The landmark announcement of Africa’s Voluntary Carbon Market (the “VCM”) at COP 27 in Egypt marked a pivotal advancement in the region’s economic and environmental sustainability agenda. This initiative stemmed from collaborative efforts among key institutions, including the Financial Regulatory Authority (the “FRA”), the Egyptian Stock Exchange, and the Egyptian Ministry of Environment culminating in the formal launch of the continent’s first trading platform for Certificates of Carbon Emission Reductions (referred to as “Carbon Credits”) on the Egyptian Stock Exchange (“EGX”).
The launch was underpinned by the Cabinet Decree No. 4664 of 2022, which amended pertinent provisions of the executive regulations of the Capital Market Law No. 95 of 1992 (the “Capital Market Law”). Accordingly, this has resulted in officially classifying Carbon Credits as financial instruments eligible for registration and trading on the EGX’s trading platform.
This also reflects Egypt’s Vision 2030 and the National Climate Change Strategy 2050, which strives to balance between economic and environmental development by addressing climate-related challenges while sustaining economic growth. VCMs are key global tools in minimizing greenhouse gas emissions. They have strong potential to generate financial returns that support climate action.
In this sustainability report, Shehata & Partners Law Firm (“SP”) provides a comprehensive overview of Carbon Credits outlining the regulatory framework governing the registration, issuance, and trading of Carbon Credits, which represent a verified reduction in greenhouse gas emissions.
For more information about the Carbon Credits in Egypt, please click on the download button “Carbon Credits Report” below.
