Rwanda has launched its Climate and Nature Finance Strategy (CNFS) projected to raise $6.5 billion (approx. Rwf8.7 trillion) in line with increasing green investment by both the public and private sector within six years.
The Climate and Nature Finance Strategy, is 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 six-year strategy which runs from 2024 through 2030, is the blueprint for mobilizing the financial resources needed to achieve Rwanda’s ambitious goals for carbon neutrality by 2050, and promoting biodiversity conservation and sustainable economic development, according to its developers.
Launched on October 17, the plan was developed by the Ministry of Finance and Economic Planning in collaboration with other government agencies, the private sector, and development partners. It aims to green existing investments and make them more climate resilient.
As per the strategy, Rwanda’s Vision 2050 aims to transform the country into an upper middle-income country by 2035 and a high-income country by 2050, while simultaneously fostering a carbon-neutral and climate-resilient economy.
As part of this vision, Rwanda aims to reduce emissions by 38 per cent compared to business as usual by 2030. The CNFS will play a pivotal role in providing strategic solutions for mobilizing and scaling finance to achieve this ambitious development trajectory, its developers observed.
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.
Here are the Key Pillars of the Climate and Nature Finance Strategy, as per the Ministry of Finance and Economic Planning
- 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.
- 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.
- 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.
- 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.
- 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.
