Egypt issues criteria for registering carbon removal certification entities: Egypt’s Financial Regulatory Authority (FRA) has established carbon credit verification and certification standards for issuing voluntary carbon certificates, according to a statement.

The details: The decision stipulates that the certification body must provide the regulatory authority with the objective of the project, the technologies used, and the estimated volume of emission reduction — all of which the certification body is responsible for confirming. Two accreditation certificates and proof of professional competence are also required, the statement outlined. According to the regulation, unregistered entities are not permitted to carry out any verification or approval for carbon removal projects and cannot list or trade carbon certificates on the Egyptian stock exchange.

Foreign carbon removal certification bodies can also set up shop in Egypt: Registration is also open for foreign entities under the condition that they are internationally recognized in accordance with the UN regulations, have at least three projects previously registered in international voluntary carbon registers, and the team carrying out the verification work must include at least one Egyptian specialized in the sector. The regulator is also drawing up a list of local and foreign organizations capable of verifying and approving carbon credits.

Certificates registered abroad can be traded in Egypt: Organizations with carbon reduction certificates issued abroad would have to notify the authority of the certifications in the event they wish to trade these certificates inside Egypt. The organization would also have to be recognized by the UN.

In case of violations: In the event that the certifying body does not adhere to the regulator’s criteria, the FRA will first issue a warning and will specify a time period for reversing course. If the violation continues, the authority can temporarily suspend registration for a maximum of six months or remove the body entirely with the possibility of re-registering after at least one year.

Who’s behind the new regulations? The new rules were prepared under a proposal submitted by the Carbon Emissions Reductions Supervisory and Monitoring Committee, whose membership includes representatives of Egypt’s environment ministry, the Egyptian Stock Exchange, and other experts.

Background: The EGX announced it would set up Africa’s first voluntary carbon market last year. The market will allow companies in Egypt and Africa working on emissions-reducing projects to sell certified carbon credits, which can then be bought by other companies wanting to offset their emissions. The bourse is partnering with the Agricultural Bank of Egypt and Enara Group’s Libra Capital to establish Libra Carbon, an Egyptian company that will develop, manage, and issue carbon certificates.

REMEMBER- The FRA formed a committee to supervise and regulate the country’s soon-to-be launched voluntary carbon market last April. The new regulator's mandate includes establishing a rulebook outlining the requirements for issuing carbon credits, mapping out the greenhouse gas disclosure schemes companies would have to follow to verify their carbon output, and setting out the criteria for selecting verified carbon crediting bodies. The committee is headed by FRA chief Mohamed Farid and includes representatives from the country’s Environment Ministry, the Egyptian Stock Exchange (EGX), and the FRA.

Tags: