The Green Climate Fund approves solar water pumps in rural Ethiopia

The Green Climate Fund (GCF) approved USD 45 million in October 2024 for solar water pumping in Ethiopia. A consortium, supported by the International Climate Initiative (IKI), developed the funding proposal in collaboration with the Ethiopian Ministry of Finance.

Ethiopia faces severe climate challenges, including erratic rainfall, rising temperatures, and prolonged droughts, which affect agriculture, water security, and rural livelihoods. The project aims to build climate resilience in the Kobo-Girana Valley (Amhara) and Borena Zone (Oromia) by installing solar water pumps to provide sustainable water access for agriculture and drinking needs, reducing dependency on unreliable rainfall.

Access to modern agricultural services

Implemented by the Ministry of Irrigation and Lowlands, other ministries, regional authorities and local community-based organizations, the project will increase agricultural productivity and promote water-efficient practices. A community-led approach will ensure inclusivity and empower marginalized groups. Economic and social co-benefits include job creation, improved food security, and gender empowerment. 

The GCF approved the financial support within the project "Climate-resilient community access to safe water powered by renewable energy in drought-vulnerable regions of Ethiopia". Innovative financing of this 50 million USD project in total, including 90 % GCF grants, will enable smallholder farmers to access modern agricultural inputs and services. The Ethiopian Ministry of Finance will serve as the Direct Access Entity towards the GCF and will manage the funds. 

Climate Finance Innovators 

The Climate Finance Innovators (CFI) consortium was responsible for developing the GCF funding proposal together with the Ethiopian Ministry of Finance. Securing the GCF’s approval is a vital achievement for the CFI project, which provided technical support throughout all stages of the proposal, from concept note to approval by the GCF Board.

The consortium belongs to the IKI project “Linking Market Mechanisms and Climate Finance in Africa”. It aims to develop replicable climate financing models in Ethiopia, Senegal, and Uganda that are based on carbon market tools and activities. The project thereby establishes innovative linkages between UNFCCC market mechanisms and international climate financing institutions such as the GCF. Supported by IKI, CFI is a collaboration between Perspectives Climate Group, Climate Focus, AERA Group, Afrique Energie Environnement (AEE), Development Contours, and South South North.

More information on the GCF-Website.