The Financial Regulatory Authority (FRA) of Egypt, led by Dr. Islam Azzam, has issued a regulatory decision to broaden the mandate of the Regional Centre for Sustainable Finance and Carbon Markets. This expansion enables the centre to act as a technical, research, and training hub, aligning with rapid developments in climate funding and establishing a professional ecosystem for a low-carbon economy. The centre will play a crucial role in supporting Egypt's sustainable finance and carbon markets initiatives.
The expanded mandate includes training carbon experts, instructing on emissions reporting and climate disclosure standards, and creating monitoring, reporting, and verification guides. The centre will also build capacity for carbon project developers, providing them with the necessary skills and knowledge to develop and implement carbon projects. This capacity building will contribute to the growth of a low-carbon economy in Egypt and the region.
The FRA has clarified that the centre's designated role as a "house of expertise" will not infringe upon the regulatory, supervisory, or legislative competencies of the authority or the General Department for Sustainable Development. The regulatory text distinguishes between knowledge production and regulatory oversight, ensuring the centre does not replace competent authorities in issuing rules. This clear delineation of roles will prevent any potential conflicts or overlaps.
Under the new mandate, the centre is tasked with creating technical guides, organising conferences, and developing professional performance indicators. The centre will also support innovation in sustainable finance tools and establish a digital library alongside a sustainable finance observatory. These initiatives will provide a comprehensive platform for sustainable finance and carbon markets development in the region.
The decision also restructures the centre's institutional framework by establishing an advisory board of experts. Members will be selected by the institute's board of directors, based on the chairman's nomination, for a renewable three-year term to provide guidance on the centre's activities. This advisory board will bring in external expertise and ensure the centre's activities are aligned with industry best practices.
The centre's executive director will hold the rank of head of a central administration, with responsibilities including managing operations, proposing executive plans and budgets, and overseeing periodic reports on responsible investment. The director will also be responsible for drafting cooperation agreements with external training and advisory bodies. This new structure will enable the centre to operate efficiently and effectively.
Dr. Islam Azzam emphasised the importance of the centre's forthcoming programmes, indicators, and professional certificates, noting they will contribute to achieving targeted progress in sustainable finance and carbon markets at both the national and regional levels. The centre's initiatives are expected to have a positive impact on Egypt's sustainable development and climate change mitigation efforts.
Key points
- The FRA's decision expands the Regional Centre for Sustainable Finance and Carbon Markets' mandate to support climate funding and low-carbon economy development.
- The centre will provide training and capacity building for carbon experts and project developers.
- The centre's new mandate includes creating technical guides, organising conferences, and developing professional performance indicators.
