The government of Rwanda has put the environment and climate change at the heart of the country's policies and plans. However, implementation of such policies remains low.

These were the sentiments of climate experts, development partners and other key stakeholders who convened for the Public Finance Management (PFM) Coordination Forum on Wednesday, November 27, to discuss integration of climate finance and fiscal responsibility.

Rwanda has set a target to become carbon neutral and a climate resilient economy by 2050. To achieve this goal, the country has put in place a number of policies and strategies, whose implementation has been slowed down by among other factors, limited finances.

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Outlining the policies, Beatrice Cyiza, the Permanent Secretary at the Ministry of Environment, said that implementation will require private investments.

"We have various policy frameworks, including the recently adopted Climate and Nature Finance Strategy, the Green Taxonomy, the Green Growth and Climate Resilience Strategy among others, that all serve as a foundation laid by the government, but the bulk of the finances for implementation is with the private sector," she said.

Cyiza called upon the private sector to take advantage of tools such as the sustainability linked bonds, which offer opportunities for companies to not only raise funds, but also contribute to sustainability.

As per the country's updated Nationally Determined Contributions (NDCs) climate action plan under the Paris Agreement, Rwanda aims to reduce its greenhouse gas emissions by 38 percent by 2030, an endeavour that requires approximately $11 billion to achieve.

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According to Richard Tusabe, the Minister of State in Charge of the National Treasury, the government has already mobilised $4.8 billion and is looking to rope in the private sector to raise the remaining $6.2 billion.

"We are looking for innovative climate finance instruments to catalyse private sector investments," Tusabe said, adding that schemes like Ireme Invest are going to incentivise the private sector to come on board.

Tusabe however noted with concern that the private sector uptake of investment facilities like Ireme, remains low.

"The uptake is low because of the lack of capacity to package climate finance-related bankable projects," he noted, highlighting that the government is working with its development partners to provide technical assistance to the private sector.

The minister also attributed the low implementation of the climate policies to the lack of understanding of the climate agenda and cited the need for sensitisation down to the grassroots level.

Decentralisation

To be effective, climate finance must reach the communities that need it the most. The adoption of decentralisation in Rwanda will help climate policies and finances reach and benefit all communities.

Bob Gakire, the Permanent Secretary at the Ministry of Local Government, said that the implementation of decentralisation has been successful, but the decentralised entities need to be empowered to take advantage of climate finance.

"We have taken cities and towns down to the people through decentralisation, but we need to empower them to understand the climate policies and how to position themselves to utilise the available climate finances," he said.

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Gakire also said that decentralised entities need to be empowered to be self-sustaining.

"The districts must find ways to mobilise revenues that will help address their needs including climate related challenges, by making strategic investments as well exploring the possibility of digitising Own Source Revenues," he said.

Own Source Revenues are direct municipal revenues such as property taxes, user fees and charges.

Sustainable Public Procurement Policy

The newly adopted Sustainable Public Policy Framework (SPP), according to experts, will help accelerate implementation of some of the climate strategies.

The SPP will enable public institutions to make purchasing decisions that take into account the environmental and social impact of goods, services and works.

"The government will be taking the lead by procuring sustainably. From next year, we will ensure that a certain percentage of government vehicles are green and we will also go for more green construction projects," said Joyeuse Uwingeneye, the Director General of Rwanda Procurement Authority.

Weighing in on this, Cyiza noted that the SPP will create demand for green jobs and urged the private sector to begin positioning themselves to take advantage of the opportunities that come with the policy.