The Financial Regulatory Authority (FRA) has finalised a legislative and executive framework for Egypt’s first carbon trading market. The government has amended a number of provisions of Law No. 95/1992 executive regulations, to consider carbon reduction certificates a financial instrument.
FRA has formed a committee to monitor carbon emission reduction units comprising representatives from the Ministry of Environment and the Egyptian Exchange, FRA officials and independent carbon market experts.
FRA has also laid out regulations for registering and delisting carbon certificates on Egyptian Exchanges and standards of local voluntary carbon registries.
Zero carbon certification is a designation given to buildings, products, or organisations that have achieved a net zero carbon footprint. This means that they have taken steps to reduce their greenhouse gas emissions as much as possible and have offset any remaining emissions through the purchase of carbon credits or investments in renewable energy projects. Moreover, FRA has set up an accounting methodology that deems carbon certificates as intangible, financial assets.
CBE withdraws liquidity worth LE3.7 trillion
The Central Bank of Egypt (CBE) withdrew last week liquidity worth LE3.7 trillion from local banks at 27.75 per cent interest rate. The transaction was carried out in five open market tenders.
The move is part of CBE’s role in managing banks’ excess liquidity for enhancing the impact of monetary policy. The fourth and fifth tenders amounted to LE1.05 trillion and LE872.550 billion last week, according to CBE data.
The first three bids totalled LE460.8 billion, LE667.25 billion and LE655.6 billion, respectively, the previous week.
Paid insurance claims jump 47.1%
Paid claims jumped by 47.1 per cent, year-on-year, to LE7.38 billion on the January-February period, compared to LE5.02 billion on the same period a year ago, according to data from the Financial Regulatory Authority (FRA).
Paid non-life claims leaped by 68 per cent to LE3.37 billion on the January-February period, up from LE2 billion in the same period a year earlier.
Paid life claims rose by 33.1 per cent to LE4 billion on the January-February period, against LE3.01 billion on the same period in 2023, according to FRA data.
Paid commercial claims rose by 45.7 per cent, year-on-year, to LE6.7 billion on the January-February period, compared to LE4.6 billion on the same period a year earlier.
Takaful claims jumped by 61.5 per cent, year-on-year, to LE678.9 million on the January-February period, against LE420.4 million on the corresponding period in 2023.
Premiums leap by 32.8%
Premiums increased by 32.8 per cent, year-on-year, to LE15.16 billion on the January-February period, up from LE11.41 billion a year earlier, according to FRA data.
Non-life premiums added 45 per cent, year-on-year, to LE8.02 billion on the January-February period, up from LE5.53 billion on the same period in 2023. Life premiums rose by 21.4 per cent to LE7.14 billion in the first two months of the year, compared to LE5.8 billion on the corresponding period in 2023, according to FRA data.
Commercial premiums 28.2 per cent, year-on-year, to LE13.1 billion on the January-February period, compared to LE10.25 billion on the same period a year ago.
Takaful premiums leaped by 73.5 per cent, year-on-year, to LE2.02 billion on the January-February period, against LE1.16 billion on the same period in 2023.
