By: Goshu Melisew
Ethiopia's Minister of Planning and Development, Dr. Fitsum Assefa, has stressed the need for domestic financial institutions to take an active role in the country’s efforts to combat climate change.
She stated that the government is implementing integrated measures to counter climate change, highlighting the progress made over the past six years in achieving green growth.
Over the last three years, significant successes have been recorded in areas such as watershed development and summer wheat production.
Fitsum further noted that Ethiopia’s commitment to climate resilience and green development is evident in various initiatives, including afforestation, extensive sustainable land use, and climate-smart agriculture.
She stressed that addressing climate change is not solely the responsibility of the government but requires collaborative efforts from multiple stakeholders, including the financial sector.
Recognizing their exposure to climate-related impacts, financial institutions are encouraged to leverage their resources and expertise in financing sustainable projects.
State Minister of Planning and Development, Seyoum Mekonnen, also highlighted that domestic financial institutions need to position themselves as competitive players in global financing efforts for climate change mitigation.
“You must establish partnerships with global financial institutions to invest in green development, climate change mitigation and accessing finance,” he urged financial institutions.
Mesganaw Eyassu, the Climate Finance Advisor at the Ministry of Planning and Development, presented a research paper outlining opportunities for financial institutions to participate in green development initiatives.
The study highlighted various financing options for supporting climate-related investments, including sustainable agriculture, renewable energy, and innovative climate finance, among other sectors.
The Ministry held a consultative meeting with representatives from banks, insurance companies, and other financial institutions to discuss their contributions to climate change mitigation efforts under the theme “The Financial Sector in the Climate Change Agenda.”
During the discussion, financial institutions reaffirmed their interest in supporting climate action initiatives.