Carbon market development in Africa: Ethiopia as a model

Abstract Well-designed carbon markets have the potential to improve environmental conditions while generating revenue for communities, but a thorough understanding of regulatory and governance architectures, as well as socioeconomic impacts, is crucial for high-quality carbon market development. In countries with varying land ownership structures, effective implementation of a carbon market requires careful structural analysis. Ethiopia is a model for this, with both government ownership of all land and significant opportunity for carbon sequestration. First calculations suggest that by implementing carbon sequestration approaches, Ethiopia may be able to store 100 s of millions of tons of CO 2 e, translating to substantial revenue for any positive carbon price. However, carbon crediting systems need modification to ensure market success in this land ownership environment. Here, we show that leveraging government engagement in protected areas to establish model carbon market contracts is the most feasible first pathway for making these investments commercially attractive. Integrating sustainable land management practices and engaging communities can bolster the probabilities of success. For carbon markets to thrive in Africa, establishing frameworks that address governance structures and national development priorities is vital. Ultimately, policies that connect land administration, conservation, and economic development can empower African nations to build robust carbon markets that align with sustainable development goals.