Ethiopia Advances Carbon Market Law to Attract Green Investment

-Draft legislation seeks to regulate carbon trading, support climate-finance ambitions

The Council of Ministers has approved a draft carbon market proclamation intended to establish a legal framework for carbon trading and expand the country’s access to climate finance.

The draft law, discussed during the Cabinet’s latest regular session, was unanimously endorsed for submission to Parliament after what officials described as extensive deliberations.

According to the government, the legislation is designed to operationalize Ethiopia’s carbon market strategy, encourage green investment and facilitate technology transfer.

The proposed framework would also define rules and procedures governing carbon trading activities while introducing safeguards aimed at protecting communities and ecosystems affected by carbon projects.

Officials said the law would establish mechanisms for equitable distribution of revenues generated through carbon trading among the government, project developers, local communities and other stakeholders.

The Cabinet added that the draft legislation is intended to help Ethiopia meet international climate commitments and greenhouse-gas reduction pledges under global agreements.

Ethiopia has increasingly positioned climate finance and green development as central pillars of its economic strategy, including through its Climate-Resilient Green Economy initiative.

المصدر: The Reporter (Ethiopia)