Rwanda needs $11 billion (approx. Rwf13.8 trillion) to implement measures that will mitigate and adapt to climate change by 2030. The needed climate finance is being mobilised through different channels. The New Times examines the climate funding raised by Rwanda in 2023 and its intended purpose. Rwf415 billion Building on the Resilience and Sustainability Facility with the International Monetary Fund, the Government of Rwanda, together with the Agence Française de Développement (AFD), European Investment Bank (EIB), Cassa Depositi e Prestiti (CDP), and the International Finance Corporation (IFC), in June, announced a collaborative effort to promote public-private partnerships, increase climate finance, and attract private climate investment. This initiative aims to raise an extra €300 million (approx. Rwf415 billion) to enhance climate resilience in Rwanda. ALSO READ: Plan to mobilise €300m for Rwanda’s climate resilience unveiled at Paris summit The new support complements and builds on the $319 million (approx. Rwf 402 billion) in financing accessed by the Government of Rwanda through the Resilience and Sustainability Facility (RSF) arrangement with the International Monetary Fund (IMF). Importantly, this collaborative support will bolster Rwanda’s efforts to address the impact of climate change on vulnerable communities. It also seeks to scale up Ireme Invest — Rwanda’s unique and innovative investment facility dedicated to private sector green investment — that was launched by President Paul Kagame in November 2022 at the UN Climate Change Conference (COP27) in Egypt. “The partnership we have announced today represents a transformational shift in the provision of climate finance and is a vote of confidence in Rwanda’s long-term climate action strategy. This is an important milestone in our journey to achieve our Nationally Determined Contributions which are estimated at $11 billion by 2030. We thank all the partners that have joined this initiative and we will be working together to make it a reality,” said Prime Minister of Rwanda, Dr Edouard Ngirente. Rwf100 billion The Green Climate Fund, a global fund set up to realise the goals of the Paris Agreement, in October, approved two major investments worth $80 million (approx. Rwf100 billion) that will build the climate resilience of vulnerable communities in Rwanda’s Congo Nile Divide through forest and landscape restoration, and spur private sector green growth through Ireme Invest. ALSO READ: Ireme Invest secures over $42 million to support green projects The project to build the climate resilience of vulnerable communities in Rwanda’s Congo Nile Divide through forest and landscape restoration is worth $39.1 million (approx. Rwf49 billion) and will be implemented in Karongi, Musanze, Ngororero, Nyabihu, Nyamagabe, Nyamasheke, Nyaruguru, Rubavu, Rusizi, and Rutsiro districts. The project will develop more sustainable management of 278,000 hectares and promote sustainable agroforestry techniques in 2,000 hectares of plantations, reducing demand for fuel wood and alleviating deforestation pressures. “Rwanda’s vulnerability to the impacts of climate change propels us with no multiple options other than working with the biggest climate fund (GCF). I am pleased to note that Rwanda’s Project pipeline to GCF is currently the biggest among the National Direct Access Entities’ submitted projects. It is based on the financial needs of Nationally Determined Contributions which will cost at $11 Billion by 2030,” said Uzziel Ndagijimana, Rwanda’s Minister of Finance and Economic Planning. Rwf8.5 billion The City of Kigali is among three African cities that have been selected to benefit from funds aimed at building resilience to the impacts of climate change and reducing carbon emissions. Climate resilience and mitigation in Rwanda’s capital will be achieved through afforestation in upstream bare lands, agroforestry, reforestation of urban degraded forests, planting urban trees, and protecting vegetated buffers. The funding secured on the side of Rwanda, in December, is equivalent to 9.3 million Canadian Dollars (approx. Rwf8.5 billion). Rwf26 billion In November, The OPEC Fund for International Development announced a $21 million (about Rwf26 billion) loan to support a sustainable water supply project in Rwanda. ALSO READ: Rwanda secures Rwf26bn to boost water supply to Kigali The OPEC Fund Director-General said: “Water is a vital resource that sustains life and drives economic development. We are proud to support Rwanda’s efforts to improve water management systems and provide access to potable water and sustainable services to meet rapidly growing demand. Sustainable water management is also necessary to mitigate the impacts of climate change, foster better health, and create new economic opportunities for the people of Rwanda.” Rwf6 billion In June, the Rwanda Mines, Petroleum, and Gas Board (RMB) secured a €4.1 million (about Rwf6 billion) project aimed at reducing the environmental impact of mining activities. The funding aims to help Rwanda achieve a high level of compliance with occupational health and safety standards, as well as social and environmental protection. Rwf9 billion Rwanda is among the East African countries that will benefit from $7 million (about Rwf9 billion) in funding to finance a regional initiative to boost hydro-meteorological and early warning service. The provision of funding is timely, given that Rwanda has experienced increasingly severe weather and climate extreme events in recent years. Rwf31 billion The Africa Centre of Excellence for Sustainable Cooling and Cold Chain (ACES), so far, has mobilised $25 million (over Rwf3 billion) funding to become fully operational by 2024. The project funded by the UK government and other partners will deliver on-the-ground support and training for farmers, fishers, and their communities, from designing sustainable off-and-on-grid community cooling and cold chain solutions. Rwf123 billion The International Monetary Fund (IMF), on May 24, approved a disbursement of $98.6 million (approx. Rwf123 billion) for Rwanda’s Policy Coordination Instrument (PCI) in climate resilience targets. RSF is 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.
