The Financial Regulatory Authority (FRA) announced the successful sale of 350 carbon emission reduction certificates.
The Financial Regulatory Authority (FRA) announced the successful sale of 350 carbon emission reduction certificates, marking a significant step in activating Egypt’s voluntary carbon market.
The transaction took place between the Egyptian Insurance Federation as the buyer and the Minya Governorate Comprehensive Project, a carbon reduction initiative by the Egyptian Biodynamic Agriculture Association (EBDA), listed in the FRA’s carbon reduction database.
The deal reflects the Egyptian Insurance Federation’s efforts to offset carbon emissions generated by airplane travel for attendees of the Sharm El-Sheikh Insurance Conference, with the goal of achieving net zero emissions for future events. This transaction represents the first phase of a larger deal set to be completed in the coming days.
The FRA has been at the forefront of developing Egypt’s voluntary carbon market, which was launched in August 2024. The market enables the registration of carbon reduction projects, issuance of carbon reduction certificates, and trading among local and international stakeholders.
Since its launch, three key transactions have been completed, including the sale of 500 certificates by EBDA to Isis Food Industries for EGP 1,040 per certificate and a deal involving 1,500 certificates sold by VNV Advisory to Daltex for USD 18 per certificate.
These developments follow a series of regulatory measures, including amendments to the Capital Market Law to classify carbon certificates as financial instruments and the introduction of listing, trading, and settlement rules for voluntary carbon certificates on Egyptian exchanges. The FRA has also established a committee to oversee carbon reduction units and created electronic systems to track and manage certificate ownership.
