Climate change in Ethiopia’s capital city of Addis Ababa is characterized by an increase in rainfall and subsequent flooding and severe temperature with more heat waves. The city government has now recognized climate change as a serious threat, including it being a reason for loss of life and livelihoods. Even though governance has become a key mechanism to address a reduction in greenhouse-gas emissions and vulnerability to climate change, the practice of climate-change governance has been undermined by different factors. Thus, this study examined factors affecting climate-change governance in the city. The research adopted a mixed research design and depends on primary and secondary data sources. The binary logistic regression model and descriptive statistics were both used to analyse the quantitative data, while the descriptive method was used for the qualitative data. The results reveal that a lack of coordination, political will and leadership are the major factors that hinder the practice of governance in the city, followed by inadequate finance, policy, strategy, and regulation. In addition, a shortage of knowledgeable experts, lack of access to information and technologies had their own contributions to the ineffectiveness of climate-change governance. Thus, the city administration should place emphasis on climate change, giving it comparable weight to other crosscutting issues, and enabling the functioning of the steering committee with a strong accountability system. In addition, the city administration should take aggressive measures, including revising or formulating new policy, strategy or regulation, and even creating an independent institution for climate-change issues. Furthermore, the Addis Ababa City environmental protection and green development commission should create an enabling environment to attract non-state actors, in general, and NGOs, in particular, and should assign one directorate to mobilise finance, following the approach taken by the federal environmental protection commission. The commission should implement a mechanism to efficiently utilize the budget by applying continuous monitoring and evaluation. The commission should also provide continuous training and capacity building for leaders and experts at sub-city and Woreda levels.