Ethiopia has unveiled a pioneering National Carbon Market Strategy to finance its low-emission ambitions through carbon pricing, industry engagement, and international partnerships, positioning itself as a leader in Africa’s environmental innovation.
Ethiopia is charting a pioneering course in environmental finance with the recent introduction of its National Carbon Market Strategy (NCMS), aimed at fostering the country’s ambitions for a low-emission economy by 2035. Unveiled by the Ministry of Planning and Development, the strategy is set to formalise mandatory carbon pricing on incoming international flights, a move inspired by practices in jurisdictions like the European Union. This approach is expected to generate significant revenue for Ethiopia, specifically earmarked to propel the nation’s green development targets, while carefully safeguarding domestic consumers and industries from financial strain.
Central to the new framework is the designation of Ethiopian Airlines as the primary domestic buyer of carbon credits. The airline, already a major international carrier, is poised to participate in established mechanisms such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Ethiopian Airlines’ engagement is anticipated to create a stable internal market for carbon credits arising from national mitigation projects including sustainable aviation fuel (SAF) initiatives and the electrification of ground transport. These efforts dovetail with the airline’s recent strides in sustainability, evidenced by its acquisition of Airbus A350-900 aircraft powered by 30% SAF blends and a strategic partnership with Satarem America Inc. to produce SAF locally. Such moves underscore Ethiopian Airlines’ commitment to the global aviation industry’s net-zero carbon aspirations by 2050.
The carbon market strategy aligns closely with Ethiopia’s Nationally Determined Contributions (NDCs) under the Paris Agreement, reflecting ambitious environmental goals such as achieving 100% renewable energy, increasing forest cover to 30%, adopting climate-smart agriculture, and promoting industrial innovation including carbon capture and storage (CCS). Financing these targets, particularly in mitigation sectors like renewable power generation, waste management, and transport, is estimated to require over USD 154 billion over three decades. While a significant financing gap persists, the government sees carbon markets as a crucial part of the solution, alongside instruments such as green bonds and ecosystem service payments.
Ethiopia’s experience with carbon market mechanisms, spanning the Clean Development Mechanism (CDM), voluntary carbon markets, and bilateral agreements under the Joint Crediting Mechanism, provides a foundation for the NCMS. The strategy is intended to ensure the country’s full compliance with Article 6 of the Paris Agreement, fostering robust legal, institutional, and technical systems. This includes creating a clear national carbon market law to define roles and responsibilities across ministries and agencies, ensuring transparency, accountability, and ethical conduct in carbon trading operations. Brokers involved in facilitating credit transactions will be subject to licensing, fee disclosures, conflict-of-interest provisions, and mandatory reporting to a national carbon registry, reinforcing market integrity.
The strategy also prominently features forestry sector development and landscape restoration, complementing Ethiopia’s acclaimed Green Legacy initiative, which has notably expanded forest cover to 23.6%. Memorable carbon trading agreements worth approximately USD 70 million have been signed with international partners, including a climate finance deal with Norway, which further illustrate Ethiopia’s growing engagement in global carbon markets and the green economy.
Taken together, these efforts position Ethiopia among forward-thinking nations leveraging carbon finance as a lever to reconcile economic growth with climate resilience. The NCMS, intended as a guiding framework until 2035, integrates with broader national policies and programmes, such as the 10-Year Development Plan and the Climate-Resilient Green Economy Strategy, which collectively aim to achieve the country’s long-term low-emission development pathway.
While challenges remain in implementing an effective carbon market, Ethiopia’s strategy offers a compelling blueprint for harnessing climate finance to accelerate carbon mitigation, foster sustainable industrial innovation, and promote equitable benefit-sharing. For stakeholders in industrial decarbonisation, Ethiopia’s evolving carbon market presents an instructive case of integrating aviation, forestry, and renewable energy sectors within a national climate strategy, supported by emerging regulatory clarity and international cooperation.
