Egypt's Financial Regulatory Authority (FRA) announced on Tuesday amendments to the rules for listing and delisting carbon certificates on Egyptian stock exchanges. The authority also updated the registration criteria for local validation and verification bodies. The goal is to encourage more companies to participate in the carbon credit market while enhancing the efficiency of local validation and verification bodies, as per FRA statement. The FRA issued resolutions No. 252 and 253 of 2024, which amend decision No. 31 of 2024. A key change allows carbon emission reduction projects to be registered in the FRA's project database before validation reports are issued, provided that these reports are submitted within a year of registration. If not, the registration will be voided, though extensions can be granted if justified. These measures aim to incentivise companies to cut carbon emissions and issue certificates, facilitating a pathway to recover part of their investment in emission reduction. By streamlining the process, the FRA aims to increase the availability of carbon reduction projects and maintain comprehensive oversight of the market. The new regulations require verification bodies to obtain ISO 14064-2:2019 certification, which covers carbon emission measurement standards, to strengthen their competence and capabilities. The revised criteria mandate that applicant bodies must be legal entities and hold ISO certifications such as ISO 14065:2020 or ISO/IEC 17029, and ISO 14064:3 for documenting verification processes. They must also meet professional competency standards, with senior figures or specialised teams passing interviews conducted by the FRA's oversight committee. Further stipulations include ensuring that members of the board or key personnel have no criminal convictions for offenses affecting integrity or trust unless their status has been rehabilitated. These changes come after the FRA's initial introduction of rules for listing carbon emission reduction certificates in March, marking a first in Egypt's market landscape. This was followed by the launch of the country's and Africa's first regulated voluntary carbon market in August, overseen by six ministers. The FRA's ongoing efforts are part of Egypt's broader strategy to promote carbon neutrality, reduce the severe impacts of climate change, such as wildfires and floods, and create a sustainable environment that supports long-term economic activity. Attribution: The Egyptian Cabinet
