Ethiopia signs the first Emission Reduction Purchase Agreement with the World Bank

Addis Ababa, February 9, 2023 (FBC) – The Emission Reduction Purchase Framework Agreement (ERPA) has been 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 ERPA Framework Agreement could grant up to 40 million USD 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.

In addition, specific ERPA agreement amounting 15 million USD for the first phase of the program has been signed. In this program the 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 ERPA framework Agreement runs up to 2029. Out of 40 million USD 80% directly goes to the participating communities.

The ERPA is a continuation of the Oromia Forested Landscape Project supported by the World Bank with 18 million USD financing which starts implementation on April 2017 with the aims of reducing net GHG emissions and promoting sustainable land use practices to minimize deforestation and GHG emissions, including from the livestock sector, throughout the Oromia regional state, according to the Finance Ministry.

Ahmed Shide, Minister for the Ministry of Finance and Ousmane Dione, country director for Ethiopia, Eritrea, Sudan and South Sudan signed the framework agreement on behalf of the Ethiopian Government and the World Bank respectively.