Ethiopia and the United Nations Development Programme (UNDP) signed a memorandum of agreement (MoA) on Ethiopia's Climate Resilient Green Economy (CRGE) strategy at a ceremony held at the Ministry of Finance & Economic Development (MoFED).
MoFED will coordinate the development and implementation of the facility's activity and assume full responsibility for the funds disbursed by the Multi-Partner Trust Fund Office, according to the MoA signed. The UNDP serves provisional trustees and provides fund administration, management and other support services related to the establishment and management of the facility.
CRGE aims for a triple win: to achieve middle income, carbon neutral and climate resilient economy status by 2025.
A UNDP report has estimated that the world needs to spend 86 billion dollars annually, by 2016, for climate change adaptation.
It is estimated that there is a 150tn carbon concentration inEthiopia. If measures are not taken the concentration will reach 400tn by 2020.
To meet the 2025 Net Zero Carbon Plan, there are 60 activities specified for the application of ECRGE. The specification includes carbon trading and direct investment on crop, livestock, industry, forest, green city, building, transportation and others.
For the realisation of a green economy vision Ethiopia needs 7.5 billion dollars annually.