Financing sustainable watershed management in Ethiopia: exploring innovative financing strategies for nature-based solutions

Land and watershed degradation in Ethiopia threaten agricultural productivity, water supplies, and livelihoods. Key challenges include inadequate financing and unsustainable conservation interventions. Innovative financing strategies can help attract domestic and international investments for conservation interventions, or “nature-based solutions” (NBS). This paper identifies NBS financing models that offer promising pathways for larger and more sustainable investments in conservation in Ethiopia, with a focus on water-related benefits. It is primarily intended to provide valuable information to Ethiopian policymakers, project developers, and practitioners.