Rwanda is among other countries across the globe that are facing climate change effects.
To mitigate climate change and adapt to its effects, Rwanda has set up a climate action plan that requires over $11 billion between 2021 and 2030 to mitigate and adapt to climate change.
At least $4.155 billion will be sourced from domestic financing while $6.885 billion will be sourced from external financing.
It is in this context that Rwanda is using different strategies to mobilize climate finance from different sources.
The New Times compiles some of the climate finance flows and projects recorded in 2022.
$104 million finance for green investments
In November 2022, President Paul Kagame launched Rwanda’s green investment facility worth $104 million (approx. Rwf109 billion) in its first capitalization to drive private sector ventures in climate-resilient projects.
The investment was launched at the UN climate conference known as COP27.
The facility will de-risk green projects to get the necessary financing.
It will use a blended finance approach such as debt, credit enhancements such as sub-debt, tenor extension, and collateral support to commercially viable projects in the green sector.
The first capitalisation was mobilised from France, Sweden, the United Kingdom, the European Investment Bank, and Green Climate Partnership Fund.
$319 million deal on climate financing
In 2022, the International Monetary Fund (IMF) approved a $319 million (approx. Rwf342 billion) loan to finance projects tackling climate change in Rwanda.
The funding was secured under the Resilience and Sustainability Facility (RSF), an initiative that aims at helping low-income and vulnerable middle-income IMF members address longer-term structural challenges such as climate change with longer-term, low-cost financing.
Rwf72.5 billion deal for climate-resilient agriculture
In October, the government of Rwanda and the European Union signed a financing agreement worth €69 million (approx.Rwf72.5 billion) to support climate-smart and inclusive agriculture.
The project is expected to support Rwanda’s Nationally Determined Contributions objective on climate adaptation by fostering the agricultural transition to socially and environmentally inclusive food systems and ensuring the country’s environmental and climate sustainability.
Earlier in May, the EU committed to provide a total of Rwf278 billion (€260 million) under its Multiannual Indicative Program (MIP), to fuel its partnership with Rwanda in areas such as climate and environment, green and digital transition, energy, transport as well as health and education for a period of four years.
Promoting cleaning cooking via €2 million partnership
Rwanda and Italy, in November, agreed on a new €2 million agreement to fund two projects, which will be implemented by the Rwanda Environment Management Authority.
The projects will promote sustainable afforestation, cooking, and low-carbon energy adoption as well as improve national wetland inventories to improve wetland restoration and protection.
46 million euros funding to support public sector climate investments
During COP27, the Government of Germany provided Euros 46 million as funding to support government institutions working to implement Rwanda's climate action plan, also known as the Nationally Determined Contribution (NDC) to the Paris Agreement.
The funding will be managed by Rwanda Green Fund (FONERWA).
Germany and Rwanda established the Climate and Development Partnership in March 2022. Germany has made available a total of Euros 202 million to date. The partnership enables climate initiatives in the areas of mitigation and adaptation as well as sustainable urban development.
$530m natural gas plant project
The construction of a multi-million plant to produce compressed natural gas for cooking, vehicles and industries from Lake Kivu methane gas , was launched this year.
GasMeth Energy LTD is set to undertake the project.
Rwanda to benefit from $62bn fund to address water challenges
Rwanda is set to benefit from the African Cities Water Adaptation (ACWA) Fund which is set to mobilise $62 billion so as to address water issues and build climate resilience as a way of ensuring sustainable urbanisation in African cities.
The revelation was made by Merard Mpabwanamaguru, the Vice Mayor of the City of Kigali in charge of Urbanisation and Infrastructure during CHOGM's side event on sustainable urbanisation in June.
The six African cities to initially benefit from the fund include Addis Ababa in Ethiopia, Dire Dawa in Ethiopia, Kigali in Rwanda, Musanze in Rwanda, Johannesburg in South Africa as well as Gqeberha, South Africa.
The funds will be accessed through an urban water resilience project designed by Water Resources Institute.
Rwanda to benefit from $25m initiative for climate resilient crop varieties
Rwanda, the Democratic Republic of Congo (DRC), and Burundi are set to benefit from a regional initiative dubbed "Transforming Agri-Food Systems in West and Central Africa (TAFS-WCA)” which is aimed to increase food security and combat the climate crisis.
