Egypt Has Launched The First African Voluntary Carbon Market Platform

Egyptian Exchange Introduces Trading Rules for Carbon Emission Reduction Certificates and Futures Contracts: A Milestone in Sustainable Market Development

Ahmed El-Sheikh, Chairman of the Egyptian Exchange, issued Resolution No. 795 of 2024, establishing the trading rules for carbon emission reduction certificates and their futures contracts on the Egyptian Exchange. The Board of Directors of the Egyptian Exchange approved these trading rules, and the Board of Directors of "Settlements Clearing Services" Company established the settlement procedures in coordination with the Egyptian Exchange. Coordination and communication with the Financial Regulatory Authority were carried out to approve the trading rules and settlement procedures and to commence their implementation.

The Chairman of the Egyptian Exchange praised the constructive role played by the Financial Regulatory Authority in establishing the legislative framework for dealing with carbon emission reduction certificates and their futures contracts. The Authority issued listing and delisting rules, as well as standards for the approval of local voluntary carbon records and standards for the registration of verification and validation entities for carbon emission reduction projects.

El-Sheikh stated that the Egyptian Exchange completed the development of the trading system for carbon emission reduction certificates in December 2023, when the Exchange announced the readiness of the systems for trading these certificates. This was achieved through "Egypt for Information Dissemination" (EGID) - the technological arm of the Egyptian Exchange. Additionally, the settlement system for transactions was developed through "Settlements Clearing Services," a company owned by the Egyptian Exchange. He added, “I am proud of the success of the personnel at EGID and Settlements in developing the trading and settlement systems.”

El-Sheikh also announced that, as part of creating an integrated system for trading carbon certificates, the management of the Egyptian Exchange restructured the market's website and published all operational rules in both Arabic and English, presenting them side by side to facilitate access for all market participants.

Key Features of the New Trading Rules:

• Regulated Market: The EGX has established a secure and regulated environment for trading carbon credits and their futures contracts.
• Settlement Procedures: "Settlements Clearing Services" has developed detailed settlement procedures to ensure the smooth operation of transactions.
• Coordination with the Financial Regulatory Authority: The trading rules and settlement procedures were developed in close coordination with the Financial Regulatory Authority to ensure compliance with the regulatory framework.
• Dual Language Accessibility: The EGX has restructured its market website, making all operational rules available in both Arabic and English to cater to a broader audience.