Ethiopia-Green Growth Planning
"Overall Program Goals
- Develop the Green Economy (GE) Strategy
- Develop the Climate Resilient (CR) Strategy
- Design and implementation of the Sector Reduction Mechanism (SRM)
- Build the capacity of the Ethiopian Government to design and implement a comprehensive measuring, reporting and verification system for monitoring climate results.
- Help put in place an effective system for leveraging and spending climate finance.
Following the UNFCCC summit in Copenhagen in 2009, Ethiopia took substantive steps to tackle the challenge and seize the opportunity that climate change presents. To do this, the country established the Climate Resilient Green Economy (CRGE) Initiative. Underpinning the CRGE is the vision that Ethiopia will achieve a middle-income economy by 2025, one that is resilient to climatic shocks and produces no more emissions than Ethiopia’s economy today. The CRGE Initiative is due to be completed in 2025. The vision was launched in late 2012. GGGI is supporting the Government of Ethiopia in both the Green Economy and Climate Resilient components of the CRGE as well as designing and scoping of a Sector Reduction Mechanism, which will serve as the principal vehicle through which the CRGE, and therefore emissions reduction, will be put into action.
In 2012 when the Ethiopian Government launched the CRGE, it also unveiled the first building block in the initiative, the Green Economy Strategy. GGGI was closely involved with drafting of the GE Strategy, which charts the scale and roadmap to boosting growth through low carbon solutions. Also in 2012, GGGI assisted in developing the Climate Resilient Strategy, which will be formally launched in mid 2013. The next major step in the CRGE Initiative is the Sector Reduction Mechanism (SRM) Process. The SRM will translate the high-level goals of the Strategies into action, through a comprehensive process of investment planning. Ultimately, the SRM will be integrated into the broader national economic growth plan –the Growth & Transformation Plan (GTP). The GTP is due to be completed in 2015. The CRGE Initiative will gradually be fully integrated into the GTP to create a green national economic growth plan.
By adopting green growth and climate resilient development, Ethiopia expects the following impacts. First, the country will be less vulnerable to climate shocks. This in turn will protect millions from hunger in the face of floods and droughts. Second, the country will accelerate growth, creating jobs and opportunities. This in turn will help lift millions out of poverty – through increased incomes, improved energy access and more productive agriculture. Third, through the CRGE Initiative the country expects to be able to attract additional investment to Ethiopia. The country aims to leverage up to $500 million of additional investment a year by 2025.
The CRGE Facility
At two workshops in October 2013 in Addis Ababa, Ethiopia unveiled the Sectoral Reduction Mechanism (SRM) Framework, which outlines the mechanism for implementation of the CRGE and the Operational Manual for the CRGE Facility that sets out the detailed mechanics of a new institutions that will attract, pool and deploy funding to meet the CRGE vision. The CRGE Facility allows Ethiopia to aggregate resources from a range of sources and deploys it in strategically and effectively. Funds are pooled within the Facility and programmed out to strategic priorities. GGGI has been providing support to the Ministry of Finance and Economic Development in the design of the Facilities operational manual and the development of the CRGE Facility systems and processes."
"GGGI supports emerging and developing countries that seek to develop rigorous green growth economic development strategies. It does so by placing the best available analytical tools at their disposal, building their institutional capacity to apply these tools for their own purposes, and engaging them in an international process of mutual learning with other countries on a similar journey. It also supports the implementation of green growth plans by advising on their institutionalization in governmental structures and policy as well as by engaging private investors and public donors in their successful execution."
The work will include macro- and micro-economic analyses of low-carbon development options, as well as policy and carbon finance recommendations. The goal is to develop a comprehensive green growth strategy focused on rural electrification, management of forests, water scarcity and agricultural productivity – the key elements of which will be included in the government’s new Plan for Accelerated and Sustained Development to End Poverty (PASDEP). GGGI will also identify the long term institutional requirements to implement the plan and to embed green growth planning in the country.