Ethiopia is preparing to shift towards market-based climate finance as its long-running forest partnership with Norway approaches a new phase beyond June 2026.

The Ministry of Finance convened the Joint Consultation Group under the Ethiopia–Norway Partnership on Forest and Climate Change to review progress under the 2024 agreement and discuss the future direction of the REDD+ Investment Program. The meeting was co-chaired by State Minister of Finance Semereta Sewasew and Norway’s ambassador to Ethiopia, Stian Christensen.

Semereta said climate change continues to pose a direct economic threat to Ethiopia, with repeated droughts and floods disrupting livelihoods, food security and national development. She reaffirmed the government’s commitment to the partnership, describing sustainable and participatory forest management as central to reducing deforestation while aligning conservation with local economic incentives.

The consultation reviewed Ethiopia’s progress in strengthening coordination across federal, regional and local institutions, supported by the Green Legacy Initiative. Ethiopia’s selection to host COP32 in 2027 was cited as recognition of these efforts.

Norway has supported Ethiopia’s forest and climate programme since 2013, providing not only financing but also institutional and technical assistance. This support has helped establish carbon accounting, safeguards and Measurement, Reporting and Verification systems that underpin results-based forest finance.

Officials said carbon credit transactions under the partnership are nearing finalisation, signalling Ethiopia’s growing readiness to participate in market-linked climate financing mechanisms.

Christensen welcomed Ethiopia’s progress, saying Norway remains committed to supporting results-based payments that link finance to verified emissions reductions and promote long-term accountability.

Dyveke Rogan, deputy director of Norway’s International Climate and Forest Initiative, said the next phase of cooperation, REDD+ Investment Program III, will run from 2026 to 2030 under a blended financing structure. The programme is expected to draw on 60 million US dollars from Norway, 40 million US dollars from Ethiopia’s Green Legacy Initiative Special Fund and additional resources carried forward from earlier phases.

The upcoming programme aims to deepen participatory forest management, strengthen coordination among institutions, accelerate land restoration and mobilise private sector investment into Ethiopia’s forest and climate finance framework.

Semereta said Norway’s sustained engagement has been instrumental in positioning Ethiopia as a credible participant in results-oriented forest finance, supporting community livelihoods while reinforcing long-term environmental and economic resilience.