Ethiopia’s Path to Net Zero and Climate-Resilient Development: Policies, Costs, and Co-benefits

The analysis finds that pursuing a net zero emissions pathway by 2050 in Ethiopia would increase the average real annual GDP growth rate by 1.4 percent relative to a business-as-usual scenario. While the NZE pathway requires an additional US$66.98 billion in cumulative investment costs by 2050, it is projected to generate $111 billion in cumulative co-benefits through increased real GDP and avoid $89 billion in costs, primarily in energy. Social co-benefits include an average of 672,000 additional green jobs and significant increases in disposable incomes (10.5 percent by 2030 and 53.1 percent by 2050). The benefit-cost ratio for investments in mitigation and adaptation is estimated to rise from 1.04 in 2030 to 2.99 by 2050.

• The net zero emissions (NZE) pathway is projected to increase Ethiopia's average real annual GDP growth rate by 1.4 percent between 2020 and 2050 when compared to the business-as-usual (BAU) scenario.
• Implementing the NZE pathway involves a cumulative investment cost increase of US$66.98 billion (net present value) over BAU by 2050, but yields $111 billion in cumulative development co-benefits via increased real GDP and $89 billion in avoided costs, mainly in the energy sector.
• The NZE pathway provides significant social and environmental co-benefits, including an average of 672,000 more green jobs than the BAU scenario, faster poverty reduction, and disposable income increases of 10.5 percent by 2030 and 53.1 percent by 2050.
• The benefit-cost ratio (BCR) for mitigation and adaptation investments is expected to grow over time, starting at 1.04 by 2030 and reaching 2.99 by 2050.
• Early policy implementation in the energy, forestry, and land use sectors is critical for delivering economic and ecosystem benefits; delaying these interventions poses risks to Ethiopia's economic growth and modernization.

APA

World Resources Institute (n.d.). Ethiopia’s Path to Net Zero and Climate-Resilient Development: Policies, Costs, and Co-benefits. https://www.wri.org/research/ethiopias-path-net-zero-climate-resilient-development

Chicago

World Resources Institute. Ethiopia’s Path to Net Zero and Climate-Resilient Development: Policies, Costs, and Co-benefits. n.d. https://www.wri.org/research/ethiopias-path-net-zero-climate-resilient-development.

Wikipedia

{{cite report |author=World Resources Institute |title=Ethiopia’s Path to Net Zero and Climate-Resilient Development: Policies, Costs, and Co-benefits |url=https://www.wri.org/research/ethiopias-path-net-zero-climate-resilient-development |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendethiopias, author = {{World Resources Institute}}, title = {{Ethiopia’s Path to Net Zero and Climate-Resilient Development: Policies, Costs, and Co-benefits}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/ethiopias-path-net-zero-climate-resilient-development}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }