Second Community Action for Landscape Management Program for Results II (CALM II) [C180]
Andrea Borgarello/World Bank
CALM II aims to improve climate resilience and livelihoods by expanding the area under sustainable land management practices, secure land tenure and increase market linkages in highland areas of Ethiopia.
REGION
Africa
PROJECT REFERENCE
NDF C180
DURATION
2026 to 2031
NDF FINANCING
EUR 10 million
FINANCING TYPE
Grant
IMPLEMENTING AGENCY
The World Bank
NDF CONTACT
Morten Holm van Donk (morten.vandonk@ndf.int)
Objective
Ethiopia faces macroeconomic and social challenges, including rising poverty, internal conflict, and high vulnerability to climate change. Despite two decades of GDP growth driven by agriculture, infrastructure, and manufacturing, more than 40% of Ethiopians still live below the poverty line, with rural communities and women disproportionately affected. Limited access to services, high debt levels, and recurring political instability further constrain sustainable development.
Climate change compounds these pressures. Ethiopia’s economy is highly climatesensitive, and over 80% of the population relies on rainfed agriculture. Increasing temperatures, recurrent droughts, and extreme rainfall events threaten livelihoods and food security, with seven major droughts recorded in the last 30 years.
CALM 2 supports Ethiopia’s Strategic Investment Framework for Sustainable Land and Natural Resources Management. The programme aims to strengthen climate resilience and improve livelihoods in highland areas by expanding sustainable land management practices, securing land tenure, and improving market linkages.
Building on earlier work in forest protection, climatesmart agriculture, and soil and water conservation, CALM 2 will help restore degraded forests, strengthen agribusiness value chains, and mobilise private-sector engagement through payments for ecosystem services and a carbon credit system. This aligns strongly with NDF’s Strategy 2030 and its priorities on climate resilience and green growth.
Amongst other, NDF’s contribution plays a catalytic role by helping establish a robust framework for carbon credit trading and increase stronger market linkages. Once operational, revenues from carbon markets will enable continued financing of landscape restoration activities beyond the lifespan of donor funding, supporting longterm sustainability.
Financing
NDF provides a grant of EUR 10 million. The total donor funding of CALM II additional to the inherent government budget is USD 238.6 million, with co-financing from the World Bank (USD 200 million), Scaling Climate Action by Lowering Emissions (USD 15.5 million), Climate Investment Funds (USD 11.5 million).