Food & Climate
Daltex, Egypt’s agribusiness player and one of the largest potato exporters, has purchased 1,500 international Verra carbon credits from VNV Advisory, valued at over EGP 1.3 million (USD 27,000), from the Punjab Agroforestry Project in India.
The Indian project, spanning over 500,000 hectares, is dedicated to enhancing small-holder farmers’ incomes through carbon revenue and uplifting their livelihoods.
The Daltex announcement is pioneering initiative as the first Egyptian private sector company to purchase international carbon credits through Egypt’s voluntary carbon market, the 1st of its kind in Africa, according to a statement that “Food & Climate” received today.
Carbon credit
Launched and regulated by the Financial Regulatory Authority (FRA) and the Egyptian Exchange (EGX), this groundbreaking voluntary carbon market marks a significant step towards a robust carbon credit economy in line with Egypt’s Green initiative and Vision 2030.
“We commend the FRA for launching Africa’s first voluntary carbon market, a game-changer that lets Egyptian companies like ours foster sustainability while strengthening our economy,” Hesham S. El Naggar, Vice Chairman of Daltex Corporation, stated.
“This pioneering step reinforces our decarbonization agenda, in line with Egypt’s broader goal of building a robust carbon credit economy”, he added.
“Purchasing carbon credits is only one side of this agenda as we also plan to acquire carbon credits from our own existing and future sustainability projects, establishing a strong foothold in the carbon credits economy. By trading international carbon credits locally, we are adding more value to our export projects, enhancing our overall export capabilities, and contributing to the local carbon economy,” El Naggar said.
Omar El Nemr, Lead, Project Management and Structuring, MEA at VNV Advisory Services, emphasized the significance of the collaboration, stating, “The Punjab Agroforestry Project is dedicated to creating sustainable agricultural models that transform farming practices in rural India, boosting farmer incomes, and achieving high-integrity carbon reductions. By providing Daltex with these credits through Egypt’s first voluntary carbon market, we are not only supporting local decarbonization efforts but also promoting sustainable practices on a global scale”.
This strategic move is set to strengthen Daltex’s position in the global market by enhancing the sustainability of its operations, thereby increasing the export potential of its agricultural products. Additionally, it supports Egypt’s leadership in developing a local carbon market, ensuring that the benefits of carbon trading directly contribute to the national economy.
The Punjab Agroforestry Project, led by VNV Advisory, is instrumental in Daltex’s sustainability journey. The project aims to diversify traditional farming practices, primarily the rice-wheat rotation, by introducing a mix of native and non-native tree species for plantation. This approach enhances carbon sequestration, supporting the long-term sustainability of agricultural practices in the region, according to the statement.
Punjab, being primarily focused on agriculture, relies on a traditional rice-wheat cropping system that has played a pivotal role in ensuring India’s food security, according the company’s website.
Facing challenges
However, certain regions are facing challenges such as nutrient depletion, declining groundwater tables, and an increase in pests and diseases due to overexploitation. These issues underscore the need for a shift away from the current cropping system.
So, Agroforestry has emerged as a promising alternative to diversify from the conventional rice-wheat rotation. Currently, the agroforestry sector meets over 80% of the country’s demand for wood and wood products, with 6% sourced from natural forests and 12% through imports.
While Daltex is Founded in 1964 by Dr. A. Samir El Naggar, Daltex has leveraged its deeply-rooted heritage, multi-regional footprint, and technical capabilities to bring premium quality Egyptian fresh produce to the homes of tens of thousands of families – both locally and overseas, according its website.
With a strong commitment and focus on sustainability, innovation, and social impact, Daltex has grown to become the leading exporter of Egyptian potatoes and a fully-integrated player operating across all aspects of the agricultural value chain – including land reclamation, cultivation and growing of fresh produce, storage and packing, as well as trading and importing seeds, fertilizers, crop protection and agricultural machinery.