Ethiopia's Council of Ministers has approved a draft carbon market proclamation to create a formal legal framework for carbon trading. The legislation aims to attract green investment, facilitate technology transfer, and increase access to international climate finance.
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The intent to regulate revenue distribution between the state and local communities is the most important part of this draft. Without clear rules on who owns the credits and how the money flows, these projects usually stall or lead to disputes.
True, but the policy is only half the battle. I want to see if this law includes specific requirements for grid interconnection for the green projects it hopes to attract. You cannot have a carbon market for energy projects if the transmission capacity is not there.
Ethiopia is pushing hard on the Climate-Resilient Green Economy initiative. This law is a necessary step to move from general strategy to actual trading, though the details on the safeguards for ecosystems are still vague.
Agreed. The article mentions safeguards but does not explain them. We need to know if they are using international standards or creating their own metrics for these carbon credits.
