New Agro-Forestry Law Shifts Carbon Credit Titles to Ethiopian Landowners

Ethiopia’s new Forest Carbon Trading Amendment Directive No. 1141/2026 fundamentally reshapes forest carbon ownership by granting private and community forest owners full legal title to carbon credits generated on their land. The reform allows landowners to opt out of government-led jurisdictional programs and independently develop carbon projects for international markets. While increasing market autonomy, the directive also strengthens compliance requirements, including mandatory registration, benefit-sharing plans, MRV obligations, and public disclosure of project information. The amendment significantly limits the role of the Ethiopian Forestry Development agency to government-managed programs while promoting transparency and private sector participation. The reform is expected to improve access to climate finance and stimulate forest carbon project development across Ethiopia.
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