Egypt sells UN carbon credits to boost export competitiveness
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Egypt’s Environmental Affairs Agency (EEAA) began accepting bids on Sunday from companies and banks to purchase UN-certified carbon credits, marking the first time the country has offered these credits directly.
The EEAA will accept offers until October 31, distributing credits on a first-come, first-served basis. These credits represent reductions in carbon dioxide emissions achieved through national projects and allow buyers to offset their own emissions without investing in expensive green technology.
Until now, the EEAA used these Certified Emission Reductions (CERs) to offset emissions from its own projects. By selling them, Egypt aims to generate revenue from its existing environmental initiatives and help exporters meet increasingly strict emissions standards set by international buyers. Companies can use the credits by receiving a UN cancellation certificate, demonstrating their offset without needing to hold or transfer the credits themselves.
Bidders will submit sealed envelopes with technical and financial offers, naming their own price per ton of carbon dioxide. The EEAA will evaluate bids based on global credit prices, seeking the highest possible return. However, buyers must pay in full upfront and the UN will only process cancellations requested before November 25, creating a limited window for purchases. These credits will not satisfy requirements under the EU’s Carbon Border Adjustment Mechanism, which demands actual emissions reductions.
