Egypt has launched Africa's first carbon market, marking a significant milestone in the continent's efforts to combat climate change.
The inauguration of a carbon trading platform opens Egyptian traders up to a growing global asset class that analysts from Morgan Stanley predict could be worth 250 billion U.S. dollars by 2050.
The newly launched market allows companies to issue and trade voluntary carbon certificates in Egypt and Africa, which can be bought by other companies wanting to offset their emissions.
"It's a financing tool for companies that want to reduce gas emissions in their projects by using carbon certificates. We will see an influx of companies seeking carbon credit financing. This is important to secure funds for their expansion plans," said Hossam Eid, head of Investments, Brokerage Firm.
Experts said the potential is huge as carbon credits cover a wide range of industries, from manufacturing to agriculture and renewable energy projects.
The government hopes the carbon credit certificates will also be an incentive to attract more investments to the country's stock market, which has slowed recently due to the ongoing geo-political instabilities in the region.
Egypt launches first carbon market in Africa to combat climate change
Egypt launches first carbon market in Africa to combat climate change
