• Major Funding Boost: CIF commits $37M, unlocking $492M in co-financing from the African Development Bank and World Bank to protect ecosystems and rural livelihoods.
• Sustainability Focus: Plan targets 322,276 hectares of land for restoration and introduces income opportunities like carbon credits and sustainable non-timber products.
• Empowering Women: Women farmers gain access to climate-smart farming techniques, ecotourism ventures, and leadership roles in local decision-making.

The Climate Investment Funds (CIF) board has approved a $37 million investment plan to protect Ethiopia’s rural communities from climate-related shocks and safeguard its carbon-rich forests. With $492 million in co-financing—$253 million from the African Development Bank (AfDB) and World Bank—the plan aims to restore degraded landscapes and enhance livelihoods.

Key Goals:

• Restore 322,276 hectares of degraded ecosystems in Amhara, Oromia, South Ethiopia, and Somali regions.
• Develop a national forest registry to monitor and conserve Ethiopia’s forests, which store 10.1 billion tCO2eq.
• Reduce reliance on forests for timber and fuel by promoting non-timber forest products such as honey, coffee, spices, and bamboo.

“Nature-based solutions offer a double win, both for the climate and for communities who depend on agriculture and forestry,” said Tariye Gbadegesin, CEO of Climate Investment Funds. “By investing in sustainable livelihoods and farming practices, Ethiopia can reduce emissions and boost rural resilience.”

Supporting Communities and Women

The plan prioritizes community involvement, with $4 million channeled through CIF’s Dedicated Grant Mechanism to fund local, community-led initiatives. Women farmers, vital to Ethiopia’s food production, will receive targeted support to adopt climate-smart farming techniques, engage in high-value activities like ecotourism, and establish women-led cooperatives.

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H.E. Dr. Girma Amente, Ethiopia’s Minister of Agriculture, expressed gratitude: “This investment plan underscores Ethiopia’s commitment to resilience through transformative nature-based solutions. It integrates local communities, government, and partners to drive sustainable change.”

Addressing Climate Challenges

Ethiopia’s economy relies heavily on its land, with over 70% of its population in rural areas dependent on agriculture. Yet, land degradation and climate shocks, such as droughts and floods, are jeopardizing livelihoods. Forests that produce 45% of Ethiopia’s coffee—its main export—are rapidly depleting, with 11 million hectares at risk of desertification.

Global Partnerships

The investment plan is funded under CIF’s $370M Nature, People, and Climate Investment Program (NPC), which focuses on land-use strategies that mitigate climate change and improve rural livelihoods in low-income countries. Key stakeholders, including multilateral banks and private sector partners, emphasize collaboration to ensure success.

Anthony Nyong, Director of Climate Change at the African Development Bank, said: “This plan strengthens sustainable landscape management, climate-smart agriculture, and resilient agribusinesses to ensure food security and restore ecosystems.”

Maryam Salim, Country Director at the World Bank, highlighted Ethiopia’s ambition: “This initiative complements one of Africa’s most ambitious landscape restoration programs, protecting forests and biodiversity while bolstering community resilience.”

A Path Forward

With CIF backing, Ethiopia is poised to restore vital ecosystems, empower rural communities, and mitigate climate challenges. The investment is a critical step toward ensuring sustainable development and resilience for one of Africa’s most populous nations.

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