Egypt: A voluntary carbon market

13 Jan 2023    2 minute read
Sustainability Energy Transition

In brief

A recent Prime Ministerial Decree No. 4664 of 2022 ("Decree") was published on 25 December 2022, incorporating new provisions to the executive regulations of the Capital Markets Law No. 95 of 1992.

The Decree provides for the establishment of a voluntary carbon market platform within the Egyptian Stock Exchange (EGX) for the trading of carbon emissions reduction certificates (CERs). The CERs are tradeable financial instruments for greenhouse gases (GHG) and are to be issued in favor of entities establishing projects reducing GHG emissions after obtaining the approval of the relevant authorities which are not currently specified. Each CER unit shall represent the equivalent of one metric ton of carbon dioxide reduced.

Contents

In more detail

All governmental authorities, the public sector, the private sector and project developers shall be required to notify the Financial Regulatory Authority (FRA) and the Ministry of Environment of all projects for which CERs shall be issued. Moreover, entities for which CERs are issued shall be required to disclose any events or changes having an impact on approvals issued from the competent authorities throughout the term of the issuance.

A committee, "The CERs Supervisory and Monitoring Committee" shall be established by the FRA board of directors in coordination with the Ministry of Environment involving representatives from the relevant authorities to set the rules for the issuance and trading of CERs, as well as supervising and monitoring the same. EGX shall also issue the CERs trading rules which shall only apply after their ratification by the FRA. FRA shall hold a registry of the projects for which CERs are issued and shall inform the Ministry of Environment of such projects on a monthly basis.

Stay tuned for more updates on any upcoming developments on the topic.

*******

Baker McKenzie holds an outstanding record in climate change expertise and we were once again on the ground at COP27, which took place in Sharm El-Sheikh, participating in ground-breaking discussions and sharing insights to continue to offer cutting-edge advice to our clients. Our experts have long-standing experience advising on carbon markets, supporting both government and regulated entities in their implementation and participation in emission trading schemes and how carbon initiatives are developing around the world.

 

DO_NOT_USE_LOGO_Egypt Helmy Hamza & Partners_Cairo

© 2023 Helmy, Hamza and Partners. All rights reserved. Helmy, Hamza and Partners is a member firm of Baker & McKenzie International, a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

Contact Information
Lamyaa Gadelhak
Partner
Cairo
Read my Bio
lamyaa.gadelhak@bakermckenzie.com
Hania Meshref
Associate
Cairo
hania.meshref@bakermckenzie.com

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.