Addis ababa: The House of People's Representatives (HPR) has ratified the Ethiopian Carbon Market Proclamation today. In its 29th regular session, the House endorsed the draft Carbon Market Proclamation to establish a comprehensive legal framework for carbon trading.
According to Ethiopian News Agency, the legislation is designed to operationalize the country's National Carbon Market Strategy (2025-2035). It aims to attract green investment, regulate carbon credits, and ensure transparent revenue sharing. Desalegn Wedaje, Chairperson of the HPR Plan, Budget, and Finance Affairs Standing Committee, highlighted that the proclamation creates an environment conducive to implementing international treaties ratified by Ethiopia, including the Paris Agreement, thereby fulfilling the nation's pledges to reduce greenhouse gas emissions.
He further explained that as a country vulnerable to the impacts of climate change, the legislation provides the legal framework required to operationalize Ethiopia's carbon market strategy. The proclamation establishes the institutional mechanisms and regulatory clarity necessary to foster green investments and facilitate technology transfer.
The law introduces a transparent legal structure to govern carbon trading operations, ensuring procedural consistency, transparency, and operational efficiency by consolidating fragmented rules into a unified framework. The House approved the legislation by a majority vote, with an abstention, enacting it as the Ethiopian Carbon Market Proclamation.