The Government of the Federal Democratic Republic of Ethiopia launched its Climate Resilient Green Economy (CRGE) strategy in December 2011 in Durban, South Africa during the 17th session of the Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC). The strategy aims to build carbon neutral and climate resilient middle-income economy by 2025. It also aims to reduce 64% of the national greenhouse gas emission by 2030 compared with the ‘business as usual’. Following the strategy, sector specific climate-resilience strategies were developed for agriculture & forestry, water &energy and transport sectors. Based on the existing climate resilience and green-growth strategies, Ethiopia has also submitted its Nationally Determined Contribution (NDC) to UNFCCC.
The CRGE strategy elaborates a number of low carbon emitting actions across key economic sectors to achieve its vision. The strategy also tasked the Ministry of Finance and Economic Cooperation (MoFEC) to establish a national climate fund to mobilize climate finance from various sources to realize this vision. Accordingly, MoFEC in collaboration with the Ministry of Environment, Forest and Climate Change (MEFCC) established (late 2012) and operationalized (early 2013) the CRGE Facility to attract climate finance to support the institutional building and implementation of Ethiopia’s CRGE Strategy. The facility is managed under the UN Agencies, CRGE Facility and Regional Economic Cooperation Directorate in MoFEC.
As Ethiopia’s national climate fund, the CRGE Facility will be recognized nationally and internationally as a premiere climate finance and CRGE coordination and delivery entity.
Through the development of partnerships with development partners and private sector, and through enhancing domestic investments from government, the CRGE Facility’s mission is to:
- Mobilize funding in a flexible, coordinated and predictable manner that is invested in climate relevant projects and programs compliant with national and international fiduciary standards;
- Support efficient and effective actions in GHG emissions reduction and increasing resilience as set out in the national Climate Resilience Green Economy (CRGE) strategy, which is aligned with sustainable development goals; and
- Provide a unified engagement point where government, development partners, civil society and other stakeholders can engage and make decisions about climate finance related issues.
Organisational and Governance Structures
The CRGE Facility is governed by a Management Committee, which is co-chaired by MoFEC and MEFCC state ministers. All sector ministries involved in the CRGE strategy are represented both at state minister level and by senior level technical expert from their CRGE unit. An Advisory Board, which is comprised of representatives from the development partners, private sector, Multi-lateral development partners, CSOs, and academia functions to enable stakeholders to share and review information relevant to the performance of the CRGE facility and to influence, as appropriate, the resources available to the facility and the ways in which these are utilized.
A secretariat comprised of finance and technical team performs the day-to-day work, enabling the Management Committee to perform their duties in an efficient and effective manner. The secretariat reviews and appraises projects and programs and prepares funding decision note for the management committee.
Basic structure of the CRGE facility
The scope of work of the Facility include: resource mobilization and allocation; financial management; result based payment and emission trading; monitoring and evaluation; MRV of climate change projects and programs; ensuring compliance to environmental and social safeguard standards; technical assistance and capacity building; project and program design, preparation and appraisal; generation, management and dissemination of knowledge and data; private sector engagement; sub-national engagement; coordinating international
development partners on climate finance support; and establishing and managing climate finance tracking system.
- Set up the financial and program management and environment and social safeguards systems as well as Monitoring and Evaluation (M&E) framework that are required by international climate funds as part of their due diligence processes;
- Made significant contribution to the mainstreaming of the CRGE strategy into the second Growth and Transformation Plan (GTP-II) (2016-2020);
- Developed a CRGE registry;
- Successfully implemented over 26 adaptation and mitigation projects valued at round 45 million USD in total in various parts of the country through its Fast Track Initiative;
- Mobilized an additional USD 80 million for REDD+ Investment Plan;
- Spearheaded the accreditation of MOFEC for direct access to funds from the Green Climate Fund (GCF) and Adaptation Fund (AF);
- Mobilized USD 10 million from AF for a climate smart integrated rural development project;
- Mobilized USD 50 million project from the GCF to implement a program entitled Responding to the increasing risk of drought: building gender-responsive resilience of the most vulnerable communities.
- Mobilized 1.5 Million USD from the World Bank from the Pilot Program for Climate Resilience (PPCR) to lead on developing a multi-sector investment plan (MSIP) to scale up achievement of goals related to resilient low carbon green growth;
- Developed Climate Finance Tracking and Projection Methodology; Conducted a national CRGE capacity assessment and prepared a CRGE Capacity Development Framework Road Map to strengthen government capacities to operationalize the CRGE strategy, plan, mobilize resource and deliver green, climate resilient development results;
- Developed a private sector engagement strategy.
- Public Procurement and Property Administration Agency
- Public Enterprises Trustee Board
- Public Procurement and Property Disposal Service
- Ethiopian Petroleum Supply Enterprise
- Accounting and Audit Board of Ethiopia