4a Will Ethiopia’s Green Strategy result in Socially Equitable Outcomes by Mulugeta Mengist Ayalew-ETHIOPIA

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Mr. Mulugeta Mengist Ayalew (Associate Advisor, Office of the Prime Minister, Ethiopia), presented on Will Ethiopia’s Green Strategy result in Socially Equitable Outcomes?. Presentation delivered at the OECD ENVIRONET EXPERT WORKSHOP: GREEN GROWTH, DEVELOPMENT PLANNING AND POLICY; as part of the 16th ENVIRONET meeting in Paris.

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4a Will Ethiopia’s Green Strategy result in Socially Equitable Outcomes by Mulugeta Mengist Ayalew-ETHIOPIA

  1. 1. Will Ethiopia’s green strategy result in socially equitable outcomes? Mulugeta Mengist Ayalew (PhD), Associate Adviser, Office of the Prime Minister
  2. 2. Outline • Ethiopia’s green economy strategy? • Is it a fair burden on Ethiopia? • Is it a fair burden on the poor and the most vulnerable in Ethiopia?
  3. 3. Green Economy Strategy • Vision, Baseline, Projection • Identification and Prioritization of Initiatives • State of Implementation –Climate resilience strategies –Power + Transport –Energy Law –CRGE Facility –Ministry of Environment and Forestry
  4. 4. • Asymmetry between impact and responsibility –Impact on and contribution of Ethiopia • Capacity to contribute to the solution • The principle of Common but Differentiated Responsibilities (and Respective Capabilities) 4 Is it a fair burden on Ethiopia?
  5. 5. • Why should Ethiopia care about green economy? – Better chance of achieving its development goals • BAU unsustainable • BAU expensive vs climate finance • Fossil fuels and impacts on economy • Leapfrogging • Health benefits – Responsible member of the international community 5 Is it a fair burden on Ethiopia?
  6. 6. • Asymmetry of impacts and contributions to climate change – Nationally and internationally • Equity in national terms? Who is the ultimate cost bearer? Does it help in poverty eradication? 6 Is it a fair burden on the poor and the most vulnerable?
  7. 7. • Prioritization of initiatives – Technical and institutional feasibility – Abatement potential – Cost-effectiveness – Contribution to GTP • Impact on poverty reduction • Food security • Increase in real GDP • Increase in domestic capital formation • Increase in exports • Benefits to public finance 7 Is it a fair burden on the poor and the most vulnerable?
  8. 8. • Why focus on abatement potential? • A look at pillars of the green economy strategy (see next slide) 8 Is it a fair burden on the poor and the most vulnerable?
  9. 9. 9 Is it a fair burden on the poor and the most vulnerable? 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 ▪ Reduce demand for fuel wood via efficient stoves ▪ Increase seques- tration by affores- tation/reforestation and forest management Power – Deploying renewable and clean power generation ▪ Build renewable 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 CRGE Strategy
  10. 10. • What next? – Sectoral investment plans • Equity issues need to be incorporated – Integration with GTP – Development of concrete projects 10 Is it a fair burden on the poor and the most vulnerable?
  11. 11. • The role of the sub-technical committees in the development of the green strategy • Sectoral Reduction Mechanism • The need to build broader coalition 11 Green economy planning as a learning exercise
  12. 12. Thank you

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