The Government of the Federal Democratic Republic of Ethiopia launched its Climate Resilient Green Economy (CRGE) strategy in December 2011 in Durban, South Africa during the 17th session of the Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC). The strategy aims to build carbon neutral and climate resilient middle-income economy by 2025. It also aims to reduce 64% of the national greenhouse gas emission by 2030 compared with the ‘business as usual’. Following the strategy, sector specific climate-resilience strategies were developed for agriculture & forestry, water & energy and transport sectors. Based on the existing climate resilience and green-growth strategies, Ethiopia has also submitted its Nationally Determined Contribution (NDC) to UNFCCC.
The CRGE strategy elaborates a number of low carbon emitting actions across key economic sectors to achieve its vision. The strategy also tasked the Ministry of Finance and Economic Cooperation (MoFEC) to establish a national climate fund to mobilize climate finance from various sources to realize this vision. Accordingly, MoFEC in collaboration with the Ministry of Environment, Forest and Climate Change (MEFCC) established (late 2012) and operationalized (early 2013) the CRGE Facility to attract climate finance to support the institutional building and implementation of Ethiopia’s CRGE Strategy. The facility is managed under the UN Agencies, CRGE Facility and Regional Economic Cooperation Directorate in MoFEC.
As Ethiopia’s national climate fund, the CRGE Facility will be recognized nationally and internationally as a premiere climate finance and CRGE coordination and delivery entity.
Through the development of partnerships with development partners and private sector, and through enhancing domestic investments from government, the CRGE Facility’s mission is to:
- Mobilize funding in a flexible, coordinated and predictable manner that is invested in climate relevant projects and programs compliant with national and international fiduciary standards;
- Support efficient and effective actions in GHG emissions reduction and increasing resilience as set out in the national Climate Resilience Green Economy (CRGE) strategy, which is aligned with sustainable development goals; and
- Provide a unified engagement point where government, development partners, civil society and other stakeholders can engage and make decisions about climate finance related issues.