Ethiopia’s unwavering commitment to the development of its forestry industry is set to reap substantial financial rewards. According to Ethiopian Forest Development (EFD), the country is projected to earn approximately $100 million in revenue from carbon trade by 2030.
Yitebtu Moges (PhD), Coordinator of EFD’s National Red Plus Program, revealed that Ethiopia has embarked on selling carbon credits to the World Bank as part of its plan to generate this impressive sum within the next seven years. Over the past decade, the country has already earned $150 million in revenue through various activities, with the support of the World Bank and Norway.
This lucrative financial incentive is a testament to Ethiopia’s commendable efforts in protecting and enhancing its forest cover, effectively reducing carbon emissions. Moges emphasized that carbon trading is a long-term endeavor, influenced by market conditions. Currently, the payment received is determined by the quantity and size of the forest, as measured in tons of carbon content.
Beyond the economic benefits, the preservation of ecosystems and the maintenance of climate balance are also key outcomes of this carbon trading initiative. Moges further highlighted the collaborative efforts with foreign assistance, particularly the recent agreement with the World Bank, which will provide 40 million euros for forest maintenance in the Oromia region. Additionally, one million hectares of forest in the Southwest Ethiopia People’s Region are being conserved and managed, with support extended to the local population.
This large-scale initiative not only aims to enhance income opportunities but also prioritizes sustainable forest management practices. Moges emphasized the significance of expanding the national-level Green Legacy Program, calling on the government to allocate additional resources to support the sector given its substantial economic potential.
Ethiopia’s achievements in the forestry industry extend beyond its contributions to global climate goals. By actively engaging in carbon trading, the country has positioned itself to lead the market, with the potential to generate billions of dollars annually from this sector. Moges proposed the establishment of a national carbon center, bringing together both domestic and international experts, to support Ethiopia in fulfilling its commitment to reducing carbon emissions as outlined in the Paris Agreement.
With such a lucrative opportunity on the horizon, Ethiopia’s forestry industry stands poised for growth, offering both environmental and economic benefits. This emerging sector holds great promise for the country and presents an exciting prospect for investors and stakeholders alike.
