A green EGX is coming to our market in mid-2023 to introduce a green financial instrument to trade, invest, finance, and create USD for the economy.
The Carbon Certificate Exchange Market will be influential on the market and economy; during a meeting at EGX, Rami El Dokany, Chairman of the EGX, stated the main objectives of the carbon market and its economic and environmental concessions.
Egypt is working on an African OPEC carbon market to play a significant role by 2030 in the global carbon market by targeting 7 million tonnes of carbon certificates ( one carbon certificate = 1 tonne of carbon emission) by the first three years only from Egypt, an evergreen market where it's the least organized and regulated at the African nation will be using the carbon exchange market, where Egypt will play a significant role on the international verification and listing of the carbon certificates to obliterate the undervalued carbon certificates prices.
The EGX, alongside the Agriculture bank of Egypt, will cooperate to use the agricultural land to create carbon certificates for the landlords as a source of financing for their land and ongoing expenses through Libra Capital which work as an aggregator for the carbon certificates from landlords and any green project owner who is willing to participate at this market.
Rami Also mentioned that Banks is in talks with the EGX to find a mechanism to enroll the certifi
cate issuance as part of the bank financing tools for the green projects. This step will encourage projects and use bank relations with clients to increase this market.
The Egyptian Exchange will Launch Africa's first Carbon Certificate Exchange Market During COP27
Carbon Certificates are a green financial instrument. Projects with zero carbon footprint or projects that reduce the carbon spread from the climate can issue these certificates against the amount of the calculated carbon footprint they eliminate from the environment, and those are the sellers of the carbon certificate.
The buyers are those whose production process emissions increase the carbon footprint and affect the climate negatively; these buis
ness depending on their calculated emission footprint, are the buyers of the carbon certificates where they buy the same amount of certificates equal to their emissions.
This financial instrument support and encourage green projects and stimulate buisness with a high carbon footprint to start reducing their emissions.
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