Launch of the First African VCM
09/11/2022
The Egyptian government announced the launching of the first regulated African
Voluntary Carbon Market on the sidelines of COP27, which is currently being
held in Sharm el-Sheikh in the presence of world leaders.
Prime Minister Mostafa Madbouly inaugurated the event in the presence of Dr.
Hala Al-Saeed, Minister of Planning and Economic Development, Dr. Yasmine
Fouad, Minister of Environment, Dr. Mohamed Farid, Chairman of the Financial
Regulatory Authority (FRA), and Rami ElDokany, Chairman of the Egyptian
Exchange (EGX).
The Financial Regulatory Authority (FRA) and The Egyptian Exchange (EGX), will
develop the regulatory frameworks, business models and organizational
structures to develop the African Carbon Market’s value chain, through raising
the levels of awareness about the importance of the VCM and its role in
providing ease access to climate finance for companies, as well as setting the
standards and regulations that guarantee the highest levels of integrity.
Dr. Mostafa Madbouly the Prime Minister expressed his great pleasure, praising
the quick response and the role played by FRA and EGX in stirring Egypt from
commitment to implementation during the COP27.
He added that this new VCM confirms the capabilities of Egypt to
participate effectively towards achieving the international goal of carbon
neutrality.
In addition, the new market is in line with the National Climate Change
Strategy 2050, with its fourth pillar aiming to strengthen the climate finance
infrastructure, emphasizing that the government pledges to provide all support
and assistance to achieve the objectives of this ambitious project.
Dr. Hala Al-Saeed stated that the new platform is consistent with Egypt’s
vision to achieve the goals of the green economy and support the sustainable
development strategy. She points out that the government will work to provide
enabler environment that offers all the guarantees and incentives
required to support plans and action models that push towards achieving
sustainable development, especially those that provide solutions to climate
change negative impacts.
Dr. Yasmine Fouad, Minister of Environment, expressed her thanks and
appreciation to the leaders of FRA & EGX for their efforts to turn policies
and ideas into reality, stressing that
Egypt is ready to support Africa in the transition towards implementing climate
change pledges through the new regulated voluntary carbon market.
Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority, said that we
are witnessing a historic moment with the launch of the new African Voluntary Carbon
Market, serving as a pivotal market and assisting the African continent achieve
carbon neutrality in accordance with international standards and enhance the
level of involvement of African companies in accessing innovative climate
finance.
Rami ElDokany, Chairman of the Egyptian Exchange, officially announced the
launching of the African Voluntary Carbon Market, pointing out that the new
market will support the efforts of the African continent at the governmental
and private levels towards achieving economic, environmental and social
benefit.
Moreover, accelerating and enhancing mitigation and adaptation ambition through
the establishment of assets in the form of carbon credits. He added that the
coming period in coordination with the new entity, which was established in
cooperation with the private sector will manage and develop the process of
issuing, registering and trading carbon credits.