standards for local voluntary carbon registries. These registries serve as secure, electronic central custody systems for issuing, recording and tracking the ownership transfer of carbon credits generated from reduction projects. Finally, the Authority accredited the trading and settlement rules for voluntary carbon credits on the Egyptian Exchanges.

To view the report, click here.