Ethiopia, World Bank sign first emission reduction purchase accord-Xinhua

Ethiopia, World Bank sign first emission reduction purchase accord

Source: Xinhua| 2023-02-10 01:49:15|Editor: huaxia

ADDIS ABABA, Feb. 9 (Xinhua) -- The Ethiopian government on Thursday disclosed the signing of the first Emission Reduction Purchase Agreement (ERPA) with the World Bank.

The agreement was signed between the government of Ethiopia and the World Bank acting as a trustee of the Bio-Carbon Fund Initiative for Sustainable Forest Landscapes, the Ethiopian Ministry of Finance disclosed in a statement.

The ERPA Framework Agreement could grant up to 40 million U.S. dollars for results-based payment, which will be disbursed in two phases, as a result of reduced emissions through forest preservation and other environment-friendly land uses, including livestock management, according to the ministry.

The ministry said as part of the ERPA Framework Agreement, a specific agreement amounting to 15 million U.S. dollars has been signed for the first phase of the program.

As part of the first phase of the program, communities will be rewarded for efforts to reduce carbon emissions by preventing deforestation and land and forest degradation from January 2022 to December 2024, while the overall ERPA framework Agreement runs up to 2029, it said.

Out of the overall 40 million U.S. dollars package, 80 percent of it is expected to directly go to the participating communities.

The ERPA is said to be a continuation of the Oromia Forested Landscape Project supported by the World Bank, which envisaged reducing net greenhouse gas emissions and promoting sustainable land use practices to minimize deforestation and greenhouse gas emissions, including from the livestock sector throughout the Oromia regional state.

The ERPA Framework Agreement has been signed between Ethiopia's Minister for Finance Ahmed Shide, and Ousmane Dione, World Bank country director for Ethiopia, Eritrea, Sudan and South Sudan.