Egypt builds new expertise hub for sustainable finance and carbon markets

Egypt’s Financial Services Institute has expanded the mandate of the Regional Center for Sustainable Finance and Carbon Markets, giving it a broader role in research, technical services, training, and capacity building as the country develops its sustainable finance and carbon markets.

The decision was issued by the institute’s board of directors, chaired by Financial Regulatory Authority (FRA) Chairman Dr. Islam Azzam. It replaces the center’s previous organizational framework and defines it as the institute’s technical, research, and training hub for sustainable finance.

Under the new mandate, the center will develop training programs for carbon market professionals, provide guidance on emissions reporting and climate disclosure standards, prepare monitoring, reporting and verification guides, and build capacity among carbon project developers.

“The decision enables the center to offer an integrated knowledge package starting with research and knowledge production, followed by the preparation of guides and curricula, through training and capacity building, up to professional certificate programs and the accreditation of specialists, and the development of databases and a specialized observatory, providing a broad information base to support training, studies, and advisory services,” Azzam stated.

The center will also prepare technical guides and research papers, organize conferences and workshops, develop professional performance indicators, support innovation in sustainable finance products and establish databases, a digital library and a sustainable finance observatory.

The FRA said the center’s designation as a “house of expertise” does not extend to regulatory, supervisory or legislative functions. Those responsibilities remain with the FRA and its General Department for Sustainable Development, while the center focuses on research, knowledge development, training, and technical and advisory services.

The decision also establishes an advisory board of experts to provide guidance on the center’s activities. Members will be selected by the Financial Services Institute’s board based on the chairman’s nomination, with terms lasting three years and subject to renewal.

The executive director of the center will serve as head of the central administration and oversee its operations, including executive plans and budgets, training and technical programs, periodic reports on sustainable finance and responsible investment, and cooperation agreements with external training and advisory organizations.

The expanded mandate comes as Egypt continues to develop its carbon market framework. Earlier this year, the FRA introduced requirements for certain non-banking financial services companies to report their carbon footprints and offset a portion of their emissions through the regulated voluntary carbon market.

Azzam said the center’s upcoming programs, indicators, databases, professional certificates and training guides will support the development of sustainable finance and carbon markets at both the national and regional levels.