Press Release

Green Climate Fund approves USD 50 million project proposal in Ethiopia

ADDIS ABABA – October 02, 2017 – The Green Climate Fund (GCF) today approved a USD 50 million project proposal to enhance critical irrigation systems in Ethiopian regions regularly stricken by drought.  Approved during the 18th Board Meeting of the GCF in Cairo, Egypt, the project combines USD 45 million of GCF finance and USD 5 million from the Federal Democratic Republic of Ethiopia (FDRE).

Ethiopia is a country among the most vulnerable to the adverse effects of climate change.

Ethiopia’s Ministry of Finance and Economic Cooperation (MOFEC), with close support from the Ministry of Environment, Forest and Climate (MEFCC), developed the project proposal which aims to drill boreholes and install small scale irrigation schemes across nine regions identified by the government as drought hotspots.

MOFEC is Ethiopia’s Accredited Entity to the GCF, and has established the Climate Resilient Green Economy (CRGE) Facility to change channel climate finance to projects on the ground.  The USD 45 million approved by the GCF will be distributed through the CRGE Facility, to finance project work that will enhance access to water and rehabilitate approximately 7900 hectares of degraded land. The project will benefit 330,000 people directly and 990,000 people indirectly.

Mr Kare Chawicha, State Minister of Environment and Climate Change, MEFCC, stated “our contribution to the problem of climate change is negligible. Yet, in 2011, we have taken exemplary decision to build a climate-resilient green middle-income economy by 2025. Such a target requires more than 200 billion USD over a period of 15 years.  The country uses domestic resources to cover much of this financing need. However, it also expected to access climate finance and carbon market”.

Mr. Admasu Nebebe, State Minister of Economic Cooperation, remarked that “this is a huge boost to our efforts. Much remains to be done. Line ministries and regions should work closely with MOFEC in developing bankable projects and mobilizing resources from climate funds”. Mr. Nebebe thanked all individuals and organizations that supported the development of this project including the Global Green Growth Institute (GGGI), CDKN, UNDP and DFID.

GGGI played a key role in in establishing the CRGE Facility by developing its Operational Manual, Monitoring & Evaluation Systems, and Fast-Track Investment guidelines and priorities that have contributed to the mobilization of over USD 130 million, in addition to today’s approval of USD 45 million.

Mr. Robert Mukiza, Deputy Director & Ethiopia Country Representative for the Global Green Growth Institute (GGGI), applauding the GCF’s approval of the project, remarked that “this is a major milestone in our efforts to support the Federal Democratic Republic of Ethiopia to achieve the bold ambitions set out in the Climate Resilient Green Economy strategy and the Second Growth and Transformation plan. GGGI will deepen its support in developing bankable projects to achieve the green transformation trajectory that Ethiopia is committed to. We thank the FDRE for the steadfast support provided to GGGI both in-country and globally”.

At the 18th Board Meeting of the Green Climate Fund, Ethiopia is represented by senior experts from MOFEC and the Office of the Prime Minister.

GGGI has been supporting Ethiopia’s green growth efforts since 2010, helping to develop the CRGE strategy and integrate it into the national Growth and Transformation Plan, which is designed to help Ethiopia achieve middle –income country status by 2025.

On October 17-20, GGGI and the MEFCC will co-host Global Green Growth Week 2017: Unlocking Africa’s Green Growth Potential. The 4-day conference will bring together public and private-sector stakeholders to drive forward innovative and inclusive solutions that tackle sustainability challenges in Africa and globally.

About GGGI

Based in Seoul, GGGI is a treaty-based international, inter-governmental organization founded to support and promote green growth. The organization partners with countries to help them build economies that grow strongly, are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. To learn more about GGGI, see https://www.gggi.org and visit us on Facebook and Twitter.