- https://www.thereporterethiopia.com/47835/ – Please view link – unable to able to access data
- https://www.mopd.gov.et/en/news/articles/ministry-has-confirmed-the-national-carbon-market-strategy-ncms-would-position-ethiopia-for-achieving-long-term-low-emission-economy-development-goals-05-feb-2025-mopdnonenone/ – The Ministry of Planning and Development of Ethiopia has confirmed that the National Carbon Market Strategy (NCMS) will position the country to achieve long-term low-emission economy development goals. The strategy aims to guide Ethiopia’s effective participation in both international and domestic carbon markets, in line with Article 6 of the Paris Agreement. It builds upon existing initiatives, including the Green Legacy Initiative, the Nationally Determined Contributions, the 10-Year Program for Development, and the Climate-Resilient Green Economy Strategy. The strategy also aligns with sectoral policies such as those for non-motorized transport, electrification programs, biogas, clean cooking, and irrigation. Additionally, it draws on Ethiopia’s experience with carbon market mechanisms, including the Clean Development Mechanism, voluntary carbon market programs, and bilateral cooperation under the Joint Crediting Mechanism. These combined efforts will position Ethiopia to achieve its Long-Term Low-Emission Development Strategy targets.
- https://www.ena.et/web/eng/w/eng_5908349 – The Ministry of Planning and Development of Ethiopia has confirmed that the National Carbon Market Strategy (NCMS) will position the country to achieve long-term low-emission energy development goals. The strategy aims to guide Ethiopia’s effective participation in both international and domestic carbon markets, in line with Article 6 of the Paris Agreement. It builds upon existing initiatives, including the Green Legacy Initiative, the Nationally Determined Contributions, the 10-Year Program for Development, and the Climate-Resilient Green Economy Strategy. The strategy also aligns with sectoral policies such as those for non-motorized transport, electrification programs, biogas, clean cooking, and irrigation. Additionally, it draws on Ethiopia’s experience with carbon market mechanisms, including the Clean Development Mechanism, voluntary carbon market programs, and bilateral cooperation under the Joint Crediting Mechanism. These combined efforts will position Ethiopia to achieve its Long-Term Low-Emission Development Strategy targets.
- https://unfccc.int/sites/default/files/resource/CiACA_Ethiopia_Carbon-Market-Strategy_2025.pdf – Ethiopia’s National Carbon Market Strategy (2025–2035) outlines the country’s approach to engaging in high-integrity carbon markets, aiming to unlock climate finance for sectors such as renewable energy, forestry, clean cooking, green industrialization, and e-mobility. The strategy is aligned with Article 6 of the Paris Agreement and focuses on strengthening legal, institutional, and technical systems to ensure effective participation and equitable benefit-sharing. It builds upon existing initiatives, including the Green Legacy Initiative, the Nationally Determined Contributions, the 10-Year Program for Development, and the Climate-Resilient Green Economy Strategy. The strategy also aligns with sectoral policies such as those for non-motorized transport, electrification programs, biogas, clean cooking, and irrigation. Additionally, it draws on Ethiopia’s experience with carbon market mechanisms, including the Clean Development Mechanism, voluntary carbon market programs, and bilateral cooperation under the Joint Crediting Mechanism. These combined efforts will position Ethiopia to achieve its Long-Term Low-Emission Development Strategy targets.
- https://corporate.ethiopianairlines.com/Press-release-open-page/ethiopian-airlines-takes-delivery-of-its-20th-a350-900-powered-by-sustainable-aviation-fuel-%28saf%29 – Ethiopian Airlines, the largest airline in Africa, has taken delivery of its 20th A350-900 aircraft from Airbus. The delivery flight used a 30% blend of Sustainable Aviation Fuel (SAF), reducing its carbon footprint and contributing to the ambition set by IATA, ATAG, and ICAO to reach net-zero carbon emissions by 2050. The airplane also carried 10 tonnes of humanitarian shipment into Ethiopia. This move underscores Ethiopian Airlines’ commitment to sustainability and its role in advancing green aviation practices.
- https://corporate.ethiopianairlines.com/Press-release-open-page/sustainable-skies-ethiopian-airlines%27-mou-with-satarem-marks-a-new-era-of-eco-friendly-travel – Ethiopian Airlines Group has signed a Memorandum of Understanding (MoU) with Satarem America Inc. to partner on the production and use of Sustainable Aviation Fuel (SAF) in Ethiopia. Satarem will produce SAF in the country, and Ethiopian Airlines has agreed to acquire the SAF from Satarem. This partnership marks a significant step towards a more sustainable and environmentally friendly future for Ethiopian Airlines, reflecting its commitment to combating climate change and investing in innovative solutions that support a sustainable industry.
