Naeem Brokerage secures FRA's approval to trade in Egypt's carbon market

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Naeem Brokerage has received a no-objection from the Financial Regulatory Authority (FRA) for a license to trade in the carbon market, the company's managing director Osama Gamal told Al Borsa News.

The company is finalizing its e-trading system and is expected to commence operations soon.

With this approval, Naeem is the third authorized firm in Egypt to trade carbon certificates, joining Beltone Securities Brokerage and Commercial International Brokerage.

Also, Gamal anticipates a significant increase in carbon market transactions as awareness of its importance grows.

The FRA has established guidelines for brokerage firms to obtain licenses for trading carbon emission reduction certificates, aiming to accelerate the activation of the African Voluntary Carbon Market.

Earlier this month, Egypt officially launched the first voluntary carbon market in the country and Africa.

On August 11th, the FRA, in cooperation with the Ministry of Environment, completed all the regulatory and procedural requirements for registering carbon emission reduction projects and launching the voluntary carbon emission reduction certificates market.

On July 23rd, the FRA issued requirements for brokerage firms aiming to trade carbon emission reduction certificates.

On August 28th, 2023, the authority issued carbon credit verification and certification standards for local and foreign authorities aiming to issue voluntary carbon credits.