The Government of Ethiopia considers climate change to be one of its priorities in responding to the country’s long-term development needs. The nation’s widely acclaimed Climate Resilient Green Economy (CRGE) strategy has called for annual spending of $7.5bn. With federal budgetary resources for climate change relevant actions estimated to be in the order of $440m per year, and international sources adding an uncertain amount that may be in the tens of millions (USD) per year, there appears to be a major financing gap.
Therefore, if the CRGE strategy is to be delivered, and the lives of the country’s most vulnerable people made more resilient, much more effort needs to be exerted to mobilize additional resources both domestically and externally. In particular, international commitments on climate finance need to be realized. This is now a matter of urgency for Ethiopia, as it is for many other African States.
Drawing on research by the Climate Science Centre of Addis University and the Overseas Development Institute, this policy brief, supported by the ACCRA programme, sets out recommendations to bridge the funding gap for climate financing in Ethiopia.
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