Landscape of Climate Finance in Ethiopia

This report by the Climate Policy Initiative analyzes the climate finance landscape in Ethiopia for the 2019/2020 period, highlighting a significant gap between committed investments and estimated needs, as well as a heavy reliance on international public grants.

• In 2019/20, Ethiopia committed an average of USD 1.7 billion per year to climate change activities, which represents only 7% of its estimated climate finance needs of USD 25.3 billion and less than 2% of its GDP for that period.
• Ethiopia's climate finance distribution is skewed toward adaptation (56%) compared to mitigation (38%), which differs significantly from the global average of 7% for adaptation and 90% for mitigation.
• The climate finance landscape is dominated by international public financiers, who account for 92% of funding, while private finance from domestic and international sources accounts for only 8%. Grants make up 70% of public climate financing.
• Agriculture, forestry and other land use (AFOLU) is the primary source of greenhouse gas emissions in Ethiopia at 83%, and it received the largest share of climate finance in 2019/20, totaling USD 486 million (29%).
• The report recommends that the Ministry of Finance and the CRGE Facility create a public knowledge management system to track domestic public expenditure and other investments, and suggests that the National Bank of Ethiopia improve the regulatory environment to accelerate private green investment by developing capital markets and addressing foreign currency shortages.

APA

Climate Policy Initiative (2022). Landscape of Climate Finance in Ethiopia. https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-ethiopia/

Chicago

Climate Policy Initiative. Landscape of Climate Finance in Ethiopia. 2022. https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-ethiopia/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Landscape of Climate Finance in Ethiopia |date=2 November 2022 |url=https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-ethiopia/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2022landscape, author = {{Climate Policy Initiative}}, title = {{Landscape of Climate Finance in Ethiopia}}, institution = {Climate Policy Initiative}, year = {2022}, month = nov, url = {https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-ethiopia/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }