ADDIS ABEBA – European Union has signed a 36 million Euro budget support agreement with Ethiopia in a bid to help the east African country’s economy “grow greener” by reducing its greenhouse gas emissions.
The EU’s Commissioner for International Cooperation and Development, Neven Mimica, and Ethiopia’s minister of finance Ahmed shide signed the budget support document in Ethiopia’s capital today.
The bulk of the contribution, 33 million Euro (1 billion Birr), will be channeled through the government.
This budget support aims to reduce greenhouse gas (GHG) emissions from forestry and industry, according to the EU.
“Environmental sustainability and climate action are critical to achieving Ethiopia’s ambitious growth and development objectives,” Mimica said.
“The EU’s 36 million Euro (1.15.billion Birr) contribution will help two key sectors – forestry and industry – to become more sustainable and mitigate the consequences of climate change,” he added.
The additional 3 million Euro (96 million Birr) will enhance the country’s measurement, reporting, and verification systems, making them compliant with Paris Agreement standards.
Forestry and industry are the fastest-growing sources of GHG emissions. Yet they also have the highest potential for cutting emissions.
Ethiopia’s deforestation is responsible for 37 % of the country’s total emissions. European Union says its intervention in this sector will support the country in improving forest management and reducing deforestation.
For industry, the will focus on boosting energy efficiency, improving energy management and curbing fossil fuel use in cement manufacturing, as this sector will account for 18% of the country’s GHG emissions by 2030, unless remedial measures are taken, according to the EU.