The new market enables the executors and financiers of carbon reduction projects to issue carbon reduction certificates for projects registered in the authority and sell them in trading systems equipped by the Egyptian Stock Exchange (EGX) to attract local and foreign investors to trade in these certificates, FRA said in a statement on Sunday.

The first steps of the new market commenced after Prime Minister Mostafa Madbouly issued decree number 4664 for the year 2022.

The government modified some executive regulation provisions for the capital market law no. 95 for the year 1992 in order to establish carbon reduction certificates as a financial instrument.

A platform, headed by the president of the Egypt Financial Supervisory Authority, was then established by the Egyptian exchange to supervise and monitor carbon emissions reduction units and their properties

The authority issued a decree stipulating the criteria for accrediting verification and certifying entities of carbon emissions reduction projects.

The committee organized by the authority started receiving forms from entities that want to register to work as verification and certification bodies and has conducted interviews to check their capabilities.

Egypt plans to reduce Greenhouse gases (GHG) emissions from electricity generation, transmission, and distribution by 37 percent by 2030.