Working Paper 5 : Financing Ethiopia's Green Transition

Working Paper 5 : Financing Ethiopia's Green Transition
February 18, 2025
Ethiopia is navigating complex challenges in the areas of green finance and green energy. Like all countries, Ethiopia has been adversely impacted by the global climate crisis, which is jeopardizing its development path. In 2022, the country ranked 155 out of 187 countries in the global index for climate vulnerability. Coupled with rapid population growth, deforestation, and soil degradation, the country’s environmental sustainability and socio-economic progress have been impacted with pronounced negative effects on GDP and welfare. Ethiopia has been active in mobilizing finance to address some of these shocks.