The new company’s framework agreement will open up new horizons for cooperation at the continental and regional levels to encourage green investment , says EGX head El-Dakany
The Egyptian Exchange Holding Company for Capital Markets Development, the Agricultural Bank of Egypt, and Libra Capital Group have agreed to a framework to establish a Carbon Certificates Trading Company, which aims to cooperate with government and private projects.
The new company’s framework agreement will open up new horizons for cooperation at the continental and regional levels to encourage green investment and diversify investment options for investors, said Egyptian Exchange (EGX) head Rami El-Dakany.
The company’s financial and organizational details were not disclosed in the official statement sent to the EGX.
Carbon certificate trading is a mechanism that aims to reduce companies’ emissions through a compliance market that exists for carbon credits within a regulated scheme.
Carbon credits allow companies to buy and sell carbon credits related to the volume of their emissions, with companies who end up with excess credits can sell them to other companies.
“It will also enhance Egypt's competitiveness as a major financial center for African markets for the trading of carbon certificates, which are one of the important financial tools to help emerging countries finance their expansion plans in parallel with achieving their goals in matters of climate change,” El-Dakany explained.
On the sidelines of the signing, Mahmoud Mohieldin, the climate leader for the Egyptian presidency of the COP27 summit, pointed towards Europe as the best example of standards and activity in the areas of carbon markets.
Mohieldin explained that the current volume of transactions in carbon-related credit is increasing 20 times, pointing out the need for a minimum carbon price in Africa to vary in prices, as it is once between $2-3 and sometimes between $80-100 per ton.
