MoPD Minister Fitsum Aseffa discusses Ethiopia’s path to climate resilience and green industrialization
Addis Ababa, March 1, 2025 (FMC) – Ethiopia is making commendable progress in addressing climate challenges through a combination of renewable energy solutions, sustainable water management, and green infrastructure projects, according to the country’s Minister of Planning and Development, Fitsum Aseffa.
Press Secretary of the Office of Prime Minister of Ethiopia Ms. Billene Seyoum recently sat down with the Minister of Planning and Development Ms. Fitsum Aseffa for the 10th and last episode of the “Ethiopia in Focus” limited series.
During the interview, Minister Fitsum emphasized that Ethiopia’s climate actions are driven by the country’s firm commitment to green industrialization and sustainability. She pointed out that nearly 100% of Ethiopia’s electricity is sourced from renewable energy, with hydroelectric power being the cornerstone of the country’s energy sector. The completion of the Grand Ethiopian Renaissance Dam (GERD), she noted, is a significant milestone in the nation’s efforts to become a regional leader in renewable energy.
Minister Fitsum highlighted that Ethiopia’s climate resilience efforts are not just aimed at protecting the environment but also at ensuring economic growth. “We are fully committed to green energy and industrialization,” she said, explaining that Ethiopia’s strategy focuses on achieving universal electrification, especially in rural areas.
She pointed out that, despite the country’s vast land cover and the scattered settlement patterns in rural regions, Ethiopia is striving for 100% electricity access for its population, a goal that is supported by projects in solar energy and wind energy, as well as innovative solutions like solar-powered smart irrigation.
The Minister also emphasized Ethiopia’s progress in water conservation and management. “Water is a critical resource, but we must ensure its sustainable use,” she indicated, noting the country’s comprehensive water management programs. Fitsum pointed to projects like the riverside initiatives in Addis Ababa, designed to protect rivers from pollution and communities from flooding, as key examples of Ethiopia’s proactive approach.
She further elaborated that Ethiopia’s 12 river basins, including the Nile, require robust protection strategies to ensure sustainable water use. “Our agriculture practices are evolving,” she said, referencing the introduction of water-saving technologies in irrigation. Despite challenges with unsustainable irrigation practices, Ethiopia is investing in modernizing its agriculture to ensure more efficient use of water resources.
In addition to renewable energy and water management, Ethiopia’s infrastructure projects also play a key role in climate action. Minister Fitsum described the government’s “corridor development” program, which focuses on making urban infrastructure more resilient to climate change by incorporating green spaces and sustainable transport solutions. “Land is a valuable economic resource,” she noted, pointing out that Ethiopia’s decision to dedicate land to public parks and green spaces is a bold step toward sustainable urban development, despite the opportunity cost involved.
She also highlighted that the country has made strides in greening its transport sector, most notably by becoming the first country to ban fuel-powered cars and offering tax incentives for the importation and local assembly of electric vehicles. “We are already seeing the impact of this policy,” she said, mentioning the growing presence of electric vehicles across Addis Ababa and other cities.
Ethiopia’s commitment to addressing climate change is supported by an evolving financing landscape. Minister Fitsum acknowledged the importance of securing global climate finance but expressed disappointment at the slow pace of international support. “Despite our contributions to global climate resilience, accessing climate finance has been a challenge,” she said, reflecting on the disappointment that many countries, including Ethiopia, feel over the lack of sufficient financial support following the Paris Agreement. She noted that while Ethiopia is ready to invest in climate-resilient projects, the country is seeking more accessible and affordable financing mechanisms. One option that Ethiopia is exploring is green bonds, which would provide financing for renewable energy, climate-smart infrastructure, and sustainable water projects. She also mentioned blended finance models, where funding from development partners is combined with private sector investments to de-risk climate projects.
To address the financial gap, the Minister pointed out that Ethiopia is also looking into smaller-scale climate finance solutions, such as microfinance for smallholder farmers. “Smallholder farmers are among the most vulnerable to climate change,” she said, noting that climate risks like floods and droughts have been increasingly frequent in recent years. As such, Ethiopia is working on insurance schemes to help farmers mitigate the financial impacts of these climate risks.
Despite the challenges in accessing global climate finance, Minister Fitsum expressed confidence in Ethiopia’s ability to balance its development and industrialization aspirations with its climate goals. She emphasized that being climate-smart can lead to economic growth, noting that a study commissioned by the government had shown that climate-smart development produces more benefits than business-as-usual approaches. “Our development plan is fully aligned with the goal of building climate resilience while pursuing sustainable economic growth,” she said. “We are proving that green growth and development can go hand in hand.”
Looking ahead, Minister Fitsum stressed the importance of addressing internal barriers to accessing climate finance. She noted that Ethiopia is working on creating the necessary legal frameworks for carbon trading, a key opportunity for the country given its significant potential for carbon sequestration through initiatives like the Green Legacy Initiative, which has led to the planting of billions of trees. “We are ready to tap into carbon markets,” she said, acknowledging the recent launch of a pilot carbon trading platform as an important step toward unlocking this financing avenue. Additionally, the country is improving its capacity to develop bankable climate projects that can attract international investments.
In conclusion, Minister Fitsum indicated that Ethiopia is committed to overcoming the financial and institutional barriers to climate action, with a focus on developing more sustainable and climate-resilient infrastructure. “We are positioning ourselves as a green economy,” she said, “and we are confident that our efforts will continue to drive Ethiopia’s development in a way that is both climate-conscious and economically prosperous.”