Team Rwanda Showcases Innovative Climate and Nature Finance Strategy at COP29 Event

By TOP AFRICA NEWS Writer

Team Rwanda hosted a pivotal event at COP29 today, showcasing the country’s innovative Climate and Nature Finance Strategy aimed at combating the pressing challenges posed by climate change.

The event featured a compelling presentation by Teddy Mugabo, CEO of the Rwanda Green Fund, followed by a panel discussion focused on mobilizing climate finance and positioning Rwanda as a sustainable finance hub.

In her presentation, Mugabo emphasized the urgency of addressing climate change impacts that have severely affected Rwanda.

“So really, just more like a story, the reason behind developing this climate and nature finance strategy. First, we begin with a challenge,” she stated.

Mugabo highlighted the staggering costs associated with climate-related disasters, referencing studies that indicated Rwanda lost an estimated $300 million in 2022 alone due to such events.

She pointed to a catastrophic day on May 1, 2023, when flash floods and landslides claimed 135 lives and caused over $415 million in infrastructure damage.

“Just to put this into perspective, first we had $300 million over a period of one year and then $415 million in just one day,” Mugabo explained, underscoring the urgent need for a robust response.

 With these realities in mind, Mugabo declared that Rwanda has no choice but to prioritize climate change within its development agenda.

“We really don’t have a choice, but to place climate change at the center of our development because we can choose to develop in an unsustainable manner, but we know that will lead to significant challenges,” she said.

The presentation also touched upon the potential economic repercussions of inaction.

“A study by the World Bank showed that if we continue doing business as usual, we risk losing between five to 7% of our GDP annually,” Mugabo warned, stressing the need for a sustainable approach that meets the diverse needs of the nation in health, education, and infrastructure.

In response to these challenges, Mugabo outlined Rwanda’s vision for a sustainable future, referencing key strategies aimed at achieving a carbon-neutral economy by 2050.

“We want to develop in a climate-compatible way, and we have set the vision to become a green Rwanda,” she asserted.

The Climate and Nature Finance Strategy, spearheaded by the Ministry of Finance, represents a collaborative effort involving various government sectors and financial institutions.

“This strategy is basically a result of joint efforts between the Ministry of Environment, Ministry of Finance, the Green Fund, but also the financial sector,” Mugabo stated, highlighting the importance of cross-sectoral coordination.

She highlighted the need for a holistic, long-term approach: “We’ve learned that the project-based model, while effective, is often fragmented and doesn’t lead to the desired impact on the ground. Our new strategy focuses on creating bigger, more interconnected programs that bring together a diverse range of partners, including bilateral and multilateral organizations, as well as the private sector.”

A key objective of the strategy is to position Rwanda as a sustainable finance hub.

“We believe we have the right policies, frameworks, and tools in place to achieve this,” Mugabo asserted. “The Kigali International Financial Center (KIFC) plays a crucial role in this endeavor, attracting sustainable finance players and solidifying Rwanda’s position as a leader in green finance.”

 Mugabo emphasized the importance of private sector engagement: “The private sector is a crucial component of our strategy. We’re working to create an environment that is conducive to investment, with clear policies, incentives, and advisory services. The Rwandan Development Board has already made great strides in establishing a business-friendly environment, evidenced by the fact that companies can be registered within 24 hours.”

 The Rwandan government is also actively exploring innovative solutions, like blended finance through the IREME Invest facility, which has successfully raised close to $260 million USD. “We’re not just talking about sustainability, we’re taking action,” Mugabo concluded.

“Our green taxonomy will define what ‘green’ means for different sectors, like infrastructure and agriculture, ensuring that our efforts are standardized and impactful. This is a commitment to building a sustainable future for Rwanda, and we invite the global community to join us in this endeavor.”