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This study indicates there are major challenges for Ethiopia to finance its response to climate change. The national Climate Resilient Green Economy strategy has called for annual spending of USD 7.5 billion to respond to climate change. With national budgetary resources for climate change-relevant actions estimated to be in the order of USD 440 million per year, and international sources adding several tens of USD million per year, there appears to be a major financing gap. Therefore, if the strategy is to be delivered, much more needs to be done to mobilise additional resources both domestically and externally.