The CRGE Facility was established in 2013 to handle the financial aspects of CRGE implementation, according to the 2021 NDC, and the Green Climate Fund listed 14 projects covering Ethiopia with US$436 million of GCF financing in October 2026. The National Bank of Ethiopia joined the NGFS in October 2025 and, under a programme launched with the EIB in May 2025, is to develop a green taxonomy and climate risk framework. ECMA and the Ethiopian Securities Exchange, launched in January 2025, introduced a sustainable securities framework in May 2026.
7.1
What is in force
The CRGE Facility, established in 2013, combines the Ministry of Finance for the financial aspects of CRGE implementation with the environment commission for the technical aspects12. In October 2026 the Ministry of Finance is the GCF direct access entity for Ethiopia and the Ministry of Planning and Development is the National Designated Authority3. Proclamation No. 1361/2024, published in the Federal Negarit Gazette on 31 January 2025 and in force on publication, created the Green Legacy and Degraded Landscape Restoration Special Fund, which is to receive 0.5–1.0% of the annual federal budget from domestic revenue4.
The National Bank of Ethiopia announced on 23 October 2025 that it had joined the Network for Greening the Financial System5. Under the Greening Financial Systems Programme launched with the EIB on 19 May 2025, NBE is to integrate climate risk into supervision and develop a climate risk disclosure framework and a first National Green Taxonomy6. No NBE directive on climate risk or green lending was found on official websites as of 19 October 2026. On the capital market, the Ethiopian Securities Exchange was launched on 10 January 2025, and on 28 May 2026 ECMA and ESX soft-launched a Sustainable Securities Guideline, a Minimum Documentation Pack and an ESX guideline on listed ECMA-labelled sustainable securities, covering green, social, sustainability and sustainability-linked securities78. In October 2026 the Ministry of Planning and Development acts as Designated National Authority for Article 6 carbon crediting under a Standardized Crediting Framework9. The Accounting and Auditing Board of Ethiopia discussed the ISSB standards IFRS S1 and S2 with audit firms in November 2024 without setting an adoption date, and its sustainability reporting page gave no Ethiopian adoption date in October 20261011.
Building the green-finance framework
2013
CRGE Facility under the Ministry of Finance1Institution
Oct 2017
First GCF project with the Ministry of Finance as direct access entity12Finance
Jun 2021
Capital Market Proclamation No. 1248/2021 adopted by the House of Peoples' Representatives, in force 23 July 2021813Law
Mar 2022
GCF approves IGREENFIN for agricultural banks14Finance
Climate Resilient Green Economy (CRGE) StrategyFederal Government strategyEndorsed in 2011
The strategy set out a path to middle-income status by 2025 while holding total emissions at about 145–150 Mt CO2e, 64% below the business-as-usual projection of 400 Mt CO2e for 20302. It has over 60 initiatives under four pillars, of which the first covers crop and livestock practices for food security and farm income with lower emissions and the second covers forests2. Full implementation was estimated at US$150 billion until 2030, an estimate that covered mitigation and not adaptation, and the sector climate resilience strategy for agriculture and forestry at US$600 million to 20302.
Recent changes: A CRGE Facility was established in 2013 under the Ministry of Finance for the financial aspects of implementation1. A 2020 progress assessment covered implementation from 2011 to 20192.
National Adaptation Plan (NAP-ETH)Federal Government plan, with an implementation roadmap of August 2020Developed in 2017, implementation period 2019–2030
The updated NDC states that Ethiopia developed NAP-ETH in 2017 and prepared a gender analysis, an implementation roadmap and a resource mobilisation strategy between 2018 and 20201. NAP-ETH identifies 18 adaptation options and five strategic priorities to be implemented between 2019 and 203018.
Ethiopia committed to reduce emissions by 68.8% below a business-as-usual level of 403.5 Mt CO2eq in 2030, conditional on international support, of which a 14% reduction is unconditional1. Livestock accounted for 48% and land use change and forestry for 35% of projected business-as-usual emissions in 20301. Implementation was estimated at USD 316 billion over ten years, with USD 63.2 billion (20%) from domestic sources and USD 252.8 billion from international climate finance1.
