Building resilience in Ethiopia: climate-resilient development planning and budgeting

January 2021 - October 2022

IIED is supporting Ethiopia’s Climate Resilient Green Economy (CRGE) Facility to track spending on climate adaptation, institutionalise local climate-resilient development planning, and enhance the coordination with other institutions to access and manage climate finance.

Groups of people and cattle taking and drinking water from a well

Qacha Chalu water point in East Shoa Zone, central Ethiopia (Photo: UNICEF Ethiopia via FlickrCC BY-NC-ND 2.0)

Ethiopia is one of sub-Saharan Africa’s fastest growing economies but remains highly exposed to climate change impacts, which vary significantly across its many regions and environmental zones. 

Impacts include droughts, unpredictable rainfall, increased temperatures and greater risk of livestock and crop diseases, all of which have the potential to undermine livelihoods and worsen existing tensions between communities. However, as one of the least developed countries (LDCs), Ethiopia has historically recorded low carbon emissions, and has done little to contribute to global heating.

The Climate Resilient Green Economy (CRGE) initiative is an ambitious Ethiopian strategy to guide the country towards becoming a climate-resilient, middle-income economy by 2025.

The CRGE Facility was established under the Ministry of Finance and Economic Cooperation to mobilise and coordinate finance for the delivery and implementation of the strategy, and is responsible for accessing and managing climate finance, including Ethiopia’s US$45m Green Climate Fund programme to rehabilitate degraded forests and enhance water access.

Established in 2011, the CRGE Facility is one of the world’s first institutions set up to coordinate climate finance delivery in this manner. Ten years after its establishment, it aims to consolidate and enhance its capabilities and continue to improve development and resilience outcomes for marginalised citizens.

What is IIED doing?

The project is part of 'Building Resilience in Ethiopia', a larger programme funded by the UK's Foreign, Commonwealth and Development Office (FCDO) and USAID, and implemented by Oxford Policy Management. 

Under the instruction of the CRGE Facility and working in close collaboration with our partner in Addis Ababa, Echnoserve, IIED is supporting work across three areas:

  • Developing guidelines for climate adaptation budget tagging, enabling the Ministry of Finance and Economic Cooperation to track spending across sectors on climate adaptation
  • Working with regional and local government staff to develop guidelines for an integrated multi-sectoral and risk informed local development planning process to enhance community resilience to climate change, and
  • Reviewing and enhancing the ability of the CRGE Facility to mobilise and deploy climate finance, while efficiently delivering climate adaptation and mitigation projects. 


Assessing vulnerabilities to disaster displacement: a good practice review, Sam Barrett, Dave Steinbach, Simon Addison (2021), Working paper