Ethiopia has entered into an Emission Reduction Purchase Framework Agreement (ERPA) with the World Bank’s BioCarbon Fund.
Finance Minister Ahmed Shide and World Bank’s country director Ousmane Dione signed the agreement last week.
The BioCarbon Fund Initiative for Sustainable Forest Landscapes or ISFL supports community efforts to reduce carbon emissions.
Also read: Ethiopian cargo now flying to Xiamen and Shenzhen in China
The ERPA will enable the Fund to provide support for the first time in Ethiopia, targeting the Oromia Forested Landscape Program.
The agreement will back community efforts to reduce carbon emissions, and increase carbon sequestration through forest preservation and other environment-friendly land uses.
As per the World back, the target is to cut 4 million metric tons of Carbon Dioxide equivalent emissions through 2030.
The reward involves a total of 40 million US dollars in grants for results-based payment and disbursements in two phases, as per the Ministry of Finance.
“Signing this ERPA is a reason to celebrate,” Kebede Yimam, head of Ethiopian Forest Development, said.
“It is the culmination of our careful planning, increased partnerships, and political commitment to managing our forests,” he said, adding it is “a part of national efforts to combat climate change, build resilience, and ensure inclusive green growth,” Kebede added.
ERPA: “Reward for the hard work”
The ISFL’s previous support to the Oromia Forested Landscape Program help over 350 cooperatives in the region to engage in afforestation, reforestation, and participatory forest management, covering more than 195,000 hectares of natural forests.
Also read: Angola and Ethiopia sign general cooperation agreement
Over 46 million tree seedlings have been produced and more than 9000 hectares of land have already been reforested.
With the activities underway, the ERPA will now bring additional funding to the program in the form of results-based payments for verified emission reductions.
“We are proud to sign our first ERPA with Ethiopia and reward the hard work of changing how land is managed to avoid deforestation,” ISFL Fund Manager Roy Parizat said.