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From carbon market ambition to smallholder benefits in Ethiopia

On May 4, 2026, the Alliance of Bioversity International and CIAT convened stakeholders in Addis Ababa, Ethiopia, to explore how the country’s emerging carbon market framework can translate climate finance into tangible benefits for smallholder farmers.

from-carbon-market-ambition-to-smallholder-benefits-in-ethiopia
  • agroforestry
  • carbon markets
  • Climate finance

From carbon market ambition to smallholder benefits in Ethiopia

On May 4, 2026, the Alliance of Bioversity International and CIAT convened stakeholders in Addis Ababa, Ethiopia, to explore how the country’s emerging carbon market framework can translate climate finance into tangible benefits for smallholder farmers.

Convening the discussion 

As part of its research support to CompensACTION, an international multi-partner initiative launched by the German Federal Ministry for Economic Cooperation and Development (BMZ) to advance innovative financing mechanisms that reward sustainable agricultural practices and land management contributing to ecosystem services, the Alliance of Bioversity International and CIAT convened a workshop in Addis Ababa on 4 May 2026. The workshop supported CompensACTION’s implementation in Ethiopia through the International Fund for Agricultural Development (IFAD) and explored how Ethiopia’s emerging carbon market framework could translate into opportunities for smallholder agriculture. It built on a recent CGIAR report examining how voluntary carbon markets and Article 6 can help scale agricultural payments for ecosystem services.

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