Addis Ababa, March 28, 2025 (FMC) – A workshop set to realize Ethiopia’s green capital market through green bonds and carbon credits was held today.
Ethiopian Capital Market Authority Deputy Director-General, Esayas Kassa, said on the occasion that the workshop makes a pivotal step in the journey towards establishing Ethiopian Green Capital Market, particularly through the development of green bonds and carbon credits.
“We are deeply grateful for the ongoing technical expertise, policy engagement, and resource mobilization from our partners,” he added.
According to a study presented at the workshop, climate change currently costs Ethiopia 1.5 percent of its GDP, a figure projected to rise to 5 percent by 2040.
Despite these challenges, the country has a significant opportunity to leverage green finance, the deputy director-general stated.
The country has successfully mobilized billions of Birr in climate financing and has set an ambitious target to reduce greenhouse gas emissions by 68.8 percent by 2030.
Esayas pointed out that achieving this requires substantial investment, and the scoping study identifies promising green finance instruments.
On her part, FSD Ethiopia CEO Hikmet Abdella underscored the urgency and potential of the initiative.
Ethiopia’s economy, deeply reliant on agriculture, is highly vulnerable to climate risks. Yet in every challenge, there is an opportunity to grow, the CEO said.
Hikmet further noted that Ethiopia’s climate resilient Green Economy Initiative and the Green Legacy Program demonstrate the country’s commitment to sustainable growth.
“To achieve our ambition of reducing emission by 68.8 percent by 2030, we need at least 316 billion USD. (Therefore) green financial instruments like green bonds and carbon credits are not just options. They are imperatives.”
The scoping study, commissioned by the market authority with support from FSD Ethiopia, FSD Africa, and UNDP, and conducted by Genesis Analytics, has “confirmed the viability of green bonds and carbon credits for immediate implementation in Ethiopia,” the CEO noted.
The workshop is a collaborative effort to translate vision into action and aims to build the framework, skills, and partnerships necessary to make Ethiopia’s Green Capital Market a reality.