Ethiopia, World Bank Sign First Emission Reduction Purchase Agreement

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, according to Ministry of Finance.

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 the 40 million USD, 80 percent directly goes to the participating communities, the ministry said.

The ERPA is a continuation of the Oromia Forested Landscape Project supported by the World Bank with 18 million USD financing.

It 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.

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

Source: Ethiopia News Agency