Capital Market Authority Board of Directors Resolution No. (57) of 2023

The Egyptian Gazette - No. 85 (Continued) dated April 11, 2023

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Capital Market Authority

Resolution No. 57 of 2023
dated March 27, 2023

Regarding the Supervisory and Monitoring Committee for Carbon Emission Reduction Units and Their Characteristics

The Board of Directors of the Capital Market Authority,
Having reviewed the Capital Market Law issued by Law No. 95 of 1992
and its Executive Regulations;
And the Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments;
And after coordination with the Ministry of Environment;
And upon approval by the Authority's Board of Directors in its session held on March 27, 2023;

Resolved:

(Article One)

The Supervisory and Monitoring Committee for Carbon Emission Reduction Units is established, presided over by
the Chairman of the Capital Market Authority or his delegate, and comprising:

• 1. Four representatives from the Capital Market Authority, selected by its Chairman.
• 2. Four representatives from the Ministry concerned with environmental affairs, selected by the relevant Minister.
• 3. A representative from the Egyptian Exchange, selected by its Chairman.
• 4. An expert member from entities operating in carbon markets, selected by the Committee Chairman.

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(Article Two)

The Committee referred to in Article One of this Resolution shall be responsible for the following:

• 1. Preparing rules regarding the issuance of carbon emission reduction certificates.
• 2. Preparing supervisory and monitoring rules for carbon emission reduction certificates, including continuous disclosure and transparency requirements for carbon emission reduction projects and programs.
• 3. Preparing criteria for selecting verification and validation bodies for carbon emission reduction projects.
• 4. Preparing guideline rules regarding the integrity and credibility standards of carbon emission reduction certificates.
• 5. Preparing conflict-of-interest rules for parties involved in the issuance of carbon emission reduction certificates.
• 6. Preparing rules for determining registers of carbon emission reduction certificates whose issued certificates are considered tradable.
• 7. Coordinating with relevant authorities to establish (the Egyptian Register of Carbon Emission Reduction Certificates).
• 8. Describing the types of carbon emission reduction certificates.
     The Committee shall also perform any other tasks related to its work as assigned by its Chairman.
     The aforementioned rules shall be approved by the Authority's Board of Directors.

(Article Three)

The Committee shall convene upon invitation by its Chairman, at least once a month or as needed, at the Capital Market Authority headquarters or any other location designated by the Committee Chairman.
The Committee's meetings shall not be valid unless a majority of its members are present.

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(Article Four)

The Committee shall have a technical secretariat established by a decision from the Committee Chairman, responsible for:

• 1. Preparing and organizing committee meetings, including issuing meeting invitations, preparing agendas and presented topics, and sending them.
• 2. Recording committee meeting minutes, notifying concerned parties of the Committee's decisions, monitoring the implementation of those decisions, and preparing necessary follow-up reports.
• 3. Archiving files related to topics presented in committee meetings, meeting minutes, and documents discussed by the Committee during its sessions.
• 4. Performing other tasks assigned to it by the Committee Chairman.

(Article Five)

This Resolution shall be published in The Egyptian Gazette and on the websites of the Authority and the Egyptian Exchange, and shall take effect from the day following its publication date.

Chairman of the Board of Directors
Capital Market Authority
Dr. Mohamed Fared Saleh