Project

Ethiopia Country Program Proposal 2017-2018

At a Glance

Start Date Q1 2017
Funding Source Core
Approved Budget USD 6 199 000
Status Active
Thematic Area
  • Sustainable Landscapes
  • Cross Cutting

Project Rationale

Ethiopia is developing rapidly. The growth of the economy over the last five years puts it within the top five fastest growing economies in the world, and is double the average for Sub-Saharan Africa. Ethiopia’s public investment-led development strategy focuses on increased agricultural productivity, industrial output, export revenue, and public infrastructure. The strategy has generated tangible results in terms of economic growth and improved social conditions including significant reductions in rural and urban poverty. Ethiopia’s goal to become a middle-income country by 2025 is thus attainable.

To reach middle-income status and sustain the development gains of recent years, Ethiopia will need to continue to implement its transformational growth strategies and address significant climate change threats. The country‘s ecological and agricultural systems are fragile and vulnerable to rising temperatures and changing weather patterns that are likely to impact critical seasonal rainfall levels. This is compounded by population pressure and stretched natural resources, especially the management and utilization of land. Furthermore, Ethiopia ranks 173 out of 187 countries on the UNDP’s 2013 Human Development Index (HDI), with food insecurity persistent for roughly two million Ethiopians. In total, the negative impact of climate change on GDP could be 10% or more by 2050.

The Government of Ethiopia (GoE) clearly recognizes the negative consequences of climate in-action to the country’s ongoing and future development, and has therefore prioritized climate resilience in its transition towards a green, sustainable growth model. Indeed, building a CRGE is a crosscutting pillar of the GoE’s development agenda for poverty eradication through broad-based, accelerated, and sustained economic growth.

Building on 2015-16 Work

The project builds on GGGI successes in contributing to Ethiopia’s CRGE Vision, through the development of the Green Economy Strategy, the Climate Resilience Strategies for Agriculture and Forests, and Water, Irrigation and Energy, and the establishment of the CRGE Facility and the Environment and Climate Research Centre (ECRC). GGGI also developed, in partnership with stakeholders, a CPF to support and align CRGE objectives with the second phase of the Ethiopia’s Growth and Transformation Plan (GTP-II 2016-2020). GGGI’s work in Ethiopia also contributed to the accreditation of the Ministry of Finance and Economic Cooperation to the Green Climate Fund, which will facilitate financing of bankable green growth projects.

Effectively implementing the CRGE strategy and fully mainstreaming it into the GTP II will require concerted strategic and technical assistance from GGGI across national and sub-national institutions, with a focus on strengthening planning, capacity, and delivery of the CRGE.

Delivery Strategy

PROJECT OUTPUTS FOR 2017-18:

  • Develop 2 climate resilience strategies for the industry and urban sectors
  • Undertake macro-economic analysis of the Climate Resilient Green Economy strategy
  • Develop a sector-level implementation roadmap for the Climate Resilient Green Economy strategy
  • Develop a climate diplomacy strategy
  • Develop a strategy and guidelines for REDD+ implementation
  • Establish a mechanism to coordinate REDD+ stakeholders and deliver 2 knowledge sharing events
  • Deliver technical assistance to strengthen forest administration, including regulatory recommendations, guidelines, training, and support with private sector engagement
  • Develop guidelines for the integration of climate resilience approaches into the 3 flagship agricultural programs
  • Support development of the Livestock Investment Plan
  • Develop a consolidated roadmap for a sustainable power sector
  • Undertake an assessment of the impacts of natural disasters to support disaster prevention and preparedness efforts
  • Identify and develop CRGE related bankable projects
  • Deliver trainings in line with the National Capacity Development Plan at national and sub-national levels
  • Support effective tracking and coordination of CRGE activities and stakeholders
  • Develop a resource mobilization and management strategy for the CRGE Facility
  • Develop a private sector engagement strategy for the CRGE Facility
  • Develop a research agenda related to CRGE implementation
  • Identify partners/agencies/institutions suited to implement the CRGE research agenda

PROJECT OUTCOMES FOR 2017-18:

  • Government adopts an implementation roadmap for CRGE components of the GTP II
  • Tools and frameworks for a programmatic approach to CRGE planning and implementation at sectoral level are being used by ministries
  • Financing is approved for CRGE Facility proposals
  • Training participants gain improved knowledge and skills relating to CRGE implementation
  • Capacity of CRGE Facility to mobilize resources and engage with the private sector is enhanced
  • Policy-relevant knowledge products on climate resilient green growth are being used by ministries and key stakeholders

Planned Results

The overall outcome of the project is to support the GoE’s deliverables relating to development goals by integrating CRGE plans and projects into Ethiopia’s Growth and Transformation Plan. This will be done by delivering the following outputs:

Develop a sector-level implementation roadmap for the CRGE strategy. Based on the identified need to effectively integrate sectoral CRGE strategies into GTP II, GGGI will develop an implementation roadmap to facilitate coordination. The roadmap will be developed in partnership with MEFCC, with GGGI taking stock of strategies, policies and implementation progress, economic analysis of pathways and costs, and defining roles of institutions. This exercise will map the steps necessary to implement the CRGE, by linking it to the GTP and maintaining its strategic relevance.

Tools and frameworks developed that support a programmatic approach to ministerial CRGE planning and implementation at sectoral levels. Successfully integrating the CRGE into the GTP II will require tools and frameworks that support ministry-level planning and sectoral implementation. Therefore, the roadmap will provide for the design of sectorspecific tools and systems that address identified gaps in green growth planning and implementation across ministries. These tools include GHG emissions inventories, environmental risk assessment tools, and M&E frameworks.

Investment proposals approved by the CRGE Facility for financing. Based on identified government priorities, GGGI will develop investment proposals for CRGE Facility approval. Using the roadmap as a basis, GGGI will conduct an analysis of the priority investment options across sectors and investigate the potential opportunities for CRGE Facility financing as well as private sector investment. Based on the results, GGGI will develop proposals with identified government partners by validating scoped investment opportunities, assigning indicative budgets, and developing timelines and project plans.

Capacity built and knowledge enhanced among government officials in support of CRGE implementation. Recognizing the scale of CRGE integration, the institutional capacities of ministries and agencies participating in delivery will need to be enhanced. GGGI will deliver a National Capacity Development Program to strengthen the capacity and performance of federal and sub-national governmental institutions to achieve systemic transformations towards CRGE. Delivery of GGGI trainings through to 2020 will include independent evaluation support to track progress, knowledge, and capacities over time.

Management strategy and implement private sector engagement strategy to facilitate CRGE Facility resource mobilization developed. GGGI will develop a strategy for the CRGE Facility to manage and mobilize resources. An integrated resource management framework will be developed to support the facility in mobilizing additional funds and deploying those funds effectively. GGGI will also work with the CRGE to implement a private sector engagement strategy, which includes institutional options for engaging with the private sector, and details public financing instruments that can reduce investment risks for the private sector such as guarantees or grants, through the Development Bank of Ethiopia.

Policy-relevant knowledge products on CRGE for use by ministries developed. Recognizing that decision-making in green growth planning and implementation requires sound research and policy analysis and a rich base of evidence, GGGI will develop knowledge products relevant to CRGE objectives. GGGI will critically assess the evidence-base around the CRGE to identify gaps and develop a research agenda related to CRGE implementation. GGGI will also identify and work with partners, agencies, and institutions that are suited to implement the relevant research agenda.

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Project
Implementation of the NDC
Start Date Q1 2017
Funding Source Core
Approved Budget USD 1 255 000
Status Active
Thematic Area
  • Cross Cutting
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