OVERVIEW of the ETHIOPIA S CLIMATE RESILENT GREEN ECONOMY STRATEGY

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1 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA OVERVIEW of the ETHIOPIA S CLIMATE RESILENT GREEN ECONOMY STRATEGY Wondwossen Tadesse

2 1. Introduction Like most countries,ethiopia is experiencing the effects of climate change. For Ethiopia, green growth is a necessity as well as an opportunity to be seized. Its an opportunity realize our country's huge renewable energy and a necessity so as to arrest agro-ecological degradation that threatens millions of our citizens in poverty. Ethiopia therefore embarked upon the development of a Climate Resilient Green Economy strategy. 1

3 2. GTP/Climate Resilient Green Economy Strategy The strategy is built on a 5 year plan developed in 2010 aiming at the ambition of reaching a middle income status before Net emission of GHGs to become zero/ neutral CRGE strategy- addresses both climate change adaptation and mitigation objectives The preparation of the green economy strategy-finalized; National Adaptation Strategy-Ongoing 2

4 Developing a Climate Resilient Green Economy combines development, abatement and resilience initiatives Strategic framework Mitigation Abatement initiatives Development initiatives Climatecompatible development CRGE Adaptation Resilience initiatives Economic development Achieving middle income status by 2025 Abatement Keeping emissions constant by applying abatement measures in sectors such as forestry, agriculture and industry Becoming a green economy frontrunner by investing into lowcarbon infrastructure Resilience Reducing vulnerability to climatechange-associated risks: Gradual hazards (e.g., vector-borne disease) Event-driven hazards (e.g., landslides and flooding) Source: CRGE 3

5 1. Introduction For pursuing a green economic model, comparisons of emissions were made between a business as usual growth and a low carbon growth model across potential emitting sectors. It was found that under current practices, green house gases emissions would more than double from 150 Mt C02e in 2010 to 400 Mt Co2e in

6 Why Ethiopia requires to shift from the conventional growth to CRGE strategy?...national challenges and adverse effects Characteristics of conventional growth path Fossil fuel dependency Dependency on imports Increased pollution Deforestation/degradation of forests Land erosion Health issues from fuelwood smoke Unsustainable agriculture Reduction in soil fertility Increased vulnerability to drought and floods Challenges Increased poverty and reduced food security Reduction of quality of life and health Degradation of air and water quality Dependency on commodities and fuel imports Loss of natural assets and biodiversity Rapid growth of conventional transportation Congested cities with polluting vehicles Dependent on oil import Unsustainable practices in growing industry Increase of air and water pollution Exhaustion of resources Source: CRGE 5

7 2.1. Green Growth Strategy of Ethiopia Five Steps -followed to develop GGS of Ethiopia 1 Identify Priority Growth sectors Develop Baseline and BAU Reference Scenario Identification of abatement levers: Enlist and elaborate measure to reduce or avoid emissions and to enhance sequestration from afforestation/ reforestration and management of existing forests Prioritize measures: Feasibility Assessment and Cost Benefit Analysis Develop Implementation Plans 6

8 Thematic areas identified for the GGS preparation Goal of the sector and implications Contribution of CRGE 1 Power Build generation capacity to satisfy growing demand Enable infrastructure development by developing strategy to obtain financing Buildings/ Gr. Cities Forestry Soil Reach economic growth targets as planned in GTP Economic growth of each sector will lead to higher emissions Develop green growth initiatives to achieve GTP targets while reducing emissions Develop Climate resilience initiatives to reduce vulnerability and build resilience capacity 5 Livestock 6 Transport 7 Industry 7

9 More than 85% of greenhouse gas emissions in Ethiopia come from forestry and agriculture Share of GHG emissions, 2010 Total GHG emissions of ~150 Mt CO2e in 2010 Industry Buildings Transport 3% 3% Power 3% 3% 43% Livestock Forestry 37% 7% Agriculture Crops Source: CRGE 8

10 Ethiopia has shortlisted >60 green economy opportunities Power Buildings Forestry Soil Livestock Transport Industry Long list of potential green growth initiatives 150+ initiatives Prioritized measures for inclusion into strategy- >60 initiatives Feasibility in local context technological availability, technical and institutional implementability GTP effects potential to contribute to reaching targets as outlined in GTP Abatement potential GHG emissions reduction in case of implementation as compared to BAU Cost effectiveness costs to reduce one t of CO2e Source: CRGE 9

11 The example of fuel efficient stoves shows that green economy initiatives will foster growth Estimated effects of fuel efficient stove usage in 2015 Fuel efficient stoves help to achieve GTP targets in several dimensions GHG emissions Reduction from forest degradation, It would save USD 270 million, increasing rural household income by 10%. Creating an industry worth USD 15 million value add p.a. and employing 35,000 people + + Producing additional benefits by improving health and gender equality Source: CRGE strategy 10

12 and produce additional economic and social benefits Description Impact Increase health and safety Reduce indoor air pollution and severe health risks from smoke inhalation Toxic smoke and indoor air pollution causing more than 50,000 deaths p.a Empower women Enable education Decrease hours spent on gathering fuelwood (typically by women and children, often in risky areas) Increases participation in productive activities (e.g. stove production)/ Increase opportunities for education/decrease health risk and vulnerability Increase of available time for education by reducing the time of collecting and purchasing fuelwood Better nutrition increases learning capacities The investment plan includes programs to improve production, distribution, and financing, ideally via access to carbon credits. Source: WHO; GIZ; MoWE; team analysis 11

13 The strategy for a green economy is based on four pillars Mt CO 2 e abatement potential in 2030 Middle income country in 2025 Agriculture Improving crop and livestock practices Reduce deforestation by agricultural intensification and irrigation of degraded land Use loweremitting techniques Improve animal value chain Shift animal mix Mechanize draft Forestry Protecting and growing forests as carbon stocks Reduce demand for fuelwood via efficient stoves Increase sequestration by afforestation/reforestatio n, forest management and area closure Power Deploying renewable and clean power generation Build renewable power generation capacity and switch-off fossil fuel power generation Export renewable power to substitute for fossil fuel power generation abroad Industry, transport and buildings Using advanced technologies Improve industry energy efficiency Improve production processes Tighten fuel efficiency of cars Construct electric rail network Substitute fossil fuel by biofuels Improve waste management power Non-domestic abatement potential from power exports Climate resilient green economy strategy Source: CRGE 12

14 Part III: Financial Aspects 13

15 Financial Aspects for GGS Implementation US$: 150 Billion 1.Government budget- by mainstreaming the Green Economy initiatives into existing development programmes 2. Supported budget- Development partners 3. Credited Approach- International Carbon Finance Mechanism On going local/national and international initiatives 14

16 Financial Aspects for CRGE Implementation CRGE FACILITY-to pool to solicit financial supports from various development partners so as to efficiently use limited resources in a coordinated and synergistic way 15

17 Conclusion... Ethiopia started to brand itself as the global GREEN FRONT-RUNNER in developing climate resilient green economies Show Ethiopia s commitments to address adverse impacts of CC to the nations of the world Negotiations - H.E. PM. Meles Zenawi: Global leader of international climate change negotiations-walking the talk Lessons Ethiopia also shows other countries how green growth can be achieved Collaboration 3 aspects Ethiopia enables neigh-boring countries to achieve green development by providing cheap clean electricity As the country has already created the platform for collaboration through its CRGE strategy, it welcomes all supports from development partners and concerned stakeholders that promote the implementation of its CRGE strategy so as to act locally and promote low carbon growth 16

18 17

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