The Climate Investment Funds (CIF) has approved a significant $37 million investment to support Ethiopia’s efforts to tackle climate change and promote sustainable development in its rural communities. This investment is complemented by an additional $492 million in co-financing from key development partners, including the African Development Bank (AfDB) and the World Bank. Together, these funds will enable Ethiopia to implement a comprehensive nature-based solution aimed at restoring degraded ecosystems, enhancing rural livelihoods, and addressing the effects of climate-related shocks.
Strategic Objectives of the Investment Plan
Ethiopia, a country heavily reliant on agriculture, faces pressing environmental challenges, including land degradation, deforestation, and the threat of desertification. With over 70% of its population living in rural areas and depending on agriculture for their livelihoods, the risks posed by climate change, including droughts and floods, are increasingly destabilizing. The new investment plan targets the restoration of 322,276 hectares of degraded land across the Amhara, Oromia, South Ethiopia, and Somali regions, focusing on reversing ecological damage and increasing resilience to climate change.
A key component of this initiative is the development of a national forest registry to monitor and protect Ethiopia’s valuable carbon-rich forests, which store approximately 10.1 billion tons of CO2 equivalent. Additionally, the plan aims to reduce the over-reliance on forests for timber and fuel by encouraging sustainable non-timber forest products, such as honey, coffee, spices, and bamboo.
Tariye Gbadegesin, CEO of CIF, stressed that nature-based solutions offer dual benefits—combating climate change while fostering community development. “By investing in sustainable livelihoods and farming practices, Ethiopia can reduce emissions and boost rural resilience,” he said.
Empowering Local Communities and Women
Community engagement is central to the success of this initiative. As part of the CIF’s commitment to inclusive development, $4 million will be allocated through the Dedicated Grant Mechanism to fund locally-driven, community-led projects. This approach aims to strengthen the capacity of rural communities to manage and restore their natural resources.
The plan also places a strong emphasis on empowering women, particularly farmers, who play a pivotal role in Ethiopia’s agricultural economy. Women will be provided with access to climate-smart farming techniques and opportunities to participate in high-value ventures, including ecotourism. The initiative will also support the formation of women-led cooperatives, enhancing their decision-making power and increasing their participation in the local economy.
The Ethiopian government has expressed strong support for the plan. H.E. Dr. Girma Amente, Ethiopia’s Minister of Agriculture, noted that the plan represents the country’s commitment to resilience through nature-based solutions, emphasizing the importance of collaboration among local communities, government bodies, and international partners.
Addressing Ethiopia’s Environmental and Economic Challenges
Ethiopia’s forests are under threat, with key ecosystems that produce 45% of the country’s coffee, a primary export, facing severe degradation. Nearly 11 million hectares of forest land are at risk of desertification, threatening both biodiversity and the livelihoods of farmers who rely on forest resources.
By focusing on ecosystem restoration and sustainable agriculture, this initiative aims to address the root causes of land degradation, while boosting food security and economic stability. Anthony Nyong, Director of Climate Change at AfDB, highlighted that the investment plan strengthens landscape management, promotes climate-smart agriculture, and supports resilient agribusinesses, all of which are vital for food security and ecosystem restoration.
Global Support and Partnerships
The $500 million funding package is part of CIF’s broader $370 million Nature, People, and Climate Investment Program (NPC), which focuses on enhancing land-use strategies in low-income countries to mitigate climate change while improving livelihoods. This program is a collaborative effort involving multilateral banks, private sector actors, and other stakeholders, ensuring that Ethiopia has the support needed to implement these ambitious goals.
Maryam Salim, Country Director at the World Bank, highlighted Ethiopia’s role in driving Africa’s landscape restoration agenda. “This initiative complements one of Africa’s most ambitious landscape restoration programs, protecting forests and biodiversity while bolstering community resilience,” she said, underlining the significance of this initiative in the context of regional and global climate action.
A Path Forward
The approval of this $500 million investment marks a critical step in Ethiopia’s journey towards sustainable development and climate resilience. By restoring ecosystems, empowering communities, and fostering a more sustainable agricultural economy, Ethiopia is not only addressing its environmental challenges but also positioning itself as a leader in nature-based climate solutions in Africa. This plan represents a forward-looking approach to mitigating the impacts of climate change while promoting long-term social and economic benefits for rural Ethiopians.
As the project moves forward, the continued support of international donors, along with active community involvement, will be key to ensuring the success of these ambitious restoration efforts.
References:
- Climate Investment Funds (CIF) Website
Visit the official CIF website for updates and details about their funding programs, including the Nature, People, and Climate Investment Program (NPC), which funds projects like the one in Ethiopia. - World Bank – Ethiopia
The World Bank’s country page on Ethiopia provides detailed reports and insights into the country’s development challenges and projects supported by the bank, including climate resilience and restoration initiatives. - African Development Bank (AfDB)
The AfDB’s site offers information on its climate-related initiatives in Africa, including its partnership in co-financing nature-based projects in Ethiopia. - Ethiopian Ministry of Agriculture
The Ethiopian government, specifically through the Ministry of Agriculture, provides reports and updates on national policies related to climate change, agriculture, and ecosystem restoration. - United Nations Environment Programme (UNEP)
UNEP provides global context for landscape restoration programs and nature-based solutions. - Climate Investment Funds Board Backs $500 Million Nature Plan for Ethiopia https://esgnews.com/climate-investment-funds-board-backs-500-million-nature-plan-for-ethiopia/
