Ethiopia inks landmark $40 mn forest preservation deal with World Bank

The ERPA marks the first of its kind for ISFL, which will reward efforts to reduce around 4 million metric tons of CO2e (carbon dioxide equivalent) emissions through 2030 under Ethiopia’s ambitious Oromia Forested Landscape Program (OFLP), the World Bank said in a press release.

The Oromia Forested Landscape Program (OFLP) seeks to reduce greenhouse gas (GHG) emissions by improving forest and livestock management throughout the Oromia region.

ISFL grant financing has supported the OFLP since its start of implementation in 2017. It has enabled on-the-ground investments that have resulted in over 350 community cooperatives being engaged in afforestation and reforestation activities and participatory forest management, with plans and assessments covering more than 195,000 hectares of natural forests. Over 46 million tree seedlings have been produced and more than 9000 hectares of land have already been reforested. The program has also worked with the private sector and governmental entities to promote the adoption of new business models that ensure environmental and economic sustainability and development of forest-smart policies that support local initiatives to thrive and scale up.

With the activities underway, the ERPA will bring significant additional funding to the program in the form of results-based payments for the verified emission reductions. A comprehensive benefit sharing plan is prepared to ensure stakeholders are fairly recognised and rewarded for their effort in reducing emissions.

“Signing this ERPA is a reason to celebrate,” said Ato Kebede Yimam, director general for Ethiopian Forest Development. “It is the culmination of our careful planning, increased partnerships, and political commitment to managing our forests and agriculture sustainably as part of national efforts to combat climate change, build resilience, and ensure inclusive green growth.”

“We are proud to sign our first ERPA with Ethiopia and reward the hard work of changing how land is managed to avoid deforestation,” said Roy Parizat, ISFL fund manager. “It is particularly gratifying to see local communities empowered to protect, manage, and decide on how to use the benefits accrued from protecting the forest and improving the environmental sustainability of other critical land-use sectors, most notably agriculture.”

Fibre2Fashion News Desk (DP)