Ethiopia's House of People's Representatives has approved the Ethiopian Carbon Market Proclamation, creating a legal framework for carbon trading. The law is designed to support the country's National Carbon Market Strategy (2025-2035) by regulating carbon credits, ensuring transparent revenue sharing, and attracting green investment. It also aims to help Ethiopia meet its emissions reduction pledges under the Paris Agreement. The proclamation consolidates fragmented rules into a single framework to improve transparency and operational efficiency. It establishes institutional mechanisms for high-quality green investments and technology transfer. Ethiopia, being vulnerable to climate impacts, sees this as a vital step to operationalize its carbon market strategy and reduce greenhouse gas emissions.
