Ethiopia, EU Sign € 36 mln Grant Agreement - ENA English
Ethiopia, EU Sign € 36 mln Grant Agreement
Addis Ababa ENA July22/2019 Ethiopia and the European Union have signed a financing agreement amounting to 36 million Euros (ETB 1.17 billion) for climate change budget supporting program.
The grant will support Ethiopia "grow greener" by reducing its greenhouse gas emissions.
The program also focuses on the mitigation of the impact of climate change and reduction of green house gas emission and livelihood assistance through directly supporting the government structures.
The main implementing organizations of this project will be the Environment, Forest and Climate Change Commission and the Ministry of Trade and Industry in collaboration with regional states.
Upon signing the agreement, Commissioner for International Cooperation and Development, Neven Mimica said "Environmental sustainability and climate action are critical to achieving Ethiopia’s ambitious growth and development objectives.”
“The EU’s 36 million Euro (1.15.billion Birr) contribution will help two key sectors – forestry and industry – to become more sustainable and mitigate the consequences of climate change," he added.
Accordingly, the bulk of the EU`s contribution, 33 million Euros will be channeled through the Ethiopian government. The budget support aims to reduce green house gas (GHG) emissions from forests and industry.
The additional 3 million Euros will enhance the country`s measurement, reporting and verification systems, making them complaint with Paris agreement standards, it was indicated.
Minister of Finance, Ahmed Shide, said the support is expected to leverage increased support for government climate change mitigation systems.
This project is aimed at supporting the effort of transforming the economic structure towards climate resilient green economy in the coming three years, he underscored.
EU intervention in this sector will support the country in improving forest management and reducing deforestation.
For industry, the focus of EU support will be on boosting energy efficiency, improving energy management and curbing fossil fuel use in cement manufacturing.
The EU’s development portfolio supports Ethiopia’s national strategy, above all in food security and agriculture, health, infrastructure (including energy, roads and climate change) and governance.
In the field of climate change, the EU's current portfolio includes operations in adaptation for vulnerable populations, sustainable land management and renewable energy.