On Mar. 3, EGX clarified standards for carbon reduction certificates.
EGX issued clarification No. 2 of 2024 for the carbon reduction certificates standards.
Document dated Mar. 3, 2024, received from EGX Jul. 22, summarized on Jul. 25.
Overview
Companies can use carbon reduction certificates to meet targets voluntary emission reduction to achieve carbon trading, other targets traded in voluntary carbon market.
Summarized carbon certificate cycle by the emergence of carbon emission reduction certificates, trading those certificates in addition to the elimination of the certificates.
Listed action that administration must take when determining accounting treatment.
Fix accounting treatment in light of arrangement and commercial purpose of purchase.
Specified information that company must disclose supplementing financial statements.
Effectiveness
Standards application is effective starting Jan. 2025, early application is permitted.
The establishments wishing to start an early application must disclose the application.
