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Rami El-Dokany, Executive Chairman of The Egyptian Exchange (EGX), participated in the 10th Annual Rotary District-2451 Conference (Rotary - Egypt), which was held in El-Gouna from Thursday, May 4, 2023 till Sunday, May 7, 2023. It is the first environment-friendly Rotary conference.
In his speech, El-Dokany highlighted the significance of green financing and the reasons that prompted the international community to move towards sustainable finance. In addition, he pointed at the negative effects of development activities on the environmental status of the planet over recent decades such as water pollution, carbon emissions and deforestation. This called for the need to establish a market that funnels investments into green projects that reduce emissions, mitigate the negative impact of pollution or preserve biodiversity to ensure sustainable development.
El-Dokany referred to sustainable financing instruments, including green bonds, which are the most common among other mechanisms such as direct investment or loans. He also referred to the need for regulatory frameworks for green financing mechanisms in developing countries in general, and in Egypt in particular.
EGX Executive Chairman added that The Government of Egypt has recognized the importance of green finance in its National Climate Change Strategy and identified a financing gap of USD 153.6 billion in mitigation projects and USD 94.7 billion in adaptation projects with varying time spans until 2050.
El-Dokany said that EGX announced, in COP27, the establishment of the first voluntary carbon market in Africa and the Middle East, allowing companies in Egypt and Africa to work on emission-reducing projects to sell certified carbon credits. EGX is working with FRA to prepare the necessary legislative frameworks to activate the market.
It is worth mentioning that, in 2022, total value of global sustainable finance bonds amounted to USD c.744.3 billion, total value of global sustainable loans amounted to USD c.700 billion, total activity of equity capital markets for sustainable companies reached USD c.21.9 billion, and total value of mergers and acquisitions involving sustainable companies amounted to USD c.159.3 billion.
