Delegation of the European Union to Liberia

EU contributes 36 million Euro (1.15 billion Birr) to make Ethiopia's economy grow greener

22/07/2019 - 14:42

EU contributes 36 million Euro (1.15 billion Birr) to make Ethiopia's economy grow greener

(Addis Ababa, 22 July 2019) This EU contribution will support Ethiopia "grow greener" by reducing its greenhouse gas emissions.

Commissioner for International Cooperation and Development, Neven Mimica, said "Environmental sustainability and climate action are critical to achieving Ethiopia’s ambitious growth and development objectives. 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".

The bulk of the EU’s contribution, 33 million Euro (1 billion Birr), will be channelled through the Ethiopian government. This budget support aims to reduce greenhouse gas (GHG) emissions from forestry and industry. An 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 (GHG) emissions. EU intervention in this sector will support the country in improving forest management and reducing deforestation. For industry, the focus of EU support will be 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.


The EU’s development portfolio supports Ethiopia’s national strategy, above all in food security and agriculture, health, infrastructure (including energy, roads and climate change) and governance. In the field of climate change, the EU's current portfolio includes operations in adaptation for vulnerable populations, sustainable land management and renewable energy.

In recent years, the EU has heightened the focus on areas related to job creation, industrial and agro-industrial parks, export and trade promotion and private sector development.

The EU’s cooperation portfolio in the country is one of the largest in Africa and in the world (€715 million (22.8 billion Birr) for the 2014-2020 period). Ethiopia is also one of the main beneficiaries of the EU Emergency Trust Fund for Africa (€260 million (8.3 billion Birr) since 2015).

Additional support for Ethiopia is channelled through other EU initiatives, in particular the Instrument contributing to Stability and Peace, the Global Climate Change Alliance and the Instrument for Democracy and Human Rights.

For More Information

Delegation of the European Union to Ethiopia
Africa-Europe Alliance for sustainable investment and jobs
Progress factsheet – Africa-Europe Alliance for sustainable investment and jobs

Contact person

Solomon Kebede
Press and Information Officer
Phone: 0911 684 101


EU Delegation Ethiopia

Addis Ababa