Ethiopian Informer
ADDIS ABABA (EI) — The House of People’s Representatives (HoPR), the lower house of the Ethiopian parliament, has officially passed the country’s draft Carbon Market Proclamation.The landmark legislation aims to fully formalize the country’s carbon trading sector and streamline its transition toward a sustainable green economy.
Desalegn Wedaje, chairperson of the HoPR’s Planning, Budget, and Finance Affairs Standing Committee, presented the committee’s foundational report and resolution during Tuesday’s regular legislative session.
He lauded the bill as a cornerstone statutory framework that seamlessly integrates domestic environmental initiatives with global climate pacts, most notably the Paris Agreement.
He emphasized that the proclamation will play a decisive role in building an environment capable of meeting the country’s greenhouse gas emission reduction targets.
According to the committee’s resolution, a structured regulatory framework is a critical necessity given Ethiopia’s acute vulnerability to the adverse effects of climate change.
By establishing clear legal and institutional mechanisms, the new law is designed to lower investment barriers, paving the way for high-quality green financing and international technology transfers.
The new legislation replaces a previously fragmented regulatory landscape, as prior carbon transactions in Ethiopia were conducted without a centralized operating system, relying on disjointed rules.
The newly approved law consolidates these scattered regulations into a single, cohesive framework to ensure operational consistency, market transparency, and administrative efficiency.
During the parliamentary floor debate, lawmakers widely endorsed the proclamation, emphasizing its potential to attract sustainable foreign utility investments and modernize local climate-resilience projects.
Following these deliberations, the HoPR ratified the Ethiopian Carbon Market Proclamation by a majority vote.
(Photo Credit — The House of People’s Representatives via Facebook)
