House Approves Ethiopia's Carbon Market Proclamation

Addis Ababa, June 30, 2026 (ENA) — 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.

 

Designed to operationalize the country's National Carbon Market Strategy (2025–2035), the legislation aims to attract green investment, regulate carbon credits, and ensure transparent revenue sharing.

HPR Plan, Budget, and Finance Affairs Standing Committee Chairperson, Desalegn Wedaje,  underscored that the proclamation creates a highly conducive environment for implementing international treaties ratified by Ethiopia, including the landmark Paris Agreement, thereby fulfilling the nation's pledges to reduce greenhouse gas emissions.

He further explained that as a country vulnerable to the adverse impacts of climate change, the legislation provides the vital legal framework required to operationalize Ethiopia’s comprehensive carbon market strategy.

 

 

According to him, the proclamation also establishes the institutional mechanisms and regulatory clarity necessary to foster high-quality green investments and facilitate seamless technology transfer.

The law introduces a transparent legal architecture to govern carbon trading operations that lacked adequate systemic regulation, he noted, adding that the proclamation will guarantee procedural consistency, transparency, and operational efficiency by consolidating fragmented rules and directives into a single unified framework.

Finally, the House approved the legislation by a majority vote, with an abstention, enacting it as the Ethiopian Carbon Market Proclamation.