Launched yesterday by the Financial Regulatory Authority (FRA), trading on Africa’s first voluntary carbon market (AFRICARBONex) kicked off with companies now able to issue and trade carbon certificates within Egypt and Africa, allowing businesses to purchase/sell them to offset their emissions.

Since trading began, several companies have already participated. Food producer Isis Organic has acquired 500 carbon credits representing 500 tons of CO2 from 10 farms through the Egyptian Biodynamic Association (EBDA), Beltone Securities Brokerage revealed in a statement.

These credits are certified under EBDA's “Economy of Love” standard, which supports small-scale farmers in transitioning to organic and biodynamic farming methods.

Local firm Daltex has purchased 1,500 carbon credits from an agroforestry project in India’s Punjab through VNV Advisory, which aims to promote sustainable farming practices and use the income from carbon credits to improve the livelihoods of small farmers in rural India.

FRA head Mohamed Farid told Asharq Business that another local emission-reducing project has been registered, with plans to add 6-7 more projects soon, but did not disclose the company or the industry.

The next phase of the market will introduce trading in renewable energy certificates, Farid noted during the launch ceremony, according to Hapi Journal.

The EGX initially announced plans for the market in 2022, with seven companies including Mubasher Financial Services, Arab African International Securities, Bank Audi’s Arabeya Online brokerage, Pioneers Brokerage, and Cairo Capital Securities, expressing interest in applying for FRA approval to trade carbon emissions reduction certificates and futures contracts. CI Capital has already received approval to begin trading these certificates.