Decree No. 31/2024 details the process for listing and delisting carbon credits on Egyptian exchanges.
Registration Process
1) Project Registration with FRA: Before listing, projects must be registered in the FRA's Carbon Reduction Projects Database. This involves submitting an application and relevant documentation, including proof of carbon credit issuance post-Paris Agreement ratification, environmental impact assessments (if applicable), and validation and verification reports.
2) Listing Application to the Exchange: After FRA registration, an application to list carbon credits is submitted to the exchange. This application includes details about the project, the registry, and the carbon credits.
3) Committee Review: The exchange's Steering Committee reviews listing applications and makes decisions within five days.
4) Listing and Trading: Following the committee's approval, carbon credits are listed and traded based on the exchange's rules and regulations.
Disclosure and Delisting
- Disclosure Obligations: Carbon credit owners must inform the exchange about any significant information that might impact trading.
- Optional Delisting: Owners can request to delist carbon credits, for example, for retirement or transfer to a non-tradable account.
- Compulsory Delisting: Circumstances like project removal from the FRA database, violations, or project incompletion can lead to forced delisting. In such cases, the project owner or financer must repurchase the delisted certificates from investors.
Appeals Process: Applicants can appeal against the committee's decisions on listing or delisting. Appeals first go to the Exchange's Board of Directors and, if necessary, can be escalated to the FRA.
