Ethiopia’s CRGE strategy: Nationally determined Climate Change Mitigation in Action
by H.E. Mr. Kare Chawicha, Ethiopian State Minister of Environment, Ministry of Environment and Forests
Ethiopia is among the fastest growing economies in the world, targeting to reach middle income status by 2025. To achieve this ambitious goal in a sustainable manner, Ethiopia has launched its Climate Resilient Green Economy Strategy (CRGE) at COP 17, Durban. Through the implementation of the CRGE strategy, Ethiopia has put itself as a front-runner towards nationally determined contributions as it targets to reach its growth targets in a carbon neutral way.
Railway transport – A key pillar of Ethiopia’s Green Growth Strategy
A key pillar for Ethiopia to reach its ambitious growth targets in a sustainable manner is the implementation of railway, which will enhance Ethiopia’s regional economic integration as well as the access to seaports, crucial for a land-locked country.
Building railroads of ~ 5,000 km by 2020 lays the basis for low carbon transport in Ethiopia as railroads will be purely powered by hydropower while significantly reducing the need for fossil fuel based road transport. This will lead to economic integration and vast reduction of GHG. In addition it reduces imports of fossil fuels, a major source of outflow of foreign exchange.
The development and implementation of the National Railway Network and Light Rail Transit and supported projects (Transit Oriented Development) will result in significant GHG emission reductions of 9 Mt CO2e/year by 2030.
How can climate finance support railway development?
The implementation of Ethiopia’s railway network results in a significant financial commitment amounting to billions of dollars.
Climate Finance plays a key role in the implementation of Ethiopia’s Green Economy – Climate finance can support railway development through:
Improving operational performance through carbon market revenues
Funding of supportive measures and investments (e.g. Transit Oriented Development – TOD)
Refinancing and financing of railway lines through concessional loans and climate bonds.
Ethiopia has implemented the CRGE Facility, which mobilizes climate finance from external sources while blending external finance with national contributions to leverage private finance.
Ethiopia is committed and ready to develop a Climate Resilient Green Economy – are you ready to partner with us?