- https://www.fanamc.com/english/ethiopia-aims-to-generate-70-million-revenue-from-carbon-trading/ – Ethiopian Forestry Development (EFD) has announced that Ethiopia has signed memorandums of understanding worth $70 million with various countries and international institutions for carbon trading. The Director-General of EFD, Mr. Kebede Yimam, highlighted that efforts made on green development strategy have contributed to the progress in the implementation of carbon trading. He recalled the climate partnership agreement signed by the Ethiopian Ministry of Finance and the Norwegian government. Additionally, he stated that the country’s forest cover has increased to 23.6% due to the Green Legacy initiative since 2019. Market research activities are being conducted to implement carbon trading in densely forested areas.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative introduces Ethiopia’s National Carbon Market Strategy (NCMS) and its consideration of mandatory carbon pricing for incoming international flights. The earliest known publication date of similar content is February 5, 2025, when the Ministry of Planning and Development confirmed the NCMS’s role in achieving long-term low-emission energy development goals. ([mopd.gov.et](https://www.mopd.gov.et/en/news/articles/ministry-has-confirmed-the-national-carbon-market-strategy-ncms-would-position-ethiopia-for-achieving-long-term-low-emission-economy-development-goals-05-feb-2025-mopdnonenone/?utm_source=openai)) The report from November 22, 2025, provides updated information, including the designation of Ethiopian Airlines as the primary domestic carbon credits buyer and the potential implementation of mandatory carbon tariffs. This suggests the content is fresh, with the latest developments incorporated. However, the presence of similar narratives in earlier publications indicates a degree of recycled content. Additionally, the report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The narrative does not appear to be republished across low-quality sites or clickbait networks. Overall, the freshness score is 8.
Quotes check
Score:
9
Notes:
The report includes direct quotes from government officials and experts. The earliest known usage of similar quotes is from the Ministry of Planning and Development’s announcement on February 5, 2025. ([mopd.gov.et](https://www.mopd.gov.et/en/news/articles/ministry-has-confirmed-the-national-carbon-market-strategy-ncms-would-position-ethiopia-for-achieving-long-term-low-emission-economy-development-goals-05-feb-2025-mopdnonenone/?utm_source=openai)) The quotes in the November 22, 2025, report are consistent with those from earlier publications, indicating potential reuse. No variations in wording were noted. The absence of online matches for some quotes suggests they may be original or exclusive content. Overall, the quotes check score is 9.
Source reliability
Score:
7
Notes:
The narrative originates from The Reporter Ethiopia, a news outlet based in Ethiopia. While it provides detailed information on the NCMS and Ethiopian Airlines’ role, the outlet’s reputation and credibility are not widely established. The report includes information from the Ministry of Planning and Development and mentions Ethiopian Airlines’ recent activities, which are verifiable through other reputable sources. However, the lack of broader coverage from well-known international media outlets raises questions about the source’s reliability. Overall, the source reliability score is 7.
Plausability check
Score:
8
Notes:
The narrative presents plausible claims regarding Ethiopia’s NCMS and its consideration of mandatory carbon pricing for incoming international flights. The designation of Ethiopian Airlines as the primary domestic carbon credits buyer aligns with the airline’s known commitment to sustainability, including its acquisition of Airbus A350-900 aircraft powered by Sustainable Aviation Fuel (SAF). ([corporate.ethiopianairlines.com](https://corporate.ethiopianairlines.com/Press-release-open-page/ethiopian-airlines-takes-delivery-of-its-20th-a350-900-powered-by-sustainable-aviation-fuel-%28saf%29?utm_source=openai)) The report also mentions Ethiopia’s Green Legacy Initiative, which has expanded forest cover to 23.6%, generating carbon credits. ([ethiopiantribune.com](https://ethiopiantribune.com/2025/04/ethiopias-carbon-revenue-achievement/?utm_source=openai)) While the narrative lacks supporting detail from other reputable outlets, the claims are consistent with known information. The language and tone are consistent with the region and topic, and there are no excessive or off-topic details. Overall, the plausibility check score is 8.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative provides updated information on Ethiopia’s National Carbon Market Strategy and its consideration of mandatory carbon pricing for incoming international flights. While the content is fresh and includes verifiable details, the source’s reliability is uncertain due to the lack of broader coverage from well-known international media outlets. The plausibility of the claims is supported by known information, but the absence of supporting detail from other reputable outlets raises questions. Therefore, the overall assessment is OPEN with medium confidence.
