Ethiopia has an ambitious objective to transform into a climate resilient green economy by 2025. This includes expanding renewable energy solutions to increase energy access and diversify the national energy mix and integrating climate change considerations into development planning and action.


Ethiopia is tapping $50 million from the SREP to help to cover upfront costs and risks of developing 75 MW of geothermal and 100 MW of wind power and to establish a renewable energy financing facility for small and medium-sized enterprises. It aims to increase the local population’s access to renewable energy technologies by creating a solid supplier base.

Ethiopia has also developed a strategic program for climate resilience under the PPCR. The result of extensive collaboration among government and other stakeholder groups, this strategy can serve as a roadmap for mainstreaming climate change across sectors and investing in priority areas, such as climate smart agriculture and infrastructure.


Biomass fuels account for nearly 90% of all energy consumed, and kerosene lights the homes of around two-third of all households


of the population is dependent on small-scale agriculture and resides in rural areas

Projects in Ethiopia

  Geothermal Sector Development Project (GSDP) FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 24.50 FUNDING (USD MILLION) 194.00 MDBIBRD  
  Geothermal Sector Strategy and Regulations FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 1.50 FUNDING (USD MILLION) 0.50 MDBIFC  
  Lighting Ethiopia / Clean Energy SMEs Capacity Building and Investment Facility FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 1.60 FUNDING (USD MILLION) 0.65 MDBIFC  


The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together, they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.