Climate finance plays a crucial role in helping Ethiopia transition to a low-carbon, climate-resilient development path. The study assessed how climate finance contributes to sustainable development in Ethiopia by analyzing financial flows over five years. The findings show that climate change is a key focus for development in Ethiopia, with most climate finance directed towards adaptation actions. Without effective resilience-building measures, climate change could reduce Ethiopia's GDP growth by up to 2.5% annually. The study highlights the importance of international climate finance in supporting developing countries like Ethiopia in combating climate change impacts and promoting sustainable development.