FRA issues carbon certificates trading requirements for brokerage firms
Updated 7/23/2024 12:16:00 PM
Arab Finance: The Financial Regulatory Authority (FRA) has issued requirements for brokerage firms aiming to trade carbon emission reduction certificates, as per an official statement.
The move is part of the FRA’s efforts to accelerate the activation of the African voluntary carbon market.
The requirements stipulate that brokerage firms wishing to trade carbon certificates shall have a minimum issued and paid-up capital of EGP 15 million to obtain the FRA’s approval.
Additionally, the companies’ ownership rights shall not be less than paid-up capital.
Brokerage forms shall also provide the technological infrastructure, data protection means, and electronic systems needed to trade carbon certificates.
Moreover, they shall appoint an executive trained by the FRA to be in charge of carbon certificates trading.
Brokerage companies that fulfill all the requirements can submit a request to the FRA to obtain their carbon certificates trading license.
The FRA should respond to the submitted applications within one week, and if it does not respond, the applications are deemed rejected.
On August 28th, 2023, the FRA issued carbon credit verification and certification standards for local and foreign authorities aiming to issue voluntary carbon credits.
Related News
