October 17, 2024: The Government of Rwanda has 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.

This high-level event, held today in Kigali, 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).

Mutesi Rusagara, the Minister of State for Resource Mobilization and Public Investments, 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.

"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," Minister Rusagara says.

Key Pillars of the Climate and Nature Finance Strategy:

1. Resource Mobilization: The strategy aims to significantly scale up financial flows for climate and nature projects by leveraging a mix of public, private, and international funding sources. This includes innovative instruments such as green bonds, carbon markets, biodiversity credits, and blended finance.
2. Private Sector Engagement: Rwanda’s private sector is expected to play a key role in achieving the strategy’s goals through public-private partnerships (PPPs), incentives for sustainable investments, and the creation of green jobs across key sectors like agriculture, energy, and infrastructure.
3. Nature-Based Solutions: A core focus of the strategy is to promote nature-based solutions, including ecosystem restoration, sustainable land use, and conservation initiatives. These efforts will not only reduce greenhouse gas emissions but also enhance biodiversity, water security, and disaster resilience.
4. Institutional Strengthening: The strategy reinforces Rwanda’s commitment to strengthening the capacity of the Ministry of Finance, by creating a Climate Finance and Green Economy Department, which will play a pivotal role in coordinating climate and nature finance efforts.
5. International Collaboration: Recognizing the importance of global partnerships, Rwanda will continue to engage with multilateral organizations, development partners, and climate finance mechanisms to support the implementation of the strategy.

Looking Ahead

Rwanda has set ambitious goals for achieving carbon neutrality by 2050 while promoting biodiversity conservation and sustainable economic development. The Climate and Nature Finance Strategy will serve as a blueprint for mobilizing the necessary financial resources to realize these objectives.

Albert Solé, Senior Private Sector Specialist, East Africa, at The World Bank - highlights that Rwanda is already a leader in the mobilization of climate and nature finance, effectively leveraging global climate trust funds and bilateral resources for the environment sector. Implementation of the CNFS will expedite the mainstreaming of climate and nature considerations into traditional financing and economic planning efforts to promote sustainable development.

"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”, Solé says.

Next Steps

The strategy’s implementation will be overseen by the Ministry of Finance, with the Climate Finance Department taking the lead in coordinating resource mobilization and project funding. The private sector, civil society, and international partners are encouraged to collaborate with the government to unlock the full potential of climate and nature finance in Rwanda.

For more information about Climate and Nature Finance Strategy read https://www.minecofin.gov.rw/index.php?eID=dumpFile&t=f&f=108501&token=a5eaa56d1b061dbef3c1a06b5ea1559fe82c53f7