FRA has received approval to join the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) in a move that enhances Egypt’s presence on the green economy map. This step increases Egypt’s attractiveness to green investments and reflects the international appreciation for its efforts in the field of sustainable development.
Dr. Mohamed Omran – FRA’s Chairman emphasizes that FRA is committed to support and develop the markets under its supervision. Also, he states that FRA stresses on the importance of sustainable financing as one of the main tools for the growth of the economy in the near future. In this respect, members of the (NGFS) express their appreciation for FRA’s efforts, especially after they witness the Authority’s direction in adopting a strong supervisory approach to organize the gradual transition towards a sustainable financing system and a sustainable market.
Dr. Omran noted that the non-banking financial sector witnessed – in the previous two years – several steps to introduce green financial tools into the national economy. He added that FRA’s Board issued three influential decisions to regulate the first issuance in the capital market , starting with establishing a registry for local environmental observers who meet the Authority’s criteria and are qualified to monitor green projects in order to facilitate the issuance of green bonds in Egypt. That is besides exempting green bond issuers from 50% of services’ fees. Also, he noted that a great step has also been made in formulating the National Sustainable Insurance Strategy which is the first of its kind in the Arab region and Africa and which sets a roadmap for that activity in order to include principles for sustainable insurance.
Mr. Frank Aldrin, Head of the NGFS attributes unanimous acceptance of FRA’s membership to its commitment to addressing climate risk management. The network’s members ensured that FRA was fully convinced of the importance of sustainable development as a pathway to reach a new global economic, social and environmental reality. That is in addition to the network’s appreciation for FRA’s efforts to spread sustainable insurance and build the capabilities capable to activate it, besides the numerous achievements of the Authority in the field of sustainable development at the national level.
FRA’s Chairman explained that “One Planet Summit” held in Paris in December 2017 witnessed the establishment of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) by eight central banks and financial regulatory bodies. Since then the network’s membership has grown significantly across the five continents, where the membership is currently composed of 77 active members and 11 observer members. It is worth mention that the purpose of forming the network is strengthening the global response required to achieve the goals of the Paris Agreement and to enhance the role of the financial system in managing risks and mobilizing capital for green investments and low-carbon development. The network identifies best practices to be implemented within and outside the NGFS network. Also, it conducts the necessary analytical studies on green financing.
Dr. Omran emphasizes that the network has organized its work in five specialized work streams:
First: a working group to follow developments related to climate risks and environmental risks, second: a working group to follow up developments related to climate risks in the macro economy, third: a working group to expand the scope of Green Funding, fourth: a working group for research and development and finally a working group to bridge the data gaps needed for working groups.
It is worth noting that in September of this year, the Authority was accepted to join the FSB Regional Consultative Group for MENA in a qualitative step to enhance the financial stability of the non-banking financial activities sector.
This news item was originally published by the Finance Regulatory Authority (FRA EG). For more information, please see the Source Link.
