On October 17, 2024, Rwanda unveiled its Climate and Nature Finance Strategy (CNFS), aiming to mobilise $6.5 billion (approximately Rwf8.7 trillion) by 2030.
This initiative aligns with the country’s long-term goals of carbon neutrality and sustainable development. Developed by the Ministry of Finance and Economic Planning alongside government agencies, private sector stakeholders, and development partners, the strategy focuses on greening investments and improving climate resilience. It’s set to be a cornerstone in achieving Rwanda’s Vision 2050, which includes transforming the nation into a high-income, carbon-neutral economy.
The CNFS addresses both emissions reduction and climate adaptation. Rwanda’s updated Nationally Determined Contributions (NDCs) estimate $11 billion will be needed for climate action by 2030, with 40% funded domestically and 60% reliant on international support. The strategy highlights a financing gap of $6.5 billion and underscores the need for annual investments of around $2 billion. Although the government is investing $700 million yearly, the private sector’s role remains underutilised. In 2022, the sector contributed $2.1 billion to Rwanda’s GDP, including $399 million in FDI, showcasing its potential to support green initiatives.
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To stimulate private sector participation, the strategy proposes technical and financial support for developing bankable climate projects. It also outlines five key priorities, such as promoting low-carbon and climate-resilient investments, leveraging public finance, and introducing innovative financial instruments like green bonds. The aim is to create a conducive environment for private investors through tax incentives and policies that align with Rwanda’s Green Taxonomy—a framework that defines and ensures the integrity of green investments.
The CNFS places strong emphasis on establishing effective monitoring and evaluation systems to guarantee transparency and accountability in climate-related investments. By implementing advanced data collection and reporting mechanisms, Rwanda aims to track progress meticulously and optimise the use of climate finance.
This strategy, coupled with efforts to harmonise investments with both national and global climate objectives, is designed to steer Rwanda towards its sustainable development goals, ensuring long-term resilience and economic growth.
