ecopulse Ethiopia is exploring a carbon pricing mechanism on international flights arriving in the country. This initiative is part of the nation’s broader carbon market strategy 2025–2035, aiming to raise revenue for climate and sustainable development programs while promoting cleaner aviation practices.
Ethiopia’s Carbon Market Strategy 2025–2035
The Ministry of Planning and Development has proposed a carbon tariff for airlines operating inbound flights. This approach is intended to generate revenue without placing additional costs on local consumers or industries. The plan is part of Ethiopia’s efforts to build a credible national carbon market aligned with international standards.
How Carbon Pricing on Flights Works
The policy is designed to work alongside CORSIA, the International Civil Aviation Organization’s carbon offset framework for global aviation. By following this system, Ethiopia ensures its carbon pricing is compatible with international aviation regulations and avoids conflicts with existing carbon accounting rules.
Benefits of Carbon Pricing
Revenue Generation: Creates a new funding source for climate programs and sustainable development projects.
Climate Action: Puts a price on aviation emissions, incentivizing airlines to adopt cleaner practices.
Strengthening the Carbon Market: Enhances Ethiopia’s role in both domestic and international carbon trading, providing credibility for future carbon credit initiatives.
Challenges and Considerations
While promising, the policy faces several challenges:
Regulatory Complexity: Requires clear rules, monitoring systems, and administrative enforcement.
Fairness and Equity: Determining whether airlines or passengers bear the cost.
Global Coordination: Must align with international frameworks like CORSIA to prevent double counting or overlapping regulations.
Market Readiness: Ethiopia needs robust mechanisms for generating and verifying high-quality carbon credits.
Ethiopia’s Role in Global Carbon Markets
Ethiopia is positioning itself as a proactive player in climate finance. By implementing a carbon tariff on inbound flights, the country strengthens its domestic carbon market while mobilizing resources for projects such as renewable energy, forest restoration, and sustainable infrastructure. This policy also signals Ethiopia’s commitment to global efforts in reducing aviation emissions.
