Carbon credit trading has the potential to reduce the global cost of implementing Nationally Determined Contributions (NDCs) by more than half, potentially saving up to $250 billion by 2030, according to Egypt’s Minister of Planning and Economic Development, Rania Al-Mashat.
Speaking at the Financial Regulatory Authority’s (FRA) conference, which marked the launch of Egypt’s first regulated carbon market, Al-Mashat emphasised the market’s pivotal role in increasing the green economy’s contribution to the national GDP and attracting further green investments.
She acknowledged the World Bank’s vital technical support in establishing this voluntary carbon market, highlighting it as a collaborative effort that positions Egypt as a regional leader in the green economy. Additionally, the ministry is working with the European Union through the Technical Assistance and Information Exchange Instrument (TAIEX) to support the Carbon Border Adjustment Mechanism (CBAM), benefiting key national entities.
Al-Mashat also stressed the significance of energy projects under the Nexus of Water, Food, and Energy (NWFE) programme, which is central to Egypt’s environmental strategy and aims to reduce carbon dioxide emissions by 17 million tonnes annually.