Recent changes: The first NDC had aimed at a 64% reduction below business as usual by 20301. Superseded for the period to 2035 by NDC 3.0 of September 202515.
Long-Term Low Emission and Climate Resilient Development Strategy (2020–2050)UNFCCC submission2023
The strategy aims at net zero emissions by 2050 and builds on the CRGE strategy and the NDCs19. It compares a business-as-usual scenario with three net-zero scenarios, of which the NDC-aligned scenario meets the 2030 NDC target and reaches net zero by 205019. Climate Change Laws of the World dates the document to 202320.
Green Legacy and Degraded Landscape Restoration Special Fund Establishment and Administration ProclamationProclamation No. 1361/2024Signed 31 Jan 2025, Federal Negarit Gazette 31st Year No. 16 of 31 Jan 2025, in force on publication
The Proclamation establishes a special fund to scale up the Green Legacy Initiative and restore degraded landscapes4. The federal allocation is set at 0.5 to 1.0 percent of the annual federal budget from domestic revenue sources, approved each year by the House of Peoples' Representatives, and regions provide matching budgets for supported projects4. NDC 3.0 counts the fund among the domestic resources for its at least 22.5% domestic financing share15.
Ethiopia commits to reduce emissions by 70.3% by 2035 relative to a revised business-as-usual level of 237.6 MtCO2e, conditional on international support, against a 40.7% reduction in the unconditional scenario15. Implementation is estimated at USD 106.35 billion, of which USD 66.35 billion for mitigation and USD 40 billion for adaptation, with at least 22.5% from domestic resources15. The NDC also covers carbon markets and loss and damage15.
Standardized Crediting Framework for Article 6 cooperationMinistry of Planning and Development, Designated National AuthorityPublished on the ministry's climate portal, read in October 2026
The framework sets the governance, standards and procedures for generating and authorising carbon credits under Article 6 of the Paris Agreement, with a Governing Board, a Technical Committee and an Administrator9. It is being tested through the national clean cooking and off-grid renewable energy programmes with World Bank Ci-Dev support, and the ministry links it to NDC 3.0 and the National Carbon Market Strategy (2025)9. No text of a carbon market proclamation was found on official websites as of 19 October 2026.
Sustainable Securities Guideline and ESX Guideline on Listed ECMA-Labelled Sustainable SecuritiesEthiopian Capital Market Authority and Ethiopian Securities ExchangeSoft launch 28 May 2026
The framework, with a Minimum Documentation Pack, supports the issuance of green, social, sustainability and sustainability-linked securities in Ethiopia8. It sits under the Capital Market Proclamation No. 1248/2021, which established ECMA and under which ESX is licensed822.
Ministry of Finance and the environment commission
National vehicle for the financial and technical aspects of CRGE implementation
June 2021
Capital Market Proclamation No. 1248/2021
House of Peoples' Representatives
Establishes the Ethiopian Capital Market Authority, legal basis of the Ethiopian Securities Exchange
31 January 2025
Proclamation No. 1361/2024
Federal Government
Green Legacy and Degraded Landscape Restoration Special Fund, 0.5–1.0% of the federal budget from domestic revenue, in force on publication
10 January 2025
Launch of the Ethiopian Securities Exchange
ESX
Exchange with equity, fixed income and money market segments, established in October 2023
19 May 2025
Greening Financial Systems Programme
NBE with the EIB
Support for climate risk supervision, a climate risk disclosure framework and a first National Green Taxonomy
23 October 2025
Membership of the NGFS
National Bank of Ethiopia
Joined the Network for Greening the Financial System
28 May 2026
Sustainable Securities Framework (soft launch)
ECMA and ESX
Sustainable Securities Guideline, Minimum Documentation Pack and ESX guideline for labelled green, social, sustainability and sustainability-linked securities
2026
Standardized Crediting Framework
Ministry of Planning and Development (Designated National Authority)
Crediting framework for Article 6 cooperation, tested on clean cooking and off-grid energy programmes
Source: UNFCCC · ECMA · FAOLEX · ESX · EIB · NBE · MoPD — Dates as given by the issuing institution. No NBE directive on climate risk or green lending and no published national green taxonomy were found on official websites as of 19 October 2026.
