Consistent, unpredictable, and extreme weather events including recent floods, landslides and heavy rainfall around different parts of the country is a reminder that Rwanda is significantly vulnerable to the impacts of the climate crisis. Heavy downpours this year, although not as destructive as last year, have led to fatalities and destroyed farmlands in the northern, western, and southern provinces. Landslides have washed away people’s houses and left many homeless, while seasonal droughts have at times left many counting losses. To deal with these challenges, climate finance is key. Yet, the government says it has identified a funding gap of $7.1 billion (Rwf9 trillion) in order to meet its climate action targets under the Paris Agreement by 2030. Rwanda requires a total of $11.04 billion (Rwf14 trillion) to reduce carbon emissions by 4.6 million tonnes. The country has showed its willingness and seriousness to raise finance for climate including the $319 million concessional financing from the International Monetary Fund (IMF) to advance efforts in building resilience against climate change. Financiers such as the Development Bank of Rwanda (BRD) and Rwanda Green Fund have taken it upon themselves to take climate finance seriously. BRD, for instance, issued an inaugural Sustainability-Linked Bond (SLB) worth Rwf30 billion. However, the climate finance gap that has been identified shows that the country is far from achieving its climate targets. Climate finance holds potential; it can enable the country to invest in renewable energy projects, climate-resilient agriculture, and disaster risk reduction. We don’t pretend to suggest that climate finance is a magic wand since addressing the impacts of climate change requires a multi-prolonged approach including policy changes, technological advancements, and behavioral shifts, but it is a step in the direction. It is also true that technological advancements and behavioral shifts can arguably be realized if we increase climate finance. This type of finance can enable innovators to develop technologies that could predict rainfall patterns, introduce new techniques to deal with floods, landslides and droughts. This type of finance could equally enable the government to invest in turning wetlands into recreational places such as artificial lakes, nature reserves, as well as expropriate people living in disaster-prone areas.
