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Ethiopia: Govt Launches Green Economic Funding Facilit
The Climate Resilient Green Economy Facility (CRGEF) was launched on September 10, 2012, with the intent of supporting the government’s vision of attaining a middle income economy with low carbon growth by 2025.
The facility, an initiative of the government, is a financing mechanism aimed at mobilizing, accessing and combining both local and international public resources in the form of money to support Ethiopia’s climate resilient green economy,which was launched in 2011.
The launching was attended by Ahmed Shide, state minister for Finance and Economic Development (MoFED), Tewoldeberhan Gebreegziabher, director general of the Ethiopian Environmental Authority (EPA), Alessandra Tisot, UNDP country director, and UK ambassador Greg Dory.
Ministries, civil society, private sector, public sectors and the community at large will be in a position to access loans or grants under the facility by coming up with environment friendly projects and proposals through concerned ministries, which will submit them to MoFED for approval by the Facility’s managing committee.
The Facility’s governing institutions include ministerial steering committee, technical and management committees and an advisory group with non-decision making responsibilities.
The Ministerial Steering Committee will set up criteria for approval of investment plans,determine priority areas in line with national programmes while issuing policy direction and guidance, according to a paper presented at the launching. It will also approve annual programme, set up strategic direction and establish compliance committee to review appeals on facility decision on procedural omission and decision making.
The management committee chaired by MoFED will prioritize investment plans approved by technical committee and allocate funds as per committee guidelines and decision.
Moreover, facility advisory consists of development partners, representatives of multilateral organizations, international NGOs, civil society, private sector and academia. It has mandate of reviewing draft investment plans and provide comments and suggestions to CRGE technical and management committees.
The facility,which will continue operating indefinitely, is intended to serve all regions and ministries within the country starting as soon as the finances are available, according to Zerihun Getu, CRGE focal person within MoFED.
It will be getting its money from different partners including budgetary support from the government, private finance, carbon trading schemes, and development partners.
The money will be deposited under a UNDP account in New York and MoFED account in Ethiopia, said Zerihun.The UNDP’s responsibilities include mobilizing resources at international level and strengthening MoFED’s fund administration and management capacity, according to Ababu Anoge, UNDP national climate change specialist.
The UK government, whose ambassador, Greg Dorey attended the launching, pledged to contribute 24.3 million dollars to the fund. This is the second pledge after an earlier one by Norwegian government in 2011, at the launch of climate resilient strategy in Durban worthy 60 million dollars.
Ethiopia has established 60 green economy initiatives aimed at ensuring emission of gases not to exceed the current emission of 250 mega-tonne of carbon.
Ethiopia, the first African country to launch a green economy strategy in 2011, will spearhead the strategy in agriculture, energy, forestry & transport, and industrialization sectors. Projects will include mechanizing agriculture, expanding renewable energy supply, planting trees, and using improved cooking. Adapting of modern and energy efficient technologies in transport is also encouraged.
Ethiopia climate resilient green economy initiatives will pursue the triple goals of economic growth, net-zero emission and building resilience, according to the document that was presented during the launching.
The UN Security Council identified climate change as an emerging agency issue in 2011. Climate is currently dominating the UN top agenda, with countries striving to implement green economic strategies. Such strategies set up standards of reducing carbon emissions in line with development. Climate is implicated in 23pc of all African deaths, according to the UN’s Environment Programme.