7.2
Climate finance flows
NDC 3.0 reports that external commitments for mitigation and adaptation averaged USD 1.7 billion a year in 2021–2025, 7% of estimated needs of USD 25.3 billion a year15. International public financiers provided 92% and private investors 8%, and agriculture, forestry and other land use received 29% of climate finance, an average of USD 486 million, against 83% of emissions15. NDC 3.0 puts total financing needs at USD 106.35 billion to 2035, against USD 316 billion over ten years in the updated NDC of 2021151.
Who provided climate finance, 2021–2025
Share of climate finance received, as reported in NDC 3.0
92%
International public financiers · 92 %Private finance, domestic and international · 8 %
Source: UNFCCC — Grants made up 70% of public climate finance in the same period.
Climate finance needs in the national climate plans
US$ billion, as estimated in each document
Mitigation (US$ bn)
Adaptation (US$ bn)
CRGE strategy (2011, to 2030)
150
–
Updated NDC (2021, 10 years)
275.5
40.5
NDC 3.0 (2025, to 2035)
66.4
40
Source: World Bank Documents · UNFCCC — The CRGE estimate of US$150 billion covered mitigation and not adaptation, according to the 2020 progress assessment. The updated NDC planned 20% of its US$316 billion from domestic sources and NDC 3.0 at least 22.5% of its US$106.35 billion. The three estimates use different periods and methods and are not directly comparable.
Approved and disbursed GCF financing for single-country projects in Ethiopia
US$ million, as shown on the GCF project pages in October 2026
GCF financing approved (US$ m)
Disbursed (US$ m)
FP058 (2017)
45
45
FP136 (2020)
165.2
110.2
FP243 (2024)
45
11.2
FP289 (2026)
25
0
Source: GCF — Disbursed amounts are own sums of the disbursement entries on each project page (100%, 67%, 25% and 0% of approved financing). The year in brackets is the year of Board approval. FP058 and FP243 are implemented by the Ministry of Finance as GCF direct access entity, FP136 by the World Bank and FP289 by KOICA.
Climate finance received, 2021–2025, as reported in NDC 3.0
Indicator
Value
External commitments for mitigation and adaptation, annual average 2021–2025
US$1.7 billion
Estimated climate finance needs per year
US$25.3 billion
External commitments as a share of needs
7%
Adaptation share of climate finance
56%
Mitigation share of climate finance
38%
International public financiers
92%
Private finance, domestic and international
8%
Grants in public climate finance
70%
Agriculture, forestry and other land use, share of climate finance (annual average)
29% (US$486 million)
Agriculture, forestry and other land use, share of emissions
83%
Source: UNFCCC — Values as stated in NDC 3.0 (September 2025). The document does not give the year-by-year series.
7.3
Green Climate Fund portfolio
In October 2026 the GCF listed 14 projects covering Ethiopia with total GCF financing of US$436 million and readiness support of US$4.3 million3. Four are single-country projects. The Resilient Landscapes and Livelihoods Project (FP136), approved in August 2020, carries US$165.2 million of GCF loans and grants for sustainable land management and resilient agriculture, of which 67% had been disbursed23. The drought resilience project FP058 of the Ministry of Finance, approved in October 2017, had disbursed its full US$45.0 million12. Among multi-country projects, IGREENFIN (FP183) is to expand credit and technical assistance for farmers, cooperatives and small enterprises through agricultural banks in 13 countries, and BREFOL (FP239) includes credit lines and agricultural insurance for the Horn of Africa1425.
