Ethiopia and Norway are strengthening their long-standing collaboration on forest conservation and climate finance as both countries look beyond 2026 toward a more mature, market-linked phase of results-based forest financing. Senior officials from both governments convened in Addis Ababa under the Joint Consultation Group of the Ethiopia–Norway Partnership on Forest and Climate Change to review progress under the 2024 Partnership Agreement and define the future direction of Ethiopia’s REDD+ Investment Program.

The meeting was co-chaired by State Minister of Finance Semereta Sewasew and Norway’s Ambassador to Ethiopia, Stian Christensen. Discussions focused on how Ethiopia can continue to translate forest protection into measurable climate, economic, and social outcomes as climate risks intensify across the country.

Climate Pressure and the Case for Forest-Led Resilience

State Minister Semereta Sewasew underscored that climate change is no longer a distant threat for Ethiopia. Recurrent droughts and floods are already disrupting livelihoods, undermining food security, and weighing on economic stability. Against this backdrop, forests are increasingly viewed as strategic assets rather than environmental side projects.

She emphasized Ethiopia’s commitment to sustainable and participatory forest management, highlighting the role of local communities in forest stewardship. By linking conservation outcomes with economic incentives, the government aims to reduce deforestation pressures, strengthen social cohesion, and protect long-term forest productivity. This approach, she noted, is central to ensuring that climate action delivers tangible benefits for rural communities while supporting national development goals.

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Green Legacy and International Recognition

The consultation also recognized the role of Prime Minister Abiy Ahmed’s Green Legacy Initiative in elevating forest restoration to a national priority. The initiative has improved coordination across federal, regional, and local institutions and contributed to Ethiopia’s growing international profile on climate and nature issues. Ethiopia’s selection as host of COP32 in 2027 was cited as a reflection of this strengthened leadership and institutional coherence.

Norway’s Role in Building Credible Climate Finance Systems

Norway’s contribution to Ethiopia’s forest and climate architecture was repeatedly highlighted as foundational. According to State Minister Semereta, Norway has supported Ethiopia’s REDD+ framework since 2013, going well beyond direct financial support. Norwegian assistance has focused on building institutional, technical, and fiduciary capacity across agencies responsible for forest management, land administration, climate policy, and environmental protection.

This long-term engagement has helped Ethiopia strengthen Measurement, Reporting, and Verification systems, safeguards, and carbon accounting frameworks. As a result, Ethiopia is now approaching a stage where forest protection efforts can be translated into results-oriented climate finance that meets international credibility standards.

State Minister Semereta noted that carbon credit transactions under the partnership are nearing completion. Their finalization would mark a significant milestone, signaling Ethiopia’s readiness to engage more fully with market-linked forest climate finance and to attract a broader range of public and private capital.

Results-Based Payments and Shared Accountability

Ambassador Stian Christensen reaffirmed Norway’s commitment to supporting Ethiopia’s transition toward results-based payments. He emphasized that this approach rewards verified outcomes rather than inputs, reinforcing accountability while encouraging long-term sustainability. In Norway’s view, Ethiopia’s strong ownership of the program and progress to date provide a solid foundation for scaling this model in the coming years.

Forests remain central to Ethiopia’s economic and environmental resilience. Well-managed forest landscapes help stabilize water systems, reduce land degradation, support agricultural productivity, and improve resilience to climate shocks. Ensuring that these benefits are equitably shared through participatory management is seen as critical to maintaining political and social support for forest protection.

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The Next Phase of REDD+ Investment

Looking ahead, Dyveke Rogan, Deputy Director of Norway’s International Climate and Forest Initiative, outlined plans for the third phase of Ethiopia’s REDD+ Investment Program covering 2026 to 2030. The next phase will adopt a blended financing model, combining USD 60 million in Norwegian support, USD 40 million from Ethiopia’s Green Legacy Initiative Special Fund, and additional carried-over resources.

The program is expected to deepen participatory forest management, strengthen institutional coordination, accelerate land restoration, and further develop Ethiopia’s capacity for results-oriented forest finance. A key objective is to mobilize greater private sector investment, building on the credibility of Ethiopia’s monitoring and governance systems.

Positioning Ethiopia for Market-Linked Climate Finance

In closing, State Minister Semereta Sewasew expressed appreciation for Norway’s sustained partnership and innovative financing approach. She emphasized that Norway’s support has been instrumental in positioning Ethiopia as a credible actor in forest climate finance, capable of empowering communities while delivering measurable environmental and economic outcomes.

As Ethiopia prepares for the next phase of its REDD+ program, the partnership with Norway illustrates how long-term capacity building, institutional reform, and blended finance can move forest conservation from donor-driven programs toward durable, market-linked climate solutions.

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