Ethiopia Climate Resilient Green Economy Facility 

ObjectivesFund scope

Ethiopia has seen double-digit annual economic growth in the last decade, causing experts to surmise it will become one of the world’s fastest growing countries in the coming years. Despite the progress however, the country remains highly vulnerable to the fallout associated with climate change. These threats led to the creation of a national Climate Resilient Green Economy Facility (CRGE), which now positions Ethiopia at the forefront of the low carbon revolution outlined in various global climate agendas.  

Rich in woodlands and renewable resources (hydro, solar, wind and geothermal energy) Ethiopia has massive low carbon potential, but to make the most of it the government and stakeholders must ensure long-term planning is compatible with a low carbon future. Systems and structures must be amended to attract and retain low carbon investors.  

Delivering on targets outlined in the Climate Resilient Green Economy Strategy and Growth and Transformation Plan, the Green Economy Facility for Ethiopia contributes to the implementation of United Nations Development Assistance Framework (UNDAF) outcomes under resilience and green economy pillars. Integrated and multi-faceted, the Facility backs government efforts in mobilizing, accessing, and merging sources of finance in support of institution building and implementation of the CRGE strategy. 

Strategic framework and theory of change 

To build resilience the Government of Ethiopia is taking steps to ensure the national economy is sustainable through initiatives like national mitigation plans or the 60 green economy initiatives that were designed to curb Ethiopia’s 2030 greenhouse gas (GHG) emission levels, preventing them from exceeding the 150 megatonne CO2 ceiling.  

The Ethiopia CRGE Facility consists of a centrally integrated planning process called iPlan. Under this process sector investment plans are developed and implemented, embedding green economy components into the seven sectors that have the highest greenhouse gas abatement potential:  

• Power supply
• Buildings and green cities
• Forestry (REDD+)
• Agricultural/soil-based emissions
• Livestock
• Transport
• Industry

The CRGE Facility uses climate finance mechanisms to complement existing investments to further advance national climate-compatible development activities in the areas of food security, energy, infrastructure development and natural resources management. The Facility has two active windows: the strategic window is for exclusive support to implement activities that have been identified through the iPlan strategic process, while the responsive window provides demand driven support for the implementation of institution-building activities.  

GovernanceGovernance arrangements

Ministerial Steering Committee

Determines Facility priorities and sets the criteria and scope for improving investment plans. Additionally, the Committee provides policy guidance to ensure coherence and collaboration, approves the annual programme, and facilitates coordination between relevant stakeholders and environmental bodies. 

Technical Committee 

The CRGE Technical Committee assesses and approves investment plans submitted through the strategic and responsive windows. Investment plans are appraised against climate criteria (e.g. resilience, green growth) and development criteria (e.g. alignment with the GTP, poverty reduction).  

Management Committee 

Responsible for prioritizing investment plans approved by the Technical Committee, the Management Committee also allocates funds through the strategic and responsive windows; provides oversight of the Facility, in accordance with Ministerial Committee decisions; allocates funds; reviews the annual strategic plan and consolidated reports; oversees financial management, and effectively monitors and evaluates Facility activities. 

Facility Advisory Group 

This group consists of development partners and representatives from multilateral organizations, international NGOs, civil society, private sector, and academia. The Advisory Group reviews investment plans and makes suggestions to technical and management committees. Note: the Advisory Group is not part of the CRGE decision-making process.  

National Implementing Entities 

Implements—in collaboration with CSOs, private sector and academia—Facility-funded programmes.  

Administrative Agent 

Participating Organizations receive funds through the Administrative Agent, Multi-Partner Trust Fund (MPTF) Office. The Administrative Agent is responsible for the receipt, administration and management of contributions from donors, disbursement of funds to Participating Organizations, and consolidation and dissemination of progress reports to donors.  

Participating Organizations 

Programme implementation is the responsibility of Participating Organizations. Each organization is programmatically and financially responsible for resources received. 

Projects

Ethiopia Climate Resilient Green Economy Facility

Ethiopia Climate Resilient Green Economy Facility is currently supporting count_projects ongoing projectscount_globalInterregional and count_countries country-specific. This table shows the most recently approved ongoing projects.

All project financial information can be found in the Financials section, including delivery analysis by organization, theme and project; project financial status by country and by theme.

Ethiopia Climate Resilient Green Economy Facility

Results

At the forefront of the low carbon revolution, the Ethiopia Climate Resilient Green Economy Facility pursues economic development, net-zero emissions, and building resilience among local communities by unlocking the potential of Ethiopia’s national forestry and renewable resource sectors, producing inclusive, strategic, and lucrative Green Economy growth. 

ContactsPoints of contact