ETHIOPIA: INDIVIDUAL CONSULTANCY FOR DEVELOPMENT OF A REVOLVING FUND GUIDELINES

Please note that the deadline is based on Korean Standard Time Zone (KST, UTC+9)

INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.

BACKGROUND

GGGI’s engagement in Ethiopia began in 2010, prior to its formal establishment as an international organization. Since then, it has played a pivotal role in supporting the Government of Ethiopia (GoE) to conceptualize, operationalize, and advance its Climate Resilient Green Economy (CRGE) Strategy. GGGI has provided embedded technical advisory services across key government ministries—including the Ministry of Finance (MoF), Ministry of Planning (MoP), Ministry of Agriculture (MoA), Ethiopian Development Research Institute (EDRI), and Ministry of Water and Energy (MoWE)—to ensure that CRGE principles are effectively mainstreamed into national planning and investment frameworks.

Notably, GGGI has been instrumental in the establishment and institutionalization of the CRGE Facility and has supported the successful mobilization of climate finance from major international sources, including the Green Climate Fund (GCF) and the Adaptation Fund (AF). It has also contributed technical leadership to the development and revision of key national policy instruments such as Ethiopia’s updated Nationally Determined Contributions (NDC), Long-Term Low Emission Development Strategy (LT-LEDS), National Adaptation Plan (NAP), and the national Monitoring, Reporting, and Verification (MRV) framework.

Between 2011 and 2019, GGGI led the technical coordination of Ethiopia’s CRGE implementation progress review, providing a foundation for data-informed climate action planning. More recently, GGGI launched its Ethiopia Country Planning Framework (CPF) for 2023–2027, which is fully aligned with the GoE’s climate priorities and strongly complements the objectives of international development partners, including the FCDO.

Key targets under the current GGGI Ethiopia CPF include:

Through its strong technical partnerships and commitment to green transformation, GGGI continues to serve as a key advisor and catalyst for climate-resilient development in Ethiopia.

PROJECT BACKGROUND

[REDD+ Investment Program Phase Two (RIP-II)]

The second phase of the REDD+ Investment Program (RIP-II) represents a strategic continuation and scale-up of interventions initiated under RIP-I. This three-year initiative builds on the positive lessons and successful practices from the first phase, with an enhanced focus on delivering systemic impact through innovation, inclusive governance, and results-based implementation. RIP-II is structured to accelerate progress toward Ethiopia’s climate and development targets, particularly its commitments under the updated Nationally Determined Contributions (NDCs), which include ambitious goals for greenhouse gas (GHG) emissions reduction, forest cover expansion, and GDP growth driven by green sectors.

To realize these overarching objectives, RIP-II is organized around four interrelated outcome areas:

The Global Green Growth Institute is one of three key Technical Advisory Partners (TAPs) supporting the implementation of RIP-II. Within its mandate under the program, GGGI is tasked with spearheading the design and development of a forest sector financing strategy. This strategy aims to mobilize sustainable financial resources to support a wide spectrum of forest sector priorities—including the protection and regeneration of existing forests, afforestation and reforestation programs, and the promotion of green enterprises and value-added forestry services. Through this assignment, GGGI will help enhance the financial architecture required to deliver lasting impacts in forest conservation, rural livelihoods, and climate resilience.

[Significance of Ethiopian forest sector]

Forests hold a pivotal place in Ethiopia’s socio-economic and ecological landscape. Accounting for an estimated 4% of national GDP, the forest sector supports the livelihoods of millions, particularly in rural regions where employment options are limited. Through income-generating activities such as the harvesting of non-timber forest products and ecotourism ventures, forests contribute to household incomes and local development. This underscores the urgent need for well-financed and sustainable forest management practices to safeguard and expand this economic contribution.

Ecologically, forests serve as critical ecosystems that preserve biodiversity and ensure environmental stability. They provide habitat for a wide range of flora and fauna, many of which are endemic to Ethiopia. Forests are essential in maintaining soil health, stabilizing hydrological cycles, and mitigating erosion—all of which are indispensable in a country whose economy heavily depends on agriculture. By acting as natural sponges that regulate water flow and improve groundwater recharge, forests play a direct role in sustaining agriculture and ensuring the provision of clean water for domestic and productive uses.

From a climate policy perspective, forests are one of Ethiopia’s most strategic assets. As reflected in the country's updated Nationally Determined Contributions (NDC), forest-based solutions are central to meeting emission reduction targets. Ethiopia aims to restore five million hectares of degraded landscapes and reforest an additional three million hectares by 2030. These efforts are not only vital for carbon sequestration but also for reducing dependency on unsustainable biomass fuel and promoting alternative energy sources that lower emissions from forest degradation and land-use change.

