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- Reinforcing the Egyptian carbon economy through purchased carbon credits, adding value to Daltex export projects
- Daltex plans to acquire carbon credits on its existing and future projects, solidifying its role in the carbon economy.
Cairo, Egypt– Daltex, Egypt's leading agribusiness player and the largest potato exporter globally, proudly announces its pioneering initiative as the first Egyptian private sector company to purchase international carbon credits through Egypt’s voluntary carbon market, the 1st of its kind in Africa.
Launched and regulated by the Financial Regulatory Authority (FRA) and the Egyptian Exchange (EGX), this groundbreaking voluntary carbon market marks a significant step towards a robust carbon credit economy in line with Egypt’s Green initiative and Vision 2030.
In this milestone deal, Daltex has acquired 1,500 international Verra carbon credits from VNV Advisory, valued at over EGP 1.3 million (USD 27,000), from the Punjab Agroforestry Project in India. This project, spanning over 500,000 hectares, is dedicated to enhancing small-holder farmers’ incomes through carbon revenue and uplifting their livelihoods.
“We commend the FRA for launching Africa's first voluntary carbon market, a game-changer that lets Egyptian companies like ours foster sustainability while strengthening our economy,” Hesham S. El Naggar, Vice Chairman of Daltex Corporation, stated, “This pioneering step reinforces our decarbonization agenda, in line with Egypt’s broader goal of building a robust carbon credit economy.”
“Purchasing carbon credits is only one side of this agenda as we also plan to acquire carbon credits from our own existing and future sustainability projects, establishing a strong foothold in the carbon credits economy. By trading international carbon credits locally, we are adding more value to our export projects, enhancing our overall export capabilities, and contributing to the local carbon economy,” El Naggar added
Omar El Nemr, Lead, Project Management and Structuring, MEA at VNV Advisory Services, emphasized the significance of the collaboration, stating, "The Punjab Agroforestry Project is dedicated to creating sustainable agricultural models that transform farming practices in rural India, boosting farmer incomes, and achieving high-integrity carbon reductions. By providing Daltex with these credits through Egypt’s first voluntary carbon market, we are not only supporting local decarbonization efforts but also promoting sustainable practices on a global scale."
This strategic move is set to strengthen Daltex’s position in the global market by enhancing the sustainability of its operations, thereby increasing the export potential of its agricultural products. Additionally, it supports Egypt’s leadership in developing a local carbon market, ensuring that the benefits of carbon trading directly contribute to the national economy.
The Punjab Agroforestry Project, led by VNV Advisory, is instrumental in Daltex’s sustainability journey. The project aims to diversify traditional farming practices, primarily the rice-wheat rotation, by introducing a mix of native and non-native tree species for plantation. This approach enhances carbon sequestration, supporting the long-term sustainability of agricultural practices in the region.