Almost half of the population of Africa does not have access to electricity. It is, therefore, critical for the continent to increase its access to a clean, decarbonized, decentralized energy supply.
To enable this energy transition, countries across the continent are implementing policies that take into account the energy crisis. Alongside other jurisdictions, they are also launching initiatives and providing funding, investments and grants for African renewable energy projects.
A recent Prime Ministerial Decree No. 4664 of 2022 was published on 25 December 2022, incorporating new provisions to the executive regulations of the Capital Markets Law No. 95 of 1992. The Decree provides for the establishment of a voluntary carbon market platform within the Egyptian Stock Exchange for the trading of carbon emissions reduction certificates (CERs). The CERs are tradeable financial instruments for greenhouse gases and are to be issued in favor of entities establishing projects reducing greenhouse gas emissions after obtaining the approval of the relevant authorities which are not currently specified. Each CER unit shall represent the equivalent of one metric ton of carbon dioxide reduced.
Baker McKenzie and Trench Rossi Watanabe* were again on the ground at this years’ COP27 conference held in Sharm-el-Sheik. The team led a three-part webinar series focused on developments and impact of this year’s COP on emerging markets and key takeaways following the event, which they note had a strong focus on implementation.
COP27 held in Sharm El-Sheikh, Egypt was anticipated by many as an “Implementation COP” to build on the agreements reached at COP26 in Glasgow. In this 45-minute webinar, we will discuss the key outcomes from COP27 and what we expect the key trends and developments to be in 2023 and beyond.
Ahead of our participation in COP27 in Sharm El-Sheik, Egypt, in November, we will explore in this webinar how the new mechanisms agreed under Article 6 of the Paris Agreement can play a key role in NDC implementation. Our focus will be on both the opportunities these mechanisms provide and the near-term challenges to accessing these.
The government of Egypt has now expressly recognized the production, storage and export of green hydrogen and green ammonia among the areas falling within the state’s economic development strategy. It has also passed a decree that would allow green hydrogen and green ammonia projects to benefit from a wide range of state support under the country’s existing Investment Law No. 72 of 2017, including tax incentives. This is a key development for Egypt’s hydrogen economy.
Given current energy transition needs and a reshaping of policy going forward, financing is a key to achieving investment milestones and project development goals. Join us for this 60 minute discussion where Baker McKenzie energy and financing practitioners will discuss the options, trends and considerations to help bring clarity as project sponsors, lenders and investors move forward with their energy transition strategy.