Press release from Environmental Economics Policy Forum for Ethiopia, Addis Ababa, Ethiopia 2011-07-20
Climate change is a serious threat to Africa, in general, and sub-Saharan Africa, in particular, as it is expected to have significant economic, social and environmental impacts. Although the region has the lowest average per capita GHG emission, mitigation is necessary not only to bring about sustainable development but also to encourage clean (green) growth and prevent the continent from becoming a major emitter. What possible mitigation strategies are there for Africa in general and Ethiopia in particular? A literature review, carried out by economists Dr. Zenebe GebreEgziabher and Dr. Alemu Mekonnen, lists out several strategies that can be implemented to meet this objective.
Dr. Alemu Mekonnen and Dr. Zenebe Gebreegziabher from EEPFE presenting their paper
Africa currently contributes only about 4 percent of global green house gases (GHG) emissions and yet suffers the consequence of climate change because of its vulnerability as a result of its overdependence on rain-fed agriculture, compounded by factors such as widespread poverty and weak adaptive capacity.
The Carbon Market which was introduced under the Kyoto Protocol avails a good opportunity for Africa if properly exploited. The carbon market includes three market-based mechanisms namely Emission Trading, Joint Implementation (JI), and Clean Development Mechanism (CDM) where the latter is designed to be implemented in developing countries. Despite the global economic downturn, the global carbon trading market grew 68 percent in 2009 compared with the previous year. CDM encourages investment in sustainable development projects that reduce emissions in developing countries. Understanding the opportunities created by the global carbon market and the challenges involved for Africa is important to efficiently utilize this mechanism.
Though Africa’s GHG emission is relatively insignificant, mitigation actions are necessary not only to enhance sustainable development but also prevent the continent from becoming a major emitter. Emissions from agriculture account for about 86 percent of aggregate GHG emissions of the continent and thus promoting emission reduction from farming and livestock systems could serve as an efficient mitigating strategy. Africa’s forest resources are serving as a carbon sink for about 25 percent of its emissions. Hence, avoiding deforestation, enhancing afforestation and reforestation, and improving agricultural and land management practices are essential components of mitigation for Africa. Similarly, promoting clean and efficient energy development is another crucial venture.
Unfortunately, little has been done in Ethiopia when it comes to tapping the global opportunities of carbon financing. Ethiopia has been implementing massive afforestation and reforestation programs which could possibly be linked to the Clean Development Mechanism (CDM). High forest areas could have good potential for Reducing Emissions from Deforestation and Forest Degradation (REDD) projects and the renewable energy options abundantly available could be utilized to replace biomass and fossil-fuel based energy system in the country. Ethiopia’s biogas program can be linked to carbon finance opportunities and improvements in agricultural and land management practices can also have substantial potential as carbon sink. Grazing systems can enhance the sequestration of carbon dioxide from the atmosphere hence selected rangeland systems can be linked to carbon finance for their agro-ecosystem services as a carbon sink and to provide income diversification options for pastoralists.
Perhaps one of the challenges of utilizing the carbon market through the CDM is the complex bureaucratic processes involved in generating CERs (Certified Emissions Reduction) for a CDM project. Regardless, utilizing the available carbon market and mitigating strategies will prove to be useful for the continent in general and Ethiopia in particular.
The research received funding from Sida, the Swedish International Development Cooperation Agency.
Time and place for public presentation: 09:00 am on Wednesday 20 July 2011 in Jupiter International Hotel, Cazanchis area, Addis Ababa, Ethiopia.
Title of the research:
Carbon Markets and Mitigation Strategies for Africa/Ethiopia: Literature Review and the Way Forward
More information, contact: Alemu Mekonnen, telephone+251 (0) 11 553 86 32, email alemu_m2004@yahoo.com
Zenebe GebreEgziabher, telephone +251 (0) 11 553 86 32, email zenebeg2002@yahoo.com
Press officer: Tsehay A. Hailemichael, telephone +251 (0) 11 553 86 32, email tsehayata@gmail.com