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Landscape of Climate Finance in Ethiopia

Being Africa’s sixth largest and fastest growing economy, Ethiopia has shown a strong commitment to being a middle-income country by 2025. Since the launch of the Climate Resilient and Green Economy (CRGE) strategy in 2011, it has established a rich policy landscape coupling economic growth with climate change action. Ethiopia’s ambitious climate targets are focused on ensuring low-carbon energy development, conservation of its vast forest reserves, and practicing climate smart agriculture, while mainstreaming adaptation and resilience as a key priority.

This report provides a deep dive analysis of the landscape of climate finance in Ethiopia in 2019/2020. Following an overview of climate relevant strategies and plans in the country to date along with financing needs (Section 1), it provides an in-depth analysis of climate finance flows in Ethiopia mapped across its value chain i.e. from sources, financial instruments, and their end uses and sectors (Section 2). The analysis is based on the methodology and database developed by CPI for the Landscape of Climate Finance in Africa (CPI, 2022). While data gaps, especially on the domestic budget expenditure and private investments limits a comprehensive assessment, the aim of the study is to inform and facilitate discussions among policymakers and public and private financiers, identifying gaps and opportunities for scaling climate finance in Ethiopia.

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