Egypt boosts green finance with voluntary carbon trading market
Government is also ramping up green energy projects, with plans to save $4.1 billion a year by adding renewable energy capacity to national grid
A worker cleans solar panels at the Benban Solar Energy Park in Aswan, Egypt. (Photo: Getty Images)
In a move considered crucial to mobilize green financing in the region, Egypt has launched its first voluntary carbon trading market. Companies will henceforth be able to use the market to register, buy and sell carbon certificates in Egypt and across Africa, creating a powerful incentive for investment in projects that reduce emissions.
Opening the market is an important step towards economic and environmental sustainability for Egypt and will position the country as a regional leader in the green economy, Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, said at an event this week to mark the launch, Arab News reports. Several companies have reportedly already purchased credits this week.
The Egyptian government is also ramping up green energy projects, with plans to save $4.1 billion a year by adding up to 30 gigawatts of renewable energy capacity to its national grid in coming years.
The developments mark a turnaround for Egypt, where extreme heat waves, combined with a crippling financial crisis, forced the government to cut electricity for up to three hours a day earlier this summer. An IMF-prescribed rescue package has since spurred a wave of reform and economic investment, with a heavy focus on green industries.