After months of negotiations, Indonesia and Japan signed a mutual recognition agreement for bilateral carbon trading (MRA) on 18 October 2024. The MRA, which came into effect on 28 October 2024, is expected to support Indonesia and Japan to meet their climate change mitigation efforts, and also to draw investors into the carbon sector for both countries.
Malaysia is slated to have a comprehensive framework to regulate, implement and enforce actions/initiatives that is aimed to lead towards a low-carbon economy. The Ministry of Natural Resources and Environmental Sustainability is leading the initiative for the proposed enactment of the Climate Change Act by issuing a consultation paper to obtain comments and feedback. The introduction of a Climate Change Act is the result of Malaysia’s determination to honor its commitment under the Paris Agreement and also to reduce greenhouse gas emissions in Malaysia.
On 22 August 2024, Legislative Decree No. 1629 was published, amending Article 2 of Law No. 31992, Law for the Promotion of Green Hydrogen, which aims to promote the development of green hydrogen from renewable energy resources.
Since the landmark Climate Change Conference (COP 27) in Sharm El-Sheikh, Egypt has been on a mission to revolutionize its carbon trading market. This journey began with Prime Ministerial Decree No. 4664 of 2022, which set the stage for a voluntary carbon market platform within the Egyptian Stock Exchange. Recently, the Egyptian Financial Regulatory Authority introduced a series of groundbreaking regulations to create a robust framework for the accreditation, issuance, listing, delisting, and trading of carbon emissions reduction certificates.
Federal Law No. 14.904/2024 was published. The law establishes guidelines for the preparation of climate change adaptation plans, with the aim of guiding the implementation of measures to reduce the vulnerability and exposure to risks of environmental, social, economic and infrastructure systems, in the face of the current and expected adverse effects of climate change.
On 26 July 2024, the Ministry of Energy Transition and Water Transformation announced the introduction of the Corporate Renewable Energy Supply Scheme, set to commence in September 2024. This initiative aims to enhance corporate companies’ access to green electricity supply through an open grid access system whereby third parties can supply or purchase electricity via the grid network system with a predetermined system access charge.