FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ENVIRONMENTAL PROTECTION AUTHORITY Ethiopia’s Climate Resilient Green Economy Ethiopia wants to reach middle income status before 2025 ENVIRONMENTAL PROTECTION AUTHORITY GDP, billion USD Agriculture Industry Services 147 ~10% p.a. 29% Key transitions ▪ Diminishing weight of agriculture from 42% to 29% of GDP ▪ Migration from agriculture jobs to services and industry ▪ Reaching of middleincome status before 2025 32% 51 30 39% 2010 2015 GTP 2025 projected Population mln (mid-year) 79 89 116 GDP/cap. In USD 378 565 1.271 Source: GoE GTP; EDRI 1 ENVIRONMENTAL PROTECTION AUTHORITY Why……? •Ethiopia will see further warming in all seasons of between 0.7°C and 2.3°C by the 2020s and of between 1.4°C and 2.9°C by the 2050s. This warming will be associated with heat waves and higher evapo-transpiration. •More regular heavy rainfall events are expected and this is likely to result in increased flooding. •Recent studies indicate, unless steps to build resilience are effective, climate change will reduce Ethiopia’s GDP growth by between 0.5 and 2.5% each year. Why ENVIRONMENTAL PROTECTION AUTHORITY Justifications for developing a green economy : ▪ natural resource assets ▪ global carbon finance ▪ co-benefits (for health, wellbeing, economic growth and natural resource conservation) ▪ Ethiopia is well positioned to become a regional and global leader in low carbon growth which will have a legacy and commercial benefit long into the future. ▪ huge low carbon potential – (ex: rich in forests, hydro, solar, wind & geothermal energy 3 If a typical development path were followed, emissions would increase from 150 Mt to 400 Mt (2010 to 2030) BAU emissions development Mt CO2e per year CAGR1 Percent Drivers and rationale ▪ 185 Agriculture 4.4% 1.8 90 5 40 Forestry Power Transport 2.6% 11.2% species (doubling from 2010-30) Soil: Increase in cultivated land (crops production) and synthetic fertilizer ▪ Average growth of cropland (estimated to reach ▪ +167% 75 t CO2e/capita ▪ Livestock: Increase in cattle population and other 3.0 400 150 ENVIRONMENTAL PROTECTION AUTHORITY 3.9% per year) Increase in population leading to higher fuelwood consumption ▪ Switch of remaining fossil fuel capacity to 100% clean/renewable generation for on-grid (2014) ▪ Increase in passenger-km traveled projected ▪ based on elasticity to real GDP Increase in ton-km of cargo transported based on elasticity to real GDP ▪ Cement production (steep increase in GTP, 55 5 70 5 5 5 2010 10 2030 – BAU Industry Buildings 15.7% ▪ 3.9% thereafter approach to MIC-level) Establishment and scale-up of industries in textile, steel, fertilizer, mining and others ▪ Buildings and solid/liquid waste emissions 1 Compound average growth rate 5 Developing a green economy combines economic development and abatement ENVIRONMENTAL PROTECTION AUTHORITY Focus CRGE Combining economic growth with low GHG emissions, e.g. ▪ ▪ Sustainable land use via efficient agriculture Sequestration in forests ▪ Expansion of renewable energy ▪ Resource efficient advanced technologies Green Economy Development Green Economy Abatement Resilience Green economy can help to avoid lock-in in old technology, unsustainable growth and land use Source: CRGE 6 The strategy for a green economy is based on four pillars ENVIRONMENTAL PROTECTION AUTHORITY Middle income country in 2025 Agriculture – Improving crop and livestock practices ▪ Reduce defores- ▪ ▪ ▪ ▪ tation by agricultural intensification and irrigation of degraded land Use lower-emitting techniques Improve animal value chain Shift animal mix Mechanize draft power Forestry – Protecting and growing forests as carbon stocks Power – Deploying renewable and clean power generation ▪ Reduce demand ▪ Build renewable ▪ for fuelwood via efficient stoves Increase sequestration by afforestation/reforestation and forest management ▪ power generation capacity and switch-off fossil fuel power generation Export renewable power to substitute for fossil fuel power generation abroad Industry, transport and buildings – Using advanced technologies ▪ Improve industry energy efficiency ▪ Improve production processes ▪ Tighten fuel efficiency of cars ▪ Construct electric rail network ▪ Substitute fossil fuel by biofuels ▪ Improve waste management Green economy strategy Source: CRGE 7 The CRGE outlines how Ethiopia will reduce 255 mtCO2 per year while ensuring economic growth Emissions per year1, Mt CO2e t CO2e/capita ENVIRONMENTAL PROTECTION AUTHORITY Agriculture Power Industry Forestry Transport Others 400 90 185 -64% 130 150 75 55 5 5 5 5 400 90 40 10 5 20 5 145 70 10 2010 2030 BAU 1.8 3.0 AgriForestry Transculture port Industry Buildings Green Economy 2030 Additional abatement potential of ~19 Mt CO2e from exporting green power to regional markets 1.1 1 Rounded numbers 2 Currently estimated emissions form buildings and waste 8 Challenges ENVIRONMENTAL PROTECTION AUTHORITY •MRV – of the activities outlined under the CRGE •MRV of financing the CRGE activities • Setting baselines for reducing emissions and vulnerability reductions 9 ENVIRONMENTAL PROTECTION AUTHORITY Thank you 10