Ethiopia: Climate Policy Diagnostic

Ethiopia requested technical assistance to the IMF on climate policy. This is a summary of the technical assistance report and the recommendations provided to the authorities. The report includes suggestions to improve adaptation and resilience to climate-related events such as droughts and floods, with an emphasis on reforms on land and integrated water resource management, disaster risk management and financing, and adaptive social protection. Additionally, the report proposes reform options to price energy more efficiently and improve the resilience of the electricity sector. Lastly, the report offers recommendations for managing climate-related financial risks, mobilizing climate finance, and integrating climate action into the policy-making processes both at the central and subnational government levels.