The $25 million initiative was launched in May 2022 by CGIAR, a global research partnership for a food-secure future dedicated to reducing poverty, enhancing food and nutrition security, and fighting climate change.
The initiative aims to improve nutrition and food security within the context of climate change in West and Central Africa through nutritious, climate-adapted, and market-driven food systems.
In a period of three years at least 80,000 smallholder households will have access to climate-resilient, nutrient-dense crop varieties; with at least 16,000 of them using five climate-resilient, nutrient-dense crop varieties, and six good agricultural practices.
$5.1million for climate pledges implementation
Rwanda is among 12 countries that are set to benefit from a three-year project "GUARD AFRICA” to ensure just climate financing, just recovery from the impacts of climate change and Covid-19, promotion of green energy, and accelerate the implementation of Nationally Determined Contributions (NDCs) — the pledges to combat climate change up 2030.
Announced in May, the Guard Africa project is funded to the tune of 50 million Swedish krona ($ 5.1 million) – and seeks to catalyze conversations toward the acceleration of Nationally Determined Contributions (NDCs) implementation and overall climate action.
Rwf38bn to protect Rwanda’s national parks
In January, Rwanda was selected to host the regional headquarters of the Wildlife Conservation Society (WCS) following a presidential order signed by President Paul Kagame and issued in the national gazette.
Michel Masozera, the Director of Policy and Institutional Partnerships for Africa at WCS in Rwanda told The New Times that the country will continue to benefit from more conservation financing windows.
He said in partnership with the Ministry of Environment they were designing a $38 million (Rwf38.4 billion) project that could promote conservation around three national parks.
Rwf7bn to manage hazardous waste
Financed by Global Environment Facility (GEF) and UNDP, Rwf7 billion project was recently announced to manage hazardous waste in Rwanda from 2022 to 2027.
Hazardous chemical waste is defined as any liquid, gaseous, or solid chemical that is ignitable, corrosive, reactive, toxic, or persistent, and is no longer useful or wanted.
Sewage treatment project secured 8 Million Euros in funding
In the middle of the year, Water and Sanitation Corporation (WASAC) received 8 million Euros from the Lake Victoria Basin Commission (LVBC) of the East African Community (EAC) to construct Kigali Faecal Sludge Treatment Plant in Masaka Sector, Kicukiro District.
€56 million for Green City Kigali project
In March 2022, Rwanda received €56 million to kick off the implementation of priority projects that address the issues raising climate change as well as development.
In the agreement signed with the KFW Development Bank of Germany, €30 million will be allocated to the urban development project, Green City Kigali, and €26 million for the implementation of the Rwandan National Determined Contributions (NCDs) through the NDC Facility at the Rwanda Green Fund.
$221m plan for waste management, clean technologies
The government launched a 14-year circular economy action plan early this month that needs $211.2 million to be implemented in managing waste and adopting clean production technologies up to 2035.
Experts weigh in on status of Rwanda Green Fund
Rwanda Green Fund (FONERWA), which started operations in 2013, has so far mobilized $247 million of which some were mobilized this year and supported 46 investments that helped to avoid carbon emissions.
At least 176,000 green jobs have been created so far while 120,000 people were supported to cope with the effects of climate change according to the report.
Over 88,000 households were provided with access to off-grid clean energy as 47,000 hectares of forests and agro-forestry were planted.
So far 31,000 hectares of watershed and water bodies have been protected as 24,000 hectares of land were secured against erosion.
A conservation researcher, Prof Elias Bizuru who is also a lecturer at the University of Rwanda College of Science and Technology told The New Times that Rwanda among other developing countries should invest most of the funds in adaptation to climate change.
"When we look at climate change, there is climate finance for mitigation to reduce greenhouse gases in the atmosphere. But in the least developed countries such as those in Africa including Rwanda, we need more financing for adaptation to build resilience to climate change effects.
That is why the funds that Rwanda can get should focus on adaptation such as irrigation and disease and pest resistant crops in agriculture which benefits the communities a lot and improves their livelihoods,” he said.
He said that many projects are still failing to access funds from Rwanda Green Fund (FONERWA) as it requires it to be competitive.
"Therefore, it requires capacity building to help Rwandans develop proposals and be able to access the funds for adaptation projects. This is where rural communities can also benefit if more funds are invested in adaptation projects than mitigation projects,” he noted.