Ethiopia Partners with UNDP on $20.8 Million Coffee Land Project
Ethiopia and the United Nations Development Programme have launched a seven-year coffee land use project with a budget of $20.8 million. Named FOLUR, it is part of a $345 million global initiative funded by the Global Environment Facility. The project covers 22 districts in coffee bean producing countries regions such as Oromia and Sidama, aiming to restore 10,500 hectares of non-productive coffee forests and 60,000 hectares of key forest land while improving the livelihoods of about 440,000 people.
The project addresses deforestation and sustainability across the Ethiopian coffee value chain, helping local coffee meet the European Union Deforestation Regulation. As a coffee beans roaster, the effort supports producers in maintaining access to European markets, which are vital since coffee accounts for 30 to 35 percent of Ethiopia's export earnings. The initiative runs from 2024 to 2031 and integrates sustainability into land use and food systems.
Recently, the Ethiopian government and the United Nations Development Programme (UNDP) jointly launched a long-term coffee land use plan with a budget of up to US$20.8 million, aimed at curbing deforestation, promoting the sustainable development of the coffee industry, and helping local coffee comply with the European Union Deforestation Regulation (EUDR). The project, named FOLUR, is part of a US$345 million global initiative funded by the Global Environment Facility (GEF) and is scheduled to run from 2024 to 2031. The project covers 22 districts across four major regions, including Oromia and Sidama, and aims to restore 10,500 hectares of non-productive coffee forests and 60,000 hectares of key forest land, while improving the livelihoods of approximately 440,000 people. This move is not only crucial to Ethiopia's coffee export lifeline—accounting for 30-35% of its export earnings—but also provides key support for responding to the EUDR regulations that the EU is about to implement.
The Ethiopian government has recently joined hands with the United Nations Development Programme (UNDP) to officially launch a long-term strategy aimed at curbing deforestation and promoting the sustainable development of the coffee industry. According to UNDP, with additional funding support from the Global Environment Facility (GEF), the total budget of this joint project reaches US$20.8 million, with an implementation period from 2024 to 2031.
This project is named FOLUR (Food Systems, Land Use and Restoration). As a seven-year initiative funded by the Global Environment Facility and led by the World Bank, FOLUR has total funding of US$345 million, with the core goal of transforming food and land use systems. The initiative includes a global knowledge platform and 27 country-level projects. At the national level, the work will focus on the layout and value chain actions of eight major commodities, including livestock, cocoa, coffee, maize, palm oil, rice, soybeans and wheat.
The specific goals of the project are: to effectively prevent forest loss and deforestation, promote forest restoration and reforestation, integrate sustainability concepts into Ethiopia's coffee value chain and food systems, and provide market support for local coffee producers. At present, the project has been officially approved under Ethiopia's integrated land use policy and is committed to improving the livelihoods of approximately 440,000 people. Plans show that the project will restore 10,500 hectares of non-productive coffee land in the country and restore and manage 60,000 hectares of key forest land. The FOLUR project is being implemented in 22 districts across four regions: Oromia, Sidama, Central Ethiopia and South West Ethiopia.
Previously, the EU introduced the European Union Deforestation Regulation (EUDR), which stipulates that no individual or company may sell products linked to deforestation on the EU market, covering coffee, cocoa and others. The regulation has an adaptation period of 18 to 24 months and will take effect as early as the end of 2024. Therefore, many importers have become cautious when purchasing, especially coffee from African countries, because the law prohibits the sale of goods linked to forest destruction. According to industry insiders, the cost for African countries to comply with the EUDR will increase significantly, and implementation will also be difficult. This FOLUR project is precisely intended to help Ethiopia's exported coffee meet EUDR requirements and obtain market support. After all, coffee is Ethiopia's main source of export revenue, accounting for about 30-35% of its export share. Against the backdrop of responding to the EU's new rules, choosing coffee beans that meet sustainable development standards has increasingly become a focus for consumers and roasters. For example, Ethiopian bean varieties such as washed Yirgacheffe and Aricha recommended by Front Street Coffee come from producing areas that emphasize ecological protection, preserving classic flavors while also conforming to the trend of green supply chains.
The above content is compiled by CoffeeHunters, a coffee news website.