In terms of climate adaptation, forests offer a buffer against the impacts of climate variability. They help regulate local weather patterns, reduce the risks of flooding and landslides, and maintain the integrity of watersheds. Forest-based livelihoods and participatory forest management schemes contribute to local resilience by diversifying income sources and reducing communities’ reliance on rain-fed agriculture. The ecological services provided by forests are therefore central to Ethiopia’s efforts to build climate-resilient communities.

Forests are also tightly linked to Ethiopia’s export economy—particularly through their support to the coffee sector. Forest canopies provide the microclimatic conditions necessary for coffee cultivation, such as moisture retention and temperature regulation. The health of forest ecosystems is therefore directly tied to the productivity and quality of Ethiopia’s coffee, a key export commodity and source of livelihood for millions.

In the energy sector, forests indirectly contribute to hydroelectric power generation by maintaining watershed integrity. Forest cover helps regulate river flow and reduce sedimentation in reservoirs, ensuring more stable water volumes for hydropower plants. This not only prolongs the lifespan of critical infrastructure but also enhances energy reliability and security.

Yet, despite these multifaceted benefits, the forest sector in Ethiopia faces major financing and structural constraints. Insufficient public investment and limited access to international climate finance remain key barriers to scaling up forest conservation and restoration efforts. Bureaucratic hurdles, capacity gaps, and complex fund application procedures have made it difficult for local institutions to fully benefit from external funding sources. In parallel, the underdevelopment of forest-based value chains and limited private sector participation continue to restrict economic opportunities for forest-dependent populations.

Recent policy reforms have begun to shift this trajectory by encouraging private investment and public-private partnerships (PPPs) in forest restoration and sustainable land management. Emerging forest sector directives emphasize incentives such as tax relief, concessional financing, and streamlined regulatory pathways to catalyze private engagement. However, these efforts require continued support, adequate financing, and implementation capacity to unlock the full potential of Ethiopia’s forests as both an economic and ecological asset.

OBJECTIVES OF THE ASSIGNMENT

1) Overall Objective: To develop a comprehensive Revolving Fund Guideline that enables the design, operationalization, and long-term sustainability of revolving fund mechanisms to support forest conservation, restoration, and livelihood diversification at the community level.

2) Specific Objectives:

SCOPE OF WORK

The scope of work for this consultancy is comprehensive and strategic, designed to guide the establishment of a sustainable, transparent, and community-responsive revolving fund mechanism under RIP-II. The consultant will be expected to undertake the following key tasks:

1. Desk Review and Literature Synthesis:

2. Contextual Assessment and Stakeholder Consultations:

3. Design of Revolving Fund Framework:

4. Guideline Development:

5. Capacity Building and Validation:

6. Finalization and Handover:

DELIVERABLES

DURATION OF THE ASSGINMENT

The consultancy assignment is expected to be completed over a period of three months, from May to July 2025, totaling 75 working days. The timeline accounts for key milestones including the inception phase, consultations, drafting, validation workshop, and finalization. The assignment is structured to ensure adequate time for stakeholder engagement and iterative feedback integration. The consultant is expected to follow a detailed work plan to be submitted and approved during the inception phase, aligning with RIP-II’s implementation calendar and deliverables schedule. The table below summarizes the key deliverables along with their indicative due dates:

Deliverable

Description

Indicative Due Date

Inception Report

Work plan, methodology, consultation schedule

Early May 2025

Interim Technical Note

Summary of financing gaps, global practices, and emerging models

Mid-May 2025

Draft Revolving Fund Guideline

Structure, capitalization, and management arrangements

Mid-June 2025

Validation Workshop Facilitation

Presentation and feedback from stakeholders

Early July 2025

Final Guideline Document

Revised version incorporating inputs and implementation tools

End of July 2025

The contract will report the Climate Finance Lead in GGGI Ethiopia Office and directly work with the Climate Resilient Green Economy (CRGE) facility team members in the Ministry of Finance and the EFD team.

[Payment Milestones]

The consultant shall be paid the lump sum contract amount upon certification of the completed tasks satisfactorily, as per the following payment schedule:

Deliverables or Documents to be Delivered

Payment

Inception report

15%

Interim Technical Note

35%

Draft Guideline and facilitation of Validation Workshop

35%

Final Guideline Document

15%

QUALIFICATIONS AND EXPERIENCE

ADDITIONAL INFORMATION

1) Logistical Support

The GGGI shall provide transportation and pay DSA for the consultant during authorized travels to the regional states for data gathering.

2) Confidentiality and Proprietary Interests

The consultant shall not either during the term or after termination of the assignment, disclose any proprietary or confidential information related to the consultancy or the Government without prior written consent. Proprietary interests on all materials and documents prepared by the consultants under the assignment shall become and remain properties of the MOF. This assignment will be administrated by GGGI, and all relevant GGGI rules, policies and procedures will apply.

3) Evaluation Criteria

Upon the advertisement of the Procurement Notice, qualified Individual consultant is expected to submit both the Technical and Financial Proposals. Accordingly, the consultant will be evaluated based on Cumulative Analysis as per the following conditions: