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The Ethiopian Climate Resilient Green Economy (CRGE) Strategy and the CRGE Facility

The CRGE Vision

The CRGE Vision was the first step in Ethiopia's efforts to achieve climate-resilience green development. It formalized Ethiopia's aspiration to become a climate-resilient green economy by 2025, and set the framework for the development of concrete policy action. The vision summarizes key challenges and opportunities arising from climate change in Ethiopia, defines common goals and objectives, and outlines key steps required to achieve for achieving a climate-resilient development. Prepared under the leadership of the Prime Minister's office, the CRGE vision has been an important step for creating awareness about the benefits of climate resilience for economic and social development across the government, and helped building a momentum for change. The CRGE Vision also received noteworthy international attention when it was presented at the 2011 climate negotiations in Durban.

The CRGE Strategy

Building on this vision, Ethiopia began to develop a national CRGE Strategy to identify and prioritise concrete steps for building a climate-resilient green economy. The CRGE strategy comprises two distinct components: the mitigation-focused Green Economy (GE) Strategy and the adaptation-focused Climate Resilience (CR) Strategy. The GE Strategy has been published in September 2011, and the development of the CR strategy is going on (it is completed for the Agriculture and Water, Irrigation and Energy Sectors).

Getting the Institutions Right

Linking climate change and development planning requires close co-ordination and co-operation across ministries and levels of government. In recognition of this, Ethiopia has worked to establish a new institutional set-up for effective development and implementation of the CRGE. The concrete design of this structure has evolved significantly since the CRGE launch in 2011, in response to administrative, coordinative or technical needs as they became apparent. The changing nature of the CRGE's institutional framework reflects the novelty of climate-resilient development planning and points to the need to adopting a flexible, 'learn-by-doing' approach.

To spur the development of the CRGE strategy in early 2011, Ethiopia has put in place a new institutional system. The environmental Council, chaired by the Prime Minister Office and comprising members from federal ministries, presidents of regional states, and private sector and civil society representatives provides overall oversight and responsibility the realization of the CRGE Vision. A new body, the CRGE Inter-Ministerial Committee, was established to directly oversee and guide the process to ensure overall policy coherence and alignment to existing government structures. The CRGE Inter-Ministerial Committee is composed of high-level representatives from line ministries and chaired by the Prime Minister's Office, which provides a direct link to Ethiopia's key national planning institution. Line Ministries have also established CRGE units, with overall responsibility of coordinating and facilitating the planning and implementation of sectorial CRGE strategies. The government furthermore has upgraded the Ethiopian Environmental Protection Agency to obtain ministerial status with enhanced role of coordinating the realization of the CRGE Vision.

Securing sufficient financing- The CRGE Facility

Finance is one of the three constraints (in addition to technology and capacity), which can pose a major challenge to effectively implement the CRGE. Preliminary estimates indicate that building the green economy will alone require total expenditure of around US$ 150 billion over the next 20 years[1], with around US$ 80 billion of required funding estimated to be capital investment and the remaining US$ 70 billion assessed as being necessary to cover operating and program expenses. The government of Ethiopia should therefore mobilize significant amount of new and additional finance from international, domestic, public and private sources.


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