The Ethiopia GCF Readiness Project strengthened national capacity to access and manage climate finance through the Green Climate Fund. Implemented from 2019 to 2021, the project supported the Ministry of Finance, Ethiopia’s accredited National Implementing Entity, to enhance its institutional, technical, and operational capabilities. GGGI, acting as Delivery Partner, provided support in project development, pipeline strengthening, and systems for environmental and social safeguards, monitoring, and evaluation. The project also improved coordination among national stakeholders and promoted private sector engagement. As a result, Ethiopia advanced its readiness to develop and deliver climate-resilient investments aligned with its Climate Resilient Green Economy strategy and national development priorities. 

The project aimed to strengthen Ethiopia’s capacity to effectively access, manage, and deploy climate finance through the Green Climate Fund. It focused on enhancing the Ministry of Finance’s ability to develop, coordinate, and deliver high-quality climate projects and programs. The initiative supported improvements in project preparation, fiduciary systems, environmental and social safeguards, and monitoring and evaluation processes. It also aimed to strengthen country programming and stakeholder engagement, including the private sector. By doing so, the project contributed to increasing Ethiopia’s direct access to climate finance and advancing its transition toward a climate-resilient and low-carbon economy. 

Ethiopia’s Ministry of Finance was accredited as a Direct Access Entity to the Green Climate Fund in April 2016, enabling it to mobilize and deploy climate finance for national development priorities. The Ministry established the Climate Resilient Green Economy (CRGE) Facility to manage climate-related investments and programs. 

However, to expand its role and access larger-scale funding, the Ministry needed to strengthen its institutional and operational capacities. This included enhancing project development and management systems, fiduciary and procurement functions, and environmental and social safeguards. The Government of Ethiopia also aimed to improve coordination among stakeholders and increase engagement with private sector actors. 

The readiness project responded to these needs by supporting capacity building, pipeline development, and institutional strengthening, enabling Ethiopia to fully leverage GCF resources and accelerate implementation of its climate and development goals. 

The project strengthened the Ministry of Finance’s capacity as a National Implementing Entity, enhancing its ability to develop and manage climate finance projects. Key achievements included improved systems for project appraisal, monitoring and evaluation, and environmental and social safeguards, including gender considerations. 

It also supported the development of a stronger project pipeline aligned with national priorities and GCF requirements, while improving coordination among government institutions and stakeholders. Enhanced engagement with private sector and non-state actors further expanded opportunities for climate investment. 

Overall, the project enabled Ethiopia to better access and utilize GCF resources, positioning the country to scale up climate-resilient and low-carbon development initiatives.