The Socio-Economic Impacts of Carbon Trading in Humbo Woreda , SNNPR,Ethiopia

Abstract

Carbon-trading deals involving forestry projects in developing countries could reduce poverty at the same time as they offer an inexpensive way to off-set carbon dioxide emissions. Under the clean development mechanism (CDM) of the Kyoto Protocol, industrialized nations are allowed to meet part of their carbon emission reduction commitments by carrying out reforestation and clean energy projects in developing countries. The use of forests to reduce emissions is not only financially viable, but could also bring significant benefits to the local communities involved. For Ethiopia, carbon trading also represents an opportunity to fund sustainable through financial inflows. However, with a low share of global carbon trade, there are strong concerns that Ethiopia is losingout this valuable opportunity. Markets for environmental services have been growing in recent years wherein more and more people are willing to pay for carbon project benefits.. The study focused on the socio-economic impacts of carbon trading in Humbo district, SNNPR, Ethiopia.  The analysis subsequently examined the nature and extent of community participation in the project implementation, and the carbon payment that are envisaged from the project. Quantitative and qualitative methods of research have been applied throughout the investigation. Accordingly, observation, in depth interviews, focus group discussions and questionnaires were used to gather information.