Carbon market development in Africa: Ethiopia as a model

First calculations suggest that Ethiopia could store hundreds of millions of tons of CO2e, generating substantial revenue. However, existing carbon crediting systems need modification to succeed in this land ownership environment. Leveraging government engagement in protected areas to establish model carbon market contracts is identified as the most feasible initial pathway.

Integrating sustainable land management practices and community engagement can enhance success. For carbon markets to thrive in Africa, establishing frameworks that address governance structures and national development priorities is vital. Policies connecting land administration, conservation, and economic development can empower African nations to build robust carbon markets aligned with sustainable development goals.

Ethiopia’s climate mitigation actions focus on agriculture, forest protection, land-use change, forestry, and renewable energy. The country’s agricultural sector, which accounts for 50% of GDP and 80% of employment, offers many innovation opportunities for carbon markets. Ethiopia has a growing number of projects in energy, forestry, biodiversity, and sustainable land management, including the Humbo Community-Based Natural Regeneration Project, which was Africa’s first large-scale afforestation/reforestation project registered under the UNFCCC.