Ethiopia Drafts Centralized Carbon Rights Framework for Forest Carbon Trading

Ethiopia is moving toward a centralized system for managing forest carbon rights. A new draft proclamation from the Ministry of Planning and Development and the Ministry of Finance would make the federal government the default owner of all carbon rights, credits, and mitigation outcomes generated within the country. This overrides an earlier Ministry of Agriculture directive that gave full ownership to local forest owners. Under the proposed framework, private developers and communities would need state-approved contracts to prove ownership. A new Designated National Authority within the Ministry of Planning and Development would oversee the regulatory pipeline. The shift creates a clear hierarchy: the federal government claims sovereign ownership unless a specific contract says otherwise. For carbon project developers and investors, this means any forest carbon deal in Ethiopia will require government sign off. The earlier decentralized approach allowed local owners to trade directly or opt out of government programs. The new draft centralizes that authority, which could change how projects are structured and who gets paid.