Ethiopia Signs $40 Million Deal to Reduce 4 Million Tons of CO2 Emissions by 2030

Addis Ababa, Ethiopia (14 February 2023)

Ethiopia has inked a historic deal with the World Bank’s BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL) that incentivizes the community’s endeavors to lower carbon emissions by taking measures against deforestation, land degradation, and forest degradation.

The deal, referred to as the Emission Reductions Purchase Agreement (ERPA), enables a maximum of $40 million to help the community, government, and other stakeholders reduce carbon emissions and increase carbon sequestration through forest preservation and other environmentally friendly land uses.

According to WB’s press release, the agreement intends to reward initiatives that will lower approximately 4 million metric tons of CO2 emissions by 2030 under the Oromia Forested Landscape Program, Ethiopia’s ambitious project. The agreement with ISFL is the first ERPA of its kind.

The Oromia Forested Landscape Program seeks to reduce greenhouse gas emissions by improving forest and livestock management throughout the Oromia region, home to more than 30 million people and 52% of the country’s forests.

Wood extraction, slash-and-burn agriculture, and livestock farming are the primary causes of deforestation in the region. Since its implementation in 2017, the ISFL grant financing has supported the program, resulting in over 350 community cooperatives engaged in afforestation and reforestation activities and participatory forest management. Over 46 million tree seedlings have been produced, and more than 9,000 hectares of land have already been reforested.

Source: World Bank (WB)