In the last several years, Ethiopia had recorded double digit economic growth and the government of Ethiopia as well as international organizations such as the IMF has indicated that Ethiopia's economy will continue to grow in a fast pace. With this rate Ethiopia aims to achieve middle-income status by 2025. However, following the conventional development path would, among other adverse effects, result in a sharp increase in GHG emissions and unsustainable use of natural resources. To avoid such negative effects, the government has developed a strategy to build a green economy.

In order to achieve this, the government of Ethiopia has developed a Climate Resilient Green Economic (CRGE) plan. The vision of CRGE is to achieve middle-income status by 2025 in a climate-resilient green economy. As set forth in the Growth and Transformation Plan (GTP), reaching this goal will require boosting agricultural productivity, strengthening the industrial base, and fostering export growth. Ethiopia's ambition to become a "green economy front-runner" is an expression of its potential for and belief in a sustainable model of growth. The growth will result in a significant shift in GDP shares: In 2025, agriculture would contribute only 29% to the GDP, industry 32%, and services the remaining 39%. If Ethiopia were to pursue a conventional economic development path to achieve its ambition of reaching middle-income status by 2025, GHG emissions would more than double from 150MtCO2e today to 400MtCO2e in 2030.