PROJECT: Enhancing Ethiopia’s access to climate finance
Project Reference: TAAF-0051c
The Government of Ethiopia recognises that carbon intensification and environmental degradation are not sustainable. The country’s climate change policy is set out in its ambitious Climate Resilient Green Economy Strategy with targets to attain middle-income economic status and zero carbon growth by 2025. In order to achieve its goals of low carbon economic growth and poverty reduction that supports resilience to climate change, Ethiopia is seeking to access international sources of climate finance.
This project was designed to enhance Ethiopia’s prospects to access sources of climate finance, in particular from the Green Climate Fund (GCF). The GCF aims to raise $100 billion per year by 2020 and has already been capitalised to over $ 10 billion. Countries that have been or are in the process of accreditation by the Adaptation Fund, can use this to fast track accreditation by the GCF. Ethiopia aspired to be one of the first African countries to have a national implementing entity accredited by the GCF and ready to access funding.
This has been achieved through three sub-components:
- Supporting the GCF accreditation process for the Ministry of Finance and Economic Development and the Development Bank of Ethiopia for accessing future climate funding;
- Supporting the Designated National Authority (the Ministry of Environment and Forests) as it prepares for GCF processes and coordination with sector Ministries;
- Building an investment strategy and project pipeline for the water sector to ensure high quality projects are submitted to the GCF for funding. These will also be well linked to the development needs of the country and connect with GCF priorities.
Since the completion of this project, the Government of Ethiopia has been placed to apply for and access funding from the GCF and mobilise further funds to implement their Climate Resilient Green Economy Strategy.