Finding a Balance Between Development and Sustainability

A thematic workshop was called by EWiEn on November 18,2023 at the Bluespace to explore climate change, carbon trading, and global environmental responsibility. Vice President EWiEn and panel discussion moderator of the day Linda Lapiso opened the session. Setting the scene, she introduced EWiEn’s goal and vision and outlined the program, which included presentations, panel discussions, and a question and answer session.

Why were we all here? Well, to demystify carbon trade, get cozy with the nitty-gritty of climate change, and maybe light a fire (figuratively, of course) under our attendees to get involved in this vital sector.

The first session by Yemisirach Mekonnen discussed the intricate world of greenhouse gasses (GHGs) and their significant role in the global climate crisis. She established a strong case for how humankind’s accidental contribution to climate change stems from historical neglect brought on by the desire for industrialization. The increase in Earth’s surface temperatures caused by human activities is known as the greenhouse effect.

Yemisirach Mekonnen traced the beginnings of climate change back to the industrial revolution of the 1800s, emphasizing the start of carbon dioxide emissions from the burning of fossil fuels, which is a key contributor to greenhouse gas emissions.

In terms of Ethiopia’s position, the country is suffering even if it does not rank highly in terms of greenhouse gas emissions. A movement has surfaced that promotes the use of E-cooking as a workable substitute for traditional wood-fired cooking methods, positioning itself as a quick and practical solution.

The presentation continued with a powerful video that showed natural disasters in Italy, Hong Kong, Austria, and Greece as well as the tangible effects of climate change served as a sobering reminder of the tragedies caused by human activity.

Yemisirach’s presentation showed  a road map for reducing climate change and highlighted key tactics, including: Making the switch to renewable energy, improving Energy and Water Efficiency, accepting environmentally friendly modes of transportation, building robust infrastructure, transforming farming methods, encouraging recycling as a culture, taking advantage of new technologies’ potential.

Acknowledging that it would be impossible to undo two centuries of industrial revolution progress, attention shifted to compensating future carbon emissions and the rise of carbon markets as a middle-ground solution.

With that, the workshop moved on to the next item on the agenda, a panel discussion led by Linda, with panelists from the government, Tirhas Mebrahtu, the resource mobilization and evaluation at the Ethiopian Environment Protection Authority, and from the private sector, Sultan A. George, Climate Change and Mitigation Specialist from Vita, an Irish-based international development organization.

The discussion was ignited by a pressing question: Can carbon emissions be part of the solution? Sultan led the charge, drawing a parallel between buyer, seller, and product market dynamics—except in this case, the product is invisible: carbon. He emphasized the interconnectedness of our world, emphasizing that solving this common problem will determine our collective fate. Companies, he said, try to offset their carbon footprint by investing in green programs, resulting in a moral and financial balancing act.

The journey from the Rio Summit in 1992 to the Kyoto Protocol in 1997 established the foundation for carbon trading by establishing emission reduction targets. The Paris Agreement, on the other hand, became a beacon of change, introducing mechanisms such as emission trading systems and clean development mechanisms. Tirhas, a powerful panelist, elaborated on this evolutionary direction, explaining why the shift from Kyoto to Paris was necessary. While the former fell short of expectations, the latter provided a more inclusive approach, particularly for countries in the global south. With the introduction of Nationally Determined Contributions (NDCs), each country was required to chart its own path for reducing emissions.

Ethiopia’s significance in this story became clear. Tirhas outlined the country’s ambitious plans, highlighting the need for a staggering $313 billion investment. However, internal resources can only cover a fraction of the costs, emphasizing the need for international assistance, including carbon trading.

The discussion did not just revolve around theories; it also looks into practicalities. Sultan demystified carbon market price fluctuations, emphasizing the political undertones and the influence of middlemen. The expiration of the Clean Development Mechanism (CDM) in 2020 resulted in market price increases in volunteer markets while the CDM was reactivated.

Ethiopia’s progress in this area became clearer. Tirhas described ongoing CDM and volunteer carbon market projects, emphasizing a strong emphasis on energy-related initiatives, particularly cook stove projects.

The path to project approval was under review as well. Sultan described the complex process in detail, emphasizing the importance of robust systems, experience-based learning, and adherence to global standards. Tirhas agreed, emphasizing the time-consuming registration process and the value of experience in navigating this complex landscape.

Critics frequently refer to carbon trading as ‘greenwashing,’ calling into question its tangibility and impact on ground realities. These concerns were addressed head on by Sultan and Tirhas. They emphasized the importance of host country commitments, stringent monitoring systems, and branding alignment with ethical practices in dispelling such myths.

They emphasized, in keeping with the spirit of the Paris Agreement, the need for strong accounting, operational procedures, and precise measurements to confirm the legality of the carbon trade.

Following an informative panel discussion, the floor was opened for a lively question and answer session. Participants raised pertinent questions about document transparency, the urgency of making processes public, strategies for resolving financial challenges, the government’s role in supporting private investors, and Ethiopia’s envisioned COP28 strategies.

The panelists addressed these concerns eloquently, providing valuable insights and potential solutions to the diverse range of questions posed by the engaged audience.

An engaging networking session following the panel discussion provided attendees with an invaluable opportunity to connect and collaborate with stakeholders, fostering further discussions and partnerships.

The discourse on carbon trade emerged as an important component in our fight against climate change in an illuminating workshop at EWiEn. The session untangled the complexities of carbon trade, revealing its critical role in reducing emissions through in-depth analyses and expert insights. The roadmap was clear: carbon trade stands as a source of hope, from its historical evolution at global summits like the Rio Summit and the Kyoto Protocol to the game-changing mechanisms introduced by the Paris Agreement. The discussions focused on the buyer-seller dynamics of carbon, an invisible but powerful commodity. It emphasized the interdependence of nations and industries in an effort to reduce carbon footprints through green programs and global agreements. As the workshop came to a close, the message was clear: carbon trading isn’t just an option; it’s a critical component of our quest for a sustainable, climate-resilient future.