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 (MoF) to establish a national climate fund to mobilize climate finance from various sources to realize this vision. Accordingly, MoF in collaboration with Environment, Forest and Climate Change (EFCCC) 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 MoF.
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.
Organizational and Governance Structures
The CRGE Facility is governed by a Management Committee, which is co-chaired by MoF and MEFCC state ministers. All sector ministries involved in the CRGE strategy are represented both at state minister level and by senior level technical expert from their CRGE unit. An Advisory Board, which is comprised of representatives from the development partners, private sector, Multi-lateral development partners, CSOs, and academia functions to enable stakeholders to share and review information relevant to the performance of the CRGE facility and to influence, as appropriate, the resources available to the facility and the ways in which these are utilized.
A secretariat comprised of finance and technical team performs the day-to-day work, enabling the Management Committee to perform their duties in an efficient and effective manner. The secretariat reviews and appraises projects and programs and prepares funding decision note for the management committee.
Basic structure of the CRGE facility
The scope of work of the Facility include: resource mobilization and allocation; financial management; result based payment and emission trading; monitoring and evaluation; MRV of climate change projects and programs; ensuring compliance to environmental and social safeguard standards; technical assistance and capacity building; project and program design, preparation and appraisal; generation, management and dissemination of knowledge and data; private sector engagement; sub-national engagement; coordinating international development partners on climate finance support; and establishing and managing climate finance tracking system.
Since its operationalization in early 2013, the CRGE Facility has accomplished the following main activities (documents can be downloaded from programs/projects and/or resources pages):
Mobilized 1.5 Million USD from the World Bank from the Pilot Program for Climate Resilience (PPCR) to lead on developing a multi-sector investment plan (MSIP) to scale up achievement of goals related to resilient low carbon green growth;
Developed Climate Finance Tracking and Projection Methodology;
Conducted a national CRGE capacity assessment and prepared a CRGE Capacity Development Framework Road Map to strengthen government capacities to operationalize the CRGE strategy, plan, mobilize resource and deliver green, climate resilient development results;
Implemented the GCF Readiness Project with GGGI as a delivery partner to building the capacity of the Ministry of Finance in project/program development and strengthening Ethiopia’s engagement with the GCF
The CRGE Facility has established partnership with various bilateral and multilateral development partners as well as specialized technical support institutions. These partnerships have significantly supported the facility in fulfilling its responsibilities. The facility aims to strengthen its existing partnership while at the same time establish new ones.
Adaptation Fund (AF): Following its accreditation by the fund in 2016, MoFEC, through the CRGE facility, has been engaging with the AF. It has since secured USD 10 million for a climate smart integrated rural development project which has started implementation.
Austria: The Government of Austria was the first contributor to the CRGE facility, which contributed in building confidence of other partners. The contribution of the Austria financed projects in 2 woredas as part of the Fast Track Investment projects.
Climate and Development Knowledge Network (CDKN): CDKN has been partnering with various institutions of the Government of Ethiopia. It has also partnered with CRGE Facility in a number of thematic issues. In particular CDKN supported CRGE Facility’s accreditation to GCF and AF. CDKN has also played a key role in the design and development of proposals for the GCF and AF.
Denmark: The Danish government is one of the CRGE partners. It has contributed to the CRGE Facility capitalization, which has financed projects in two sectors in 6 woredas. Further, the Danish government is providing support to the capacity building activities of the facility and CRGE sectors.
DfID UK partnership has been one of the pioneering partnerships for the facility. UK/DFID committed about $20 million to the facility, that has effectively operationalized the facility. The UK contribution financed 26 Fast Track Investment Projects covering 6 CRGE sectors, in all regions and had a considerable development and climate outcomes and outputs. DFID also supported various analytical works and seconded an adviser to the Facility.
Global Green Growth Institute (GGGI): GGGI has been partnering with the Government of Ethiopia since 2010 and exclusively operates in the CRGE planning and implementation domain. The partnership has continued and now entered a new phase, upon the signing of the country program framework. Currently, the organization is partnering with Ministry of Finance and Economic Cooperation (MoFEC)/CRGE Facility, Ministry of Environment, Forest and Climate Change (MEFCC), Industrial Park Development Corporation and the Prime Minister’s Office. It has deployed senior sector advisors in these organizations and is undertaking a number of need based analytical works, such as CRGE Financial need analyses, MRV, and PES.
Green Climate Fund (GCF): Following its accreditation by the fund in 2016, MoFEC, through the CRGE facility, has been engaging with the GCF. It has since secured a support for a program entitled ‘responding to the increasing risk of drought: building gender-responsive resilience of the most vulnerable communities’, valued at USD 50 million.
Norway: CRGE partnership with the Norwegian Government mainly focuses on REDD+ readiness and implementation in Ethiopia. While various actions have been in progress in the readiness segment, a REDD+ investment plan was developed and approved. As a result, program implementation is now underway with a support of about $75 million.
The World Bank: The World Bank has been partnering with the CRGE Facility on various thematic issues. Currently, multi-sector investment planning on climate resilience, carbon pricing study, and country environment analysis are undergoing through the World Bank partnership. Various workshops including stakeholders’ workshop on country environmental analysis and on country environmental analysis have been conducted in partnership.
UNCT: The United Nations Country Team, under the leadership of UNDP, is partnering with GOE’s institutions to undertake landmark diagnostic study on drought resilience. International food policy research institute has been contracted to undertake the study.
UNDP: UNDP has been a partner in the CRGE and environment areas for many years including pre-CRGE period. Currently, UNDP is partnering with MOFEC / CRGE Facility and MEFCC in support of CRGE implementation. UNDP has deployed three senior advisors to the facility and has been financing the operation of the facility. In addition, it has undertaken a number of analytical and project design initiatives. UNDP’s partnership has continued and it is currently engaged in supporting the implementation of different programs managed by the facility and in building capacity of the facility through trainings.
UNECA: United Nations Economic Commission for Africa, as a regional organization, had a limited interaction with the CRGE Facility. However, given it renewed interest in the area of green economy, it has published a number of knowledge products. Recently, the Facility and ECA has initiated a new partnership in the thematic area of the Green Economy, with long-term perspective. The partnership focus areas and scope were driven by the Ethiopian need and the comparative advantage of the UNECA.