Climate change is one of the greatest challenges of our times. The change is expected to continuerninto the coming century at rates projected to be unprecedented in recent human history. Thernscale, implications, and global nature of the problem dictate robust internationalrncooperation within a structured framework. The UN in general and the UNFCCC in particularrnremain, in the view of many, the most representative and legitimate locus for internationalrnresponses to climate change. Adaptation to climate change, including support for insurancerninstruments, has emerged on the climate agenda alongside the reduction of atmosphericrngreenhouse gas concentrations as an essential part of the response to climate change risks.rnClimate insurance is reaffirmed in the UNFCCC and also further strengthened in the Parisrnagreement in 2015 which allowed risk insurance facilities, climate risk pooling and otherrninsurance solutions. In other words is considered as an essential tool to address loss andrndamage associated with the adverse effect of climate changes. Ethiopia is one of the countriesrnaffected by climate change. Over half a century Ethiopia has experienced several episodes ofrndevastating droughts and lingering rainfall variability. These manifestations of climate changernaffect ecosystem, water resource, food security, and human health. Therefore, successfulrnadaptation to the changing state of the environment requires pertinent and adequate adaptiverncapacities. An important cornerstone for risk management, a possible no-regrets adaptationrnstrategy, and an indispensable tool to address loss and damage is insurance. However, In spiternof the fact that Ethiopia has contributed very little to the climate change problem, thosernvulnerable rural farmers of the country are expected to pay insurance premiums to cover eventsrnmade worse by climate change, ultimately would be unjust and contrary to the principles of thernUNFCCC and the Paris Agreement. Thus, the core assertion of the paper is climate insurance inrnline with the Paris agreement and assesses its implementation in the EIC; however, much has yetrnto be done to effectively realize climate insurance in our country, Ethiopia