Since the industrial revolution, Carbon emission increases the global temperature by 1ºC. Considering the seriousness of its impact, world countries have been making an effort for almost 20 years to make negotiations and address the problem.
Dr. Yitebtu Moges the National Reduce Emissions from Deforestation and Forest Degradation, REDD+ Program Coordinator at Environmental Forest Climate Change Commission (EFCCC) told The Ethiopian Herald there are various ideas and proposals suggested to addressing the problem.
The first is carbon market or carbon trading – it is a market-based system aimed at reducing greenhouse gases or carbon dioxide particularly emitted by burning fossil fuels, the main factor contributing to global warming.
The second is carbon taxation. A carbon tax could discourage the use of fossil fuels and encourage a shift to less-polluting fuels, thereby limiting the carbon dioxide (CO2) emissions that are by far the most prevalent greenhouse gas.
The last option to reduce carbon emission is regulating carbon dioxide through agreement.
Yitebtu added that setting limits on companies that emit carbon allowed the problem to be resolved by the market. In this regard, the EU and China have implemented this system extensively. However, following the departure of the United States from the Paris Agreement, its application is losing momentum except in few voluntary companies.
Ethiopia wants to sell each carbon emitted. However, it is not participating in the carbon market due to lack of technical knowledge to prepare the needed project design or proposal to sell carbon. And at the institutional level, the government is not providing the support it needs.
“Though the application of the carbon market system is in decline internationally, we should not seat ideal until the opportunity comes again. Instead, we must continue to build our capacity at the national level.”
As it has a greater advantage in fostering development, building a green economy and generating foreign currency, the government and the private sector should give special attention to investing in the carbon market. “Therefore, we should conduct extensive study on the matter,” he said.
As to him, by 2020 various events are expected to be held in relation to climate change. So, to get benefit from these opportunities, all concerned bodies need to work together with the Commission and make themselves ready to make the best out of them.
In Ethiopia, particularly at Humbo or Soddo community, the World Bank took a novel approach to apply carbon trading. As they manage to restore the forest and biodiversity in their locality, the Humbo community sold the resulting greenhouse gas emissions reduction carbon credits to the World Bank BioCarbon Fund.
In return, the community has been able to utilize the income to improve their livelihood strategies and expand development infrastructure, Yitebitu said. From 2010 to 2014, the Humbo forest management cooperatives (the community) earned 394,293 USD from the sale of carbon credits, he noted.
In addition, the projects has been bene fitting the community in terms of decreased health risks, improved nutrition and, garden production and livestock maintenance in the area. So, the Ethiopian government should give attention to this sector to save communities from the impacts of climate change and global warming.
Some sources indicated that if regional limit and trade schemes can be joined up globally, with a strong carbon price, it could be a relatively pain-free and speedy method to help the world decarbonizes.
Cap and trade schemes have been more significance, at regional, national and international levels. They work by setting an overall limit or cap on the number of emissions that are allowed from significant sources of carbon, including the power industry, automotive and air travel.
Governments then issue permits up to the agreed limit, and these are either given free or auctioned to companies in the sector. If a company curbs its own carbon significantly, it can trade the excess permits on the carbon market for cash. If it’s not able to limit its emissions, it may have to buy extra permits.
Cap and trade schemes have been very effective in tackling environmental problems in the past, with trading in sulphur dioxide permits helping to limit acid rain in the US. The big attraction for governments concerned with stemming CO2 is that carbon trading is much easier to implement than expensive direct regulations, and unpopular carbon taxes.
Creating a market in something with no intrinsic value such as carbon dioxide is very difficult. Promoting scarcity and limiting the right to emit is imperative.
“Currently, Ethiopia has the potential to prepare proposals for carbon trade. We have to be ready to participate in carbon trade. Once the carbon trade is reinforced, we will be able to significantly benefit from the sale of carbon credit,” Yitebitu stated.
The Ethiopian Herald October 3, 2019
BY ESSEYE MENGISTE
