November 13, 2024

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Rwanda Unveils Ambitious Climate and Nature Finance Strategy for Sustainable Development

The Government of Rwanda on October 17, 2024, officially launched its Climate and Nature Finance Strategy, a comprehensive framework designed to accelerate investment in climate action and nature conservation. The strategy aims to position Rwanda as a leader in sustainable development, advancing both climate resilience and environmental preservation while supporting economic growth and social well-being.

The event brought together key stakeholders, including senior government officials, development partners, private sector representatives, academia, and civil society organizations, to reaffirm their commitment to financing climate action in Rwanda. The strategy seeks to align financial flows with the country’s ambitious climate goals under its Nationally Determined Contributions (NDCs) and Green Growth and Climate Resilience Strategy (GGCRS).

The Minister of State for Public Investments and Resource Mobilization, Mutesi Rusagara, underscores the urgency of mobilizing both domestic and international resources to tackle the dual crises of climate change and biodiversity loss as well as tap into new economic opportunities that will address these crises.

She said, “Rwanda recognizes that climate resilience and nature conservation are two sides of the same coin. Our National Climate and Nature Finance Strategy will help us harness innovative financing solutions to achieve our sustainable development goals. By bringing together public, private, and international resources, we will unlock investments that safeguard both our environment and the livelihoods of our people.”

The Chief Economist at Rwanda’s Ministry of Finance and Economic Planning (MINECOFIN), Stella NTEZIRYAYO, revealed that the overall financing gap for Rwanda’s NDC implementation is estimated at $6.5 billion until 2030 period and a biodiversity of financial needs assessment conducted in 2018 estimated that between $975 and 107.7 million is needed for the period 2019-2030 to finance Rwanda’s biodiversity goals, as per National Biodiversity Strategy and Action Plan commitments.

“This is quite huge for climate but despite this challenging task, there are some opportunities that we can leverage, there are things that we’ve done in the past and that’s the way we’ve been approaching financing with the establishment of Ireme fund for example,” said Stella.

She added, “The climate and finance strategy is a road map that is going to take us from 2024 until 2030 and during this period the idea is to see how we can have different approaches in terms of financing instruments that are going to help us achieve our goals.”

Rwanda has set ambitious goals for carbon neutrality by 2050, promoting biodiversity conservation and sustainable economic development. The Climate and Nature Finance Strategy will mobilize financial resources.

Albert Solé, Senior Private Sector Specialist, East Africa, at The World Bank, noted that Rwanda is a leader in climate and nature finance mobilization, leveraging global trust funds and bilateral resources. Implementing the CNFS will mainstream climate and nature considerations into traditional financing and economic planning efforts for sustainable development.

He said, “This strategy will prioritize climate-resilient and sustainable investments and support innovative financial structures and private sector funding to enhance climate action and conserve Rwanda’s biodiversity and the ecosystem services that so many Rwandans depend on.”

The Climate and Nature Finance Strategy aims to increase financial flows for climate and nature projects through a mix of public, private, and international funding sources. Rwanda’s private sector will play a key role through public-private partnerships, sustainable investments, and green job creation. The strategy also promotes nature-based solutions, including ecosystem restoration, sustainable land use, and conservation initiatives, to reduce greenhouse gas emissions, enhance biodiversity, and improve disaster resilience.

Furthermore, Rwanda’s Climate and Nature Finance Strategy aims to strengthen the Ministry of Finance by creating a Climate Finance and Green Economy Department and to engage with multilateral organizations, development partners, and climate finance mechanisms to coordinate efforts in climate and nature finance.

The Ministry of Finance will oversee the implementation of the strategy, with the Climate Finance Department coordinating resource mobilization and project funding. Collaboration with the private sector, civil society, and international partners is encouraged.

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