In continuation of the efforts of the Financial Regulatory Authority aimed at accelerating the pace of activating the voluntary carbon market monitored and regulated by the financial markets supervisory authorities, the Authority announced the implementation of a deal to sell 350 carbon emissions reduction certificates from the Minya Governorate Complex Project, one of the carbon emissions reduction projects of the Egyptian Society for Biodynamic Agriculture, which is registered in a database. Authority for projects to reduce carbon emissions for the benefit of the Egyptian Insurance Federation, where the process was implemented according to the Pre-arranged deals mechanism through Beltone Securities Trading Company, which holds a license to deal in certificates. Voluntary carbon reduction from the Financial Regulatory Authority.
The next few days will witness the completion of the implementation of this deal, which is taking place in two stages, the first of which includes 350 certificates.
The Financial Regulatory Authority, headed by Dr. Mohamed Farid, had launched in August 2024 the first voluntary carbon market, regulated and monitored by the financial markets supervisory authorities, in Egypt, in the presence of 6 ministers, by registering voluntary carbon emission reduction projects in the authority’s database and issuing and trading reduction certificates. Carbon emissions, between local and international parties, after completing all regulatory requirements in cooperation with the Ministry of Environment.
The market activation began in August 2024 with the implementation of 3 trading operations on carbon emission reduction certificates between ISIS Food Industries, the buying party, and the Egyptian Biodynamic Agriculture Association (EBDA), the selling party, through Beltone Securities Trading Company, at a price of 1,040 pounds per certificate for 500 voluntary carbon certificates, and between Daltex Company is the purchasing party for about 1,500 certificates at a price of $18 per certificate, and VNV Advisory Company is the selling party and between SCB Company. For environmental markets, the purchasing party was implemented by CI Capital Securities Trading Company.
In the same context, Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority, had participated in the initiative of the Egyptian Insurance Federation by planting a number of trees, in the city of Sharm El-Sheikh, on the sidelines of the launch of the annual insurance and reinsurance forum in its sixth edition, which was organized by the Egyptian Insurance Federation, as a contribution to reducing… Carbon emissions from aircraft used to transport conference guests.
For his part, Alaa Al-Zuhairi, Chairman of the Board of Directors of the Egyptian Insurance Federation, said that the Federation has been particularly concerned for some time with activating the principles of sustainability, especially the elements affecting the amount of carbon emissions, which have the greatest impact on the Earth. The Federation, in coordination with the Financial Regulatory Authority, calculated the average carbon emissions issued by organizing the Sixth Sharm El-Sheikh Forum, and then certificates equivalent to the amount of carbon dioxide emitted during the forum were purchased. The Egyptian Insurance Federation took the first initiative in purchasing these certificates, and it will, in the next stage, raise awareness. Insurance companies highlight the importance of the voluntary carbon market and motivate them to benefit from different types of carbon emissions reduction certificates to reduce the sector’s impact on the environment.
These moves by the Authority come as a continuation of supporting the efforts of the Egyptian state in developing regulated markets and what was announced at the COP 27 conference, regarding the work to launch voluntary carbon markets, where the Authority has taken many measures, including issuing a decision from the Prime Minister No. 4664 of the year 2022 regarding amending some provisions of the executive regulations of the Capital Market Law No. 95 of 1992 regarding considering carbon emission reduction certificates as a financial instrument, based on the proposal of the Board of Directors. The Authority then formed the first committee to supervise and control carbon emission reduction units and its powers. Then the Authority issued a decision to regulate the standards for registering verification and certification bodies for reduction projects in the list prepared for that purpose at the Authority. This was followed by issuing rules for registering and delisting carbon emission reduction certificates on the Egyptian stock exchanges, and standards for approving records. Local voluntary carbon deposits, which are considered central electronic custodial systems, include records for issuing, registering, and tracking the sequence of transfer of ownership of carbon emission reduction certificates resulting from the implementation of the reduction project, as well as the Authority’s approval of the trading rules on the Egyptian Stock Exchange, and the approval of Settlement rules for voluntary carbon certificates on Egyptian stock exchanges.
