Green economy strategies and implementation plan in developing countries the case of ethiopia
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Green economy strategies and implementation plan in developing countries: The case of Ethiopia. Alemu Mekonnen Department of Economics at Addis Ababa University and EfD Ethiopia at Ethiopian Development Research Institute Prepared for

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Green economy strategies and implementation plan in developing countries the case of ethiopia

Green economy strategies and implementation plan in developing countries: The case of Ethiopia

Alemu Mekonnen

Department of Economics at Addis Ababa University and EfD Ethiopia at Ethiopian Development Research Institute

Prepared for

Development Talks on “After Rio+20: Next steps towards inclusive green growth”, organized by Sida

17 September 2012, Stockholm


Introduction

Introduction

  • Ethiopia one of the three fastest growing economies in Africa recently (AfDB 2012)

  • Annual growth 11-14.9% until 2015 (Ethiopia’s Growth and Transformation Plan (GTP) 2010/11-2014/15)

  • => May not be sustainable if environmental and social issues not addressed


Ethiopia active on climate change

Ethiopia active on climate change

  • Involvement in global climate negotiations and committees

  • Plans/programs/documents at national level: 1st National Communications, NAPA, NAMA

  • Green economy (GE) strategy launched in 2011 - part of Climate Resilient Green Economy strategy


Ge strategy process

GE strategy process

  • Preparation of GE Strategy started in 2010; help from international & national consultants

  • Inter-ministerial committee provided guidance to a technical committee (7 sub-technical committees)

  • +20 government institutions represented, +50 experts

  • 7 sectors selected: power, buildings & cities, forestry, agric. /soil based emissions, livestock, transport & industry


Ge strategy process 2

GE strategy process (2)

  • 60 prioritized GE initiatives

  • Prioritization Criteria :

    • relevance, feasibility for local implementation;

    • contribution to reach targets of GTP;

    • abatement potential at reasonable cost for the respective sectors

    • Regional, sectoral consultations; Structure of permanent institutional setup


Ge strategy based on 4 pillars

GE strategy based on 4 pillars:

  • Improved crop and livestock production, and reduced emissions

  • Protect & re-establish forests

  • Expand electricity generation from renewables

  • Leapfrog to modern, energy-efficient technologies in transport, industry & buildings


The work done

The work done

  • Identification of current & projected GHG emissions under business as usual (BAU) scenarios until 2030,

  • Identification of drivers and abatement levers in the 7 sectors,

  • Estimation of mitigation costs, identification of financial needs and ways of financing these,

  • The way forward


Projections

Projections:

Sectoral shares (%)


Rapid increase in ghg emissions if nothing done

Rapid increase in GHG emissions - if nothing done


Sectoral distribution mt of co 2 e

Sectoral distribution (Mt of CO2e)


Costs and financing

Costs and financing

  • Abatement costs:

    • For over 80% of the abatement potential, less than 15 USD per t of CO2e

    • Total cost of building a green economy during 2010-2030 =150 billion USD

  • Some of these costs could be financed through climate finance

  • Funding sources: own initiatives, supported initiatives, market-based initiatives


Co benefits of strategy

Co-benefits of strategy:

  • Public health: reduced indoor and outdoor air pollution; improved water quality

  • Rural development: improved soil fertility, food security

  • Reduced reliance on imported fossil fuels


Implementation plan

Implementation plan

  • Overall responsibility given to Ethiopia’s Environmental Council

  • Govern CRGE initiative under co-responsibility of EPA and Min. of Finance and Econ. Devt.

    • Use existing institutions whenever possible

    • Stakeholder consultation key to awareness creation, feedback & proper implementation


Next steps

Next steps

  • Include GE strategy in sectoral development plans

  • Identify and select priority initiatives

  • Prepare implementation, resource, and investment plans


4 initiatives selected for fast track implementation

4 initiatives selected for fast-track implementation:

  • Exploit vast hydropower potential;

  • Promote improved rural cooking technologies;

  • Improve livestock value chain;

  • Reduce Emissions from Deforestation and forest Degradation (REDD).


Examples of actual projects being implemented

Examples of actual projects being implemented:

Grand renaissance dam on the Blue Nile - 6000 MW gen. capacity, mainly financed domestically (bonds, donations)


Green economy strategies and implementation plan in developing countries the case of ethiopia

Wind energy, pilot production through connection to the grid


Green economy strategies and implementation plan in developing countries the case of ethiopia

Humboafforestation/reforestation project: first CDM project in Ethiopia (covering 2,728 ha)


Some more examples

Some more examples

  • Construction of infrastructure for light rail network started in Addis Ababa

  • Derba cement factory (climate finance for cleaner technology)

  • Blending of ethanol with gasoline

  • Ethanol cook stoves to households


Concluding remarks

Concluding remarks

  • Adaptation to local context: countries need to prepare their own GE strategies; identify synergies and trade-off

  • Green investment/technologies important vehicles to build green economy

  • Public-private partnership opportunities

  • Political commitment important


Concluding remarks 2

Concluding remarks (2)

  • Government needs to create enabling environment (provide incentives + appropriate institutional arrangements)

  • North-South compensation on global env. problems (adaptation, mitigation etc. on principle of common but differentiated responsibilities)


Concluding remarks 3

Concluding remarks (3)

  • Need for research & learning

  • Costs and benefits of strategies and policies should be assessed

  • Capacity strengthening needed: human resources, financial


Comments are very welcome

Comments are very welcome

Thank you

E-mail:

[email protected]


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