The Ethiopian House of Peoples’ Representatives officially approved the nation’s first Carbon Market Proclamation during its 29th regular session on Tuesday. Passed by a majority vote, the new legislation establishes a comprehensive legal framework for carbon trading across the country.
This legal framework aims to operationalize Ethiopia’s National Carbon Market Strategy, which spans from 2025 to 2035. By regulating the sector, the government intends to formalize carbon trading mechanisms and create structured pathways for environmental financing.
According to Mr. Desalegn Wedaje, Chairperson of the relevant parliamentary standing committee, the proclamation significantly enhances Ethiopia’s capacity to combat climate change. He noted that the law will help the country fulfill its international climate obligations, including commitments under the Paris Agreement.
The newly enacted law replaces previously fragmented practices in the sector with a unified, transparent, and consistent regulatory system. Officials anticipate that this structured approach will minimize administrative inefficiencies and provide clear guidelines for both local and international environmental projects.
Supporters emphasize that the proclamation will attract high-quality green investment inflows and accelerate technology transfer to Ethiopia. However, the ultimate success of the initiative will depend on how effectively the regulatory framework is implemented and monitored over the coming decade.