H.E. Dr. Mohamed Farid discusses Egypt’s VCM with Banks Federation

Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority (FRA), discussed Egypt’s pioneering experience in launching the first regulated voluntary carbon market with the Federation of Egyptian Banks.

• The Financial Regulatory Authority (FRA), led by Dr. Mohamed Farid, has launched Egypt's first regulated voluntary carbon market, aligning with national and international climate goals.
• The regulatory framework is now complete, and companies are encouraged to register their carbon reduction projects.
• Carbon credits are recognized as financial instruments and can be traded, attracting investment in clean energy and emissions reduction.
• A supervisory committee, including the FRA, the Ministry of Environment, and the Egyptian Exchange, ensures transparency and oversight.

Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority (FRA), highlighted Egypt’s pioneering effort in establishing the first regulated voluntary carbon market in the region. The initiative aligns with Egypt’s vision for carbon neutrality and international climate commitments. The FRA has developed a technical and regulatory framework based on global best practices to measure, verify, and certify emissions reductions. Companies can now register their projects and issue tradable carbon credits.

To ensure market efficiency, a supervisory committee—comprising the FRA, the Ministry of Environment, and the Egyptian Exchange—was formed to regulate carbon credit issuance and trading. The initiative aims to attract investment, reduce emissions, and enhance Egypt’s role in global carbon markets. With over 160,000 carbon credits registered and 26 emissions reduction projects spanning sectors like sustainable agriculture, reforestation, and clean energy, the market is set to drive Egypt’s transition to a low-carbon economy.