1. Climate Finance for Railway Development in Ethiopia
Adriaan Korthuis
Kigali, 17 August 2015

2. Building electrified railways today, clean transport tomorrow
Reliable transport is a precondition to economic growth: a key pillar of the CRGE strategy
Close cooperation within government: MoFED, MEF, MoT, Addis Ababa City Administration
Railroads assure that economic growth remains independent from fossil fuel
Electric railways: domestic clean source of energy: hydro, wind and geothermal

3. The Ethiopian Railways Corporation is building railroads
ERC has been set up to implement and operate railways in Ethiopia
730 km track Addis – Djibouti to be commissioned in 2015
Phase I LRT Addis Ababa to be commissioned in 2015
By 2020: over 5000 km of track

4. Construction is on-going

5. Electrical railroads reduce 9 million t CO2e per year by 2030

6. ERC Climate Finance Strategy
Carbon credits
Direct payments for emission reductions
NAMA Framework
Non-market mechanisms
GCF
Supportive actions and recognition
Other opportunities
Innovative financing

7. Project agenda 1 - CDM Development of the LRT
Increase operational revenue of the LRT
Anticipating recovery of carbon markets in the mid and long term
Successful application to UNOPS

8. Project agenda 2 – Transit Oriented Development
Transit Oriented Development (TOD)
to increase ridership
to increase LRT revenue
Promotion of mixed-use of public, residential and commercial areas
NAMA design to develop TOD
Create institutional framework
Carry out one pilot
Prepare implementation plan for 10 stations
Set up a structured debt fund to enhance private sector investment
Proposals to NAMA Facility and GCF

9. Institutional set-up for GCF Application: Ethiopia’s CRGE Facility
Climate Resilient Green Economy
Middle income status by 2025 while retaining emissions
Basis of policy making
CRGE Facility
Climate Facility for Ethiopia
Board by six ministries
Managed by Ministry of Finance and Economic Development
Technical coordination by Ministry of Environment and Forest
Application for Accredited Entity at the GCF
Sectoral programmes per ministry
Sectoral Programme Ministry of Transport
TOD
2nd phase Light Rail
Bus Rapid Transit BRT
Bicycle infrastructure
Cleaner transport

10. Project agenda 3 – MRV Master Plan
Carbon credits from National Railways: develop methodology
MRV of supportive measures
Link to national and international reporting

11. Project agenda Further projects
Registered at UNFCCC:
Railway NAMA for recognition
Railway academy NAMA
Climate vulnerability NAMA

12. Conclusion
Building railroads is a key pillar of the CRGE transport strategy
Ethiopia is undertaking two ambitious projects to make this happen: the National Railway Development Plan and the Addis Ababa Light Rail Transit project.
Transport by rail avoids emissions of greenhouse gasses by 9 million t CO2e /y. Transport by rail boosts green growth.
Large scale climate finance is essential to sustain and scale-up railway development
A mixed package of climate finance is looked for, relying both on carbon credits and on donor support.
Close coordination within government through the CRGE Facility

13. Contact details Adriaan Korthuis a.korthuis@climatefocus.com
17 September 2018