Carbon Market Strategy to Position Nation Achieve Low-Emission Energy Development Goals

Addis Ababa, February 5, 2025 (ENA) - Ministry of Planning and Development has confirmed that the National Carbon Market Strategy (NCMS) would position Ethiopia for achieving long-term low-emission energy development goals.

International and local stakeholders held a consultation meeting that aimed to provide an update on the strategy’s progress, presenting a zero draft of the NCMS, which outlines its objectives, scope, and significance for relevant sectors and stakeholders.

Speaking at a meeting on the development of Ethiopia’s NCMS, State Minister of Planning and Development Seyoum Mekonen highlighted that the strategy will position the country to meet its goals.

The  State Minister emphasized that NCMS would play a pivotal role in enabling Ethiopia to meet its long-term low-emission energy development targets.

He noted that the strategy is designed to guide Ethiopia's effective participation in both international and domestic carbon markets, in line with Article 6 of the Paris Agreement.

It will build upon existing initiatives, including the Green Legacy Initiative, the Nationally Determined Contributions, the 10-Year Program for Development, and the Climate-Resilient Green Economy Strategy.

It will also align with sectoral policies such as those for non-motorized transport, electrification programs, biogas, clean cooking, and irrigation.

Furthermore, the strategy will draw on Ethiopia’s experience with carbon market mechanisms, including the Clean Development Mechanism, voluntary carbon market programs, and bilateral cooperation under the Joint Crediting Mechanism.

According to the state minister, these combined efforts will position Ethiopia to achieve its Long-Term Low-Emission Development Strategy targets.

The meeting also aimed to raise awareness and foster understanding among participants about the opportunities and challenges of participating in global carbon markets and focus was placed on Article 6 mechanisms of the Paris Agreement and their potential benefits for Ethiopia.

The session further emphasized the need for collaboration among key stakeholders, led by the Ministry of Planning and Development, in partnership with other relevant ministries and experts, to ensure a broad and inclusive approach to the strategy’s development.

Urban Benywanira, an expert on Article 6 and carbon pricing from the United Nations Framework Convention on Climate Change Regional Collaboration Centre for East and Southern Africa, on his part praised Ethiopia's efforts in developing the NCMS.  He described the initiative as timely and a positive step forward.

Benywanira expressed hope that once the strategy is finalized and adopted, Ethiopia will be able to guide entities wishing to participate in Article 6 mechanisms, with a particular focus on institutional arrangements.

Stephan Noch, Managing Director of Perspectives Climate Group, also shared insights during the consultation.

 

His firm, which specializes in international climate policy and finance, has been working in Ethiopia for 15 years, helping to define the country's national targets for the Paris Agreement and mobilizing finance for solar water pumping projects.

Noch also highlighted that Perspectives Climate Group is supporting the Ministry of Planning and Development in structuring the national carbon market, with support from the UN Climate Secretariat.