Ethiopia has secured a significant financial boost for its green initiatives, announcing the signing of $70 million in memorandums of understanding (MOUs) for carbon trading with various international partners. The Ethiopian Forestry Development (EFD) confirmed the agreements, highlighting the nation's progress in green development as a key enabler.
According to EFD Director-General Kebede Yimam, the MOUs, which include partnerships with the World Bank, will generate $70 million through the sale of carbon credits. Kebede emphasized that Ethiopia’s commitment to its green development strategy has been instrumental in achieving this milestone.
The Director-General also pointed to the climate partnership agreement with the Norwegian government as a crucial factor in facilitating the carbon trading deals. Furthermore, he credited the successful Green Legacy initiative, launched in 2019, with significantly increasing the country's forest cover to 23.6 percent. This expansion of forested land has created the necessary carbon sequestration capacity for the trading agreements.
The EFD further stated that ongoing market research is being conducted to facilitate the implementation of carbon trading activities within Ethiopia's densely forested regions. This move aims to further leverage the country's natural resources for sustainable economic benefits and contribute to global climate action. The $70 million in MOUs signifies a major achievement for Ethiopia, recognizing its environmental stewardship and positioning it as a growing participant in the international carbon market, FBC learnt.
