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

This research paper by the World Resources Institute analyzes a net zero emissions (NZE) pathway for Ethiopia by 2050, comparing it to a business-as-usual (BAU) scenario. The study finds that while the NZE pathway requires higher investment, it yields superior economic growth, poverty reduction, and environmental co-benefits.

• 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.
• Achieving NZE by 2050 is estimated to require an additional US$66.98 billion in cumulative investment costs (net present value) over the BAU scenario. However, this is offset by $111 billion in cumulative co-benefits through increased real GDP and $89 billion in avoided costs, primarily in the energy sector.
• The NZE pathway provides significant social and environmental co-benefits compared to BAU, including an average of 672,000 more green jobs, improved air quality, and higher disposable incomes, which are projected to rise by 10.5 percent by 2030 and 53.1 percent by 2050.
• The benefit-cost ratio (BCR) for investments in mitigation and adaptation increases over time, starting at 1.04 by 2030 and rising to 2.17 by 2040 and 2.99 by 2050.

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} }