Green Climate Fund financing for agriculture and land-related projects covering Ethiopia
GCF financing approved, US$ million (multi-country projects shown in full)
GCF financing (US$ m)
FP136 Resilient landscapes and livelihoods (World Bank)
165.2
FP239 BREFOL food and livelihoods (AfDB, 5 countries)
FP128 Arbaro sustainable forestry fund (MUFG, 9 countries)
25
Source: GCF — GCF financing as shown on each project page, excluding co-financing. Multi-country amounts are not split by country. The GCF listed 14 projects covering Ethiopia with total GCF financing of US$436 million in October 20263.
Green Climate Fund projects covering Ethiopia
Code
Project
Entity
Approved
Countries
GCF financing (US$ m)
Status
FP291
ASCENT-GREEN, resilient energy access
World Bank
28 Mar 2026
21
250.0
Approved
FP289
Urban climate resilience through nature-based solutions
KOICA
28 Mar 2026
1
25.0
Approved
FP258
Advancing Early Warnings for All (EW4All)
UNDP
20 Feb 2025
7
103.2
Under implementation
FP257
RE-GAIN, scaling solutions for food loss
AGRA
20 Feb 2025
7
75.6
Under implementation
FP243
Safe water powered by renewable energy in drought-vulnerable regions
Ministry of Finance
24 Oct 2024
1
45.0
Under implementation
FP239
BREFOL, climate resilience for food and livelihoods in the Horn of Africa
IGREENFIN I, greening agricultural banks in the Great Green Wall countries
IFAD
29 Mar 2022
13
116.9
Under implementation
FP168
Leveraging Energy Access Finance (LEAF)
AfDB
1 Jul 2021
6
170.9
Under implementation
FP136
Resilient Landscapes and Livelihoods Project
World Bank
21 Aug 2020
1
165.2
Under implementation
FP128
Arbaro Fund, sustainable forestry
MUFG Bank
12 Mar 2020
9
25.0
Under implementation
FP099
Climate Investor One
FMO
20 Oct 2018
19
100.0
Under implementation
FP058
Responding to the increasing risk of drought
Ministry of Finance
2 Oct 2017
1
45.0
Under implementation
FP027
Universal Green Energy Access Programme
Deutsche Bank
14 Oct 2016
7
80.0
Under implementation
Source: GCF — GCF project pages, October 2026. Multi-country projects show the full GCF amount for all countries. The GCF country page gives total GCF financing of US$436 million for Ethiopia.
7.4
What it means for agricultural lenders
A taxonomy in preparation
NBE is developing a first National Green Taxonomy and a climate risk disclosure framework under the programme launched with the EIB in May 2025, which also supports commercial banks on green lending portfolios and climate risk assessment6.
Climate shocks and supervision
About 6.85 million livestock died in the drought between late 2021 and March 2023, and NDC 3.0 projects crop productivity losses of 7.03% from wet conditions by 20353315. NBE plans to integrate climate-related financial risk into its supervisory framework6.
Concessional lines through agricultural banks
IGREENFIN combines US$82.8 million of GCF loans and US$34.1 million of grants for climate-resilient and low-emission lending to farmers and their organisations in 13 countries, including Ethiopia14.
Labelled securities as a funding route
The guidelines introduced by ECMA and ESX in May 2026 provide for green, social, sustainability and sustainability-linked securities, with an ESX guideline for listing ECMA-labelled securities8.
Land use received 29% of climate finance
Agriculture, forestry and other land use received 29% of climate finance in 2021–2025 against 83% of emissions, and private finance 8% of the total15.
A domestic restoration fund
The Green Legacy Special Fund is to receive 0.5–1.0% of the federal budget from domestic revenue under Article 6 of Proclamation No. 1361/2024, approved each year by the House of Peoples' Representatives, with regional matching budgets for restoration and agroforestry projects4.
AI-assisted content, human-reviewed: This page was generated with the assistance of artificial intelligence and reviewed by a human editor. (last review: October 2026) Despite review, errors or outdated values may remain; please verify critical figures against the linked primary sources before relying on them. Nothing here is investment, legal or financial advice.
