Climate change mitigation, adaptation, and climate finance were on the agenda when EfD Ethiopia researchers met with a technical team from the International Monetary Fund (IMF) at the Ethiopian Ministry of Finance (MoF) in April. The discussion was part of a comprehensive Climate Policy Diagnostic to identify pathways for resilience and sustainability amid increasing climate risks. EfD Ethiopia contributed evidence-based insights grounded in global research and extensive engagement with national policy processes.
The meeting covered a wide range of critical topics shaping Ethiopia’s climate agenda. Discussions on mitigation emphasized afforestation and broader environmental restoration initiatives. Energy transition was a central theme, spanning electricity generation, access disparities, clean cooking solutions, and the emerging shift toward electric mobility.
Structural challenges
"We´re happy to be asked to contribute our expertise in this high-level context. We talked about our research in those areas, and the advantages of being a part of a global network of researchers," says Selamawit Gegziabher.
The EfD researchers highlighted structural challenges, including the gap between electricity production and distribution, and persistent inequalities in access between urban and rural areas. While progress in electric cooking (e-cooking) was acknowledged, barriers such as affordability, awareness, and cultural preferences still limit adoption.
"Addressing these constraints will require integrated, system-wide interventions, particularly through strengthened agricultural value chains, improved livelihoods, and expanded investments in off-grid infrastructure in rural settings," notes Selamawit Gegziabher.
Better coordination is needed
"We underscored the country’s strong policy track record in climate action. Despite maintaining relatively low greenhouse gas emissions, Ethiopia has demonstrated global leadership through proactive engagement in both mitigation and adaptation," says Selamawit Gegziabher and mentions frameworks such as the Climate Resilient Green Economy Strategy (CREG) and ambitious emission reduction targets.
"The recently ratified Carbon Market Proclamation was also recognized as a significant step toward leveraging market-based climate finance mechanisms."
However, the dialogue identified a critical need to strengthen policy coherence, coordination, and alignment across institutions to reduce duplication and enhance implementation efficiency.
Vulnerable households must be better protected
Evidence shared during the meeting highlighted the vulnerability of rural households and smallholder farmers to climate shocks, including droughts, erratic rainfall, floods, and landslides. Although institutional structures for disaster risk management exist, participants emphasized the need for enhanced technical capacity, particularly in early warning systems, data infrastructure, and timely information dissemination. Strengthening these systems is essential to reducing climate-induced risks and safeguarding livelihoods.
Committed to continued collaboration
Additional areas of discussion included afforestation, agricultural insurance, engaging private sectors as partners, and the importance of integrating cost-effectiveness analysis into climate policy design and evaluation. The value of co-creation, as well as stronger vertical and horizontal policy alignment, was also emphasized.
The meeting concluded with a shared commitment to continued collaboration, including the exchange of evidence on priority topics and sustained engagement to support Ethiopia’s transition toward a resilient and sustainable future.
By: Petra Hansson and Selamawit Gegziabher