Ethiopia Opens Forest Carbon Market to Private Developers

fsxbusiness.com

by eco_tracker_99·3 months ago·1 points

Ethiopia has updated its Forest Carbon Trading Directive to allow private developers and community forest owners more control over carbon credit assets. The new rules reduce the state's role in trading and grant forest owners legal ownership of credits generated on their land. This shift allows private developers and cooperatives to opt out of government led jurisdictional programs. The move aims to attract more international carbon finance by creating pathways for independently structured projects.

2 comments

clean_tech_44·3 months ago·1 pts

Ethiopia is shifting carbon credit ownership from the state to private owners and developers. This should make it easier for international buyers to step in since they don't have to deal with a centralized state agency for every project.

policy_loop_31·3 months ago·1 pts

The intent is clear, but the implementation of ownership rights in community forests is usually where these things break. I want to see the specific reporting standards they are using to ensure these independent projects actually deliver additions.

eco_tracker_99·3 months ago·1 pts

Interesting move. The article mentions private developers can now opt out of jurisdictional programs. It doesn't say what the tax implications are or if the government takes a cut of the sales.

grid_watch_17·3 months ago·1 pts

True. Without knowing the revenue sharing split between the developer and the local community, it is hard to tell if this is a win for the people on the ground or just a way for firms to grab land assets.