Ethiopia’s Green Legacy Fund Sets Model for Global Restoration Financing – WRI

Addis Ababa, May 31, 2025 (FMC) — Ethiopia’s newly established Green Legacy and Landscape Restoration Special Fund is setting a precedent in public financing for environmental restoration, according to the World Resources Institute (WRI).

The fund, which allocates between 0.5% and 1% of Ethiopia’s annual federal budget — equivalent to approximately $40 to $80 million — is aimed at restoring degraded landscapes across the country. The House of Peoples’ Representatives approved the fund on December 24, 2024, making Ethiopia one of the first countries to institutionalize national budget allocations for large-scale restoration.

In a recent article, WRI described the initiative as “a powerful example for other countries,” commending Ethiopia’s leadership in sustainable restoration financing. The fund is a key component of the broader Green Legacy Initiative (GLI), a national campaign launched in 2019 to combat environmental degradation and build climate resilience.

Previously, restoration efforts under the GLI were financed through general federal and regional budgets without a dedicated mechanism. The creation of a stand-alone fund is expected to ensure the long-term sustainability of Ethiopia’s landscape restoration programs while opening the door to additional investment from regional governments, international development partners, civil society, and the private sector.

“The institutionalization of this special fund marks a significant shift,” WRI noted, adding that Ethiopia is demonstrating how stable public financing can drive long-term environmental restoration in climate-vulnerable regions.

The article emphasized that Ethiopia’s model could accelerate land restoration efforts across Africa by enhancing cooperation and unlocking broader climate resilience benefits.

Beyond reforestation, the GLI addresses food security, water availability, air quality, and job creation. Since its launch, Ethiopia has planted over 40 billion seedlings nationwide. In 2019 alone, the country reportedly planted 350 million trees in a single day — a feat believed to set an unofficial global record. For 2025, the government plans to plant 7.5 billion seedlings.

The GLI has also delivered major social and economic dividends. More than 767,000 jobs have been created across sectors such as nursery management, agroforestry, seedling production, and sustainable land management — many of them held by women and youth.

Ethiopia’s leadership in restoration financing is now seen as a model for other developing countries seeking to meet climate goals through homegrown, sustainable solutions.