Ethiopia, Norway Sign Grant Agreement of 25 Mil USD For REDD+ Investment Program

Addis Ababa, October 10/2023 (ENA)- A grant agreement of about 25 million USD was signed between Ethiopia and Norway for the second phase of the REDD+ Investment Program. 

“REDD+ Investment Program Phase II” is believed to contribute to Ethiopia’s nationally determined contribution (NDC) targets of emission reduction, increased forest cover, and increased GDP.

Ethiopia’s State Minister of Finance, Semereta Sewasew and Ambassador of Norway to Ethiopia, Stian Christensen signed the agreement in Addis Addis Ababa. 

The signed program is a second phase and a continuation of the REDD+ Investment Program which has been financed by the Government of Norway and under implementation since 2017.

The Program aims to address the drivers of deforestation and forest degradation effectively through on-the-ground targeted interventions, re-enforced by the establishment of the appropriate policy environment, legal frameworks, institutional arrangements and capacity building. 

Ethiopia has been implementing a grand forestation program under its Green Legacy Initiative with a view to fight the challenges of climate change, ensure food self-sufficiency and expedite green economy. 

The nation has planted more than 25 billion seedlings in the first phase of the Green Legacy Initiative that was carried out from  2019 to 2022. 

The nation has also planned to plant another 25 billion seedlings in the second phase which was launched in the rainy season of 2023.

Ethiopia can earn 500 million USD every year from carbon trading through the Green Legacy Initiative. 

Carbon trading is a market-based system in which developed countries pay developing countries that develop forestry to absorb carbon and engage in development practices that reduce specific amounts of carbon.