Ethiopia has taken a decisive step in its climate agenda by extending its ban on fuel-powered vehicles to include trucks, a move expected to reshape the nation’s transport and logistics landscape. 

Prime Minister Abiy Ahmed (PhD) announced the decision on Thursday, during the inauguration of a new refinery and fertilizer complex in Gode, Somali Regional State.

The country began its transition away from gasoline and diesel vehicles in 2024, when passenger cars were prohibited under the Climate-Resilient Green Economy initiative, which aims for carbon-neutral growth by 2030. The policy includes tax incentives for electric vehicles and investment in charging infrastructure, encouraging both imports and local assembly of electric buses and cars.

Ethiopia generates more than 90% of its electricity from renewable sources, primarily hydropower, giving the country a unique opportunity to power a growing electric vehicle fleet sustainably. However, adoption remains uneven. Urban centres like Addis Ababa have better access to charging stations, while rural areas and long-haul logistics routes face gaps in infrastructure.