FRA rolls out requirements for carbon trading: Brokerage firms looking to trade carbon certificates must have a minimum issued and paid-up capital of EGP 15 mn to get the greenlight from Egypt’s Financial Regulatory Authority (FRA), according to a decision published on Egypt’s Official Gazette.

Other requirements include: Firms’ ownership rights should not fall below the paid-up capital. And they must make the required tech infrastructure, cybersecurity, and e-systems needed to trade carbon certificates available. Also, brokerage firms are to appoint an FRA-trained executive to be responsible for carbon certificates trading.

What’s next? Firms that tick all the boxes can submit a request to the FRA to get their carbon trading license. The authority should respond to the applications within a week’s time.

Remember: The EGX in 2022 announced it would set up Africa’s first voluntary carbon market. 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.

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