BY: Goshu Melisew
The UNDP has committed to helping Ethiopia innovatively mobilize $2 billion in green financing by 2030, supporting exploration of green bonds, carbon credits, debt swaps, and payments for ecosystem services. This was revealed during financing Ethiopia’s Green Transition- annual Development Conference, held in Addis Ababa.
Ethiopia's commitment to innovative approaches to address persistent challenges in the realm of green finance and renewable energy is spotlighted at UNDP's Annual Development Conference, where experts, policymakers, and global implementers discussed the intersection of climate resilience and sustainable development.
UNDP-Ethiopia Resident Representative, Samuel Doe said: “As we stand at a critical juncture in history, acutely aware of the unprecedented global challenges posed by climate change. These challenges demand urgent action, driven by global solidarity and a shared vision for a sustainable future."
Addressing a Climate Crisis with Innovation Ethiopia, a nation navigating the complex challenges of climate change, has been disproportionately affected by global warming, ranking 155 out of 187 countries on the global climate vulnerability index in 2022.
With a rapidly growing population, deforestation, and soil degradation exacerbating economic and environmental stresses, the nation has adopted bold strategies to address these challenges, including the Climate Resilient Green Economy (CRGE) initiative, Ethiopia's Long-Term Low Emission and Climate Resilient Development Strategy (2020-2050) and the Green Legacy Initiative (GLI).
The conference highlighted Ethiopia's successes, such as mobilizing $400 million in grants from multilateral and bilateral funds over the past decade and leveraging its hydropower and renewable energy potential, alongside the barriers it continues to face.
Members of the diplomatic community to advocate for Ethiopia's access to climate finances including green bonds, carbon credits, debt swap, etc. for the country to continue its vital work in combating climate change, the UNDP representative urged.
“Ethiopia has accomplished what few countries have achieved in addressing the existential threats posed by climate change. It deserves to be fully rewarded for its commitment and innovation. I urge all members of the diplomatic community to advocate for Ethiopia's access to climate finances including green bonds, carbon credits, debt swap, etc. for the country to continue its vital work in combating climate change.”, he reiterated.
The recent breakthrough at COP 29 in Baku, Azerbaijan, which saw developed nations commit to tripling climate finance to $300 billion annually by 2035, offers new opportunities for countries like Ethiopia.
Additionally, agreements on carbon markets under the Paris Agreement provide mechanisms to generate and trade carbon credits, presenting another avenue for resource mobilization.
East Africa, including Ethiopia, has demonstrated progress by securing nearly 44 billion USD in climate finance from 2011-2021.
However, with Africa receiving only 11% of the required funding to meets its NDs,innovative solutions are urgently needed, it was learnt.