Ethiopia reports 100 million tonnes of REDD+ results and sets out its Article 6 framework in first BTR
By Article 6 Network
In its Biennial Transparency Report, Ethiopia reported more than 100 million tonnes of CO₂e in REDD+ results over 2018–2022 and described its emerging framework for international carbon trading. The country has not yet authorised any Article 6 transfers. The report shows Ethiopia has large forest mitigation potential, while its market infrastructure is still being built.
Ethiopia’s BTR, submitted under the Paris Agreement’s Enhanced Transparency Framework, reports REDD+ results of more than 100 MtCO₂e for 2018–2022. It also describes the institutional and legal arrangements Ethiopia is developing for international carbon trading. It confirms that no Article 6 credits have been authorised for transfer so far.
Ethiopia’s framework has moved forward quickly this year. Parliament ratified a Carbon Market Proclamation, which international partners described as a sign of strong political will, though they noted remaining gaps in regulations and capacity. A directive on carbon credits establishes ownership, trading rights and regulatory oversight. It recognises carbon as a tradable asset, sets obligations for project owners to maintain forest integrity, and sets out benefit-sharing so that nearby communities, regional governments and the federal government receive a share of revenues.
These instruments sit within Ethiopia’s National Carbon Market Strategy for 2025–2035, developed with the UNFCCC’s CiACA initiative. The strategy builds on Ethiopia’s existing carbon market experience, including the CDM, voluntary projects and jurisdictional REDD+, and explores new areas such as carbon removals. It also stresses transparent and fair benefit-sharing.
Signals to watch
- Large forest supply, not yet authorised: 100 Mt of reported REDD+ results points to substantial potential supply. But results reported under the transparency framework are not ITMOs. Only mitigation authorised with corresponding adjustments, and not already counted towards Ethiopia’s NDC or results-based payments, can be sold. Watch for the first Letter of Authorisation.
- Avoiding double claims on REDD+ results: Ethiopia has received results-based REDD+ finance. Any Article 6 sale of forest outcomes must be clearly separated from results already paid for or claimed. Buyers will want registry-level clarity before purchasing.
- From law to regulations: The Proclamation and directive provide a legal basis, but implementing rules, an operational registry and authorisation procedures are still needed. Investors should track these, along with Ethiopia’s Article 6.2 initial report, as signs of readiness.
- Benefit-sharing as a selling point: Legal recognition of community revenue shares could strengthen Ethiopia’s integrity case with buyers who prioritise social safeguards. Implementation will need transparent tracking of payments.
- Buyer engagement ahead: Ethiopia has not yet recorded transfers. Watch for bilateral agreements with buyers such as Switzerland, Singapore, Japan, Sweden or Norway, which could give the pipeline a demand anchor.
Sources:
- Carbon Pulse – Ethiopia’s new carbon market law reveals strong political will
- Big3Africa – Ethiopia launches carbon credit framework
- UNFCCC CiACA – National Carbon Market Strategy for Ethiopia
- ICAT – Guidance on how to get ready for Article 6 implementation in Ethiopia
