Egypt is offering soft loans and incentives to encourage more firms to enrol for carbon offset credits to trade.
Egypt is a small player in the Kyoto Protocol’s Clean Development Mechanism (CDM) that allows carbon savings from clean energy projects in developing states to be sold to buyers in rich nations seeking to meet mandatory emissions targets.
At present, four Egyptian firms are part of the UN-approved list that have traded projects with $200m in investment, eight are in the process of registration, four more are to be approved and 43 other firms and projects have been identified as potential candidates.
All approved or identified projects together will reduce carbon emissions by about 8 million metric tons per year and would involve investments worth about $1.3bn.
Egypt aims to gain 20% of its energy needs from renewable energy by 2020.