Egypt’s financial regulator approved on July 18 a legal framework for issuing green bonds, with the aim of providing financial tools to fund eco-friendly projects in the fields of new and renewable energy, construction and transport.

“[We] will unveil regulations and measures necessary for the issuance of green bonds in accordance with the best international applications, as part of a partnership with the International Financial Corporation [IFC] and in tandem with the principles of issuing green bonds released by the International Capital Market Association,” said Mohammed Omran, head of the Egyptian Financial Supervisory Authority, according to local media.

Omran said the most important measures are identifying the concept and types of green bonds, the fields of using them in financing eco-friendly projects, and the bodies that can issue green bonds as well as the requirements of their issuance. “The regulations also include measures to assess and choose eco-friendly projects, the compliance of such projects with clean environment requirements, disclosure to investors and periodical statements,” he added.

According to the IFC, green bonds “generate financing for projects in renewable energy, energy efficiency, sustainable housing and other eco-friendly industries.”