GOVERNANCE & CLIMATE CHANGE: THE CASE OF RWANDA
23 June 2015
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OUTLINE
§ Rwanda country context. § The evolution of climate change policy
§ National development goals: The role of climate change governance § Transitioning from Policy to Implementation
§ Vision 2020; Economic Development and Poverty Reduction Strategy; Green Growth and Climate Resilience Strategy (GGCRS).
§ Case study: The Fund for Environment and Climate change.
Rwanda: Geography and Historical Brief
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Rwanda context
Geography and brief Historical context. u From Genocide to robust policies
§ Policy making and overall environment and climate change governance - The case of Vision 2020 § Indicator on Energy – 50% of Rwandans using
fuel wood. § Revision of vision in 2010
Vulnerability to Climate Change
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Rwanda vulnerability to Climate Change
Drought(affected(districts:(Bugesera,(Gatsibo,(Kayonza,(Kirehe,(Ngoma,(Nyagatare(and(Rwamagana(
Flood(affected(districts:(Burera,(Rubavu,(Gicumbi,(Nyabihu,(Ngororero,(Musanze,(Rutsiro,(Nyamagabe,(
Muhanga,(Kamonyi(and(Bugesera(
Landslide(affected(districts:(Nyabihu,(Ngororero,(Kamonyi,(Muhanga,(Burera(and(Gicumbi(
Rwanda’s(NAPA(identiDies(two(sets(of(
Districts(for(priority(
implementation(of(the(
climate(adaptation(
activities:((a)(districts(
prone(to(drought(H(
Bugesera,(Kirehe,(
Kayonza,(Gatsibo,(
Rulindo(and(
Nyamagabe;(and((b)(
districts(prone(to(
Dloods(H(Nyabihu,(
Rubavu,(Rutsiro(and(
Ngororero.!
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• Current energy consumption rate of biomass
(used mainly for cooking) at 85%; • 37% of GDP is from agriculture: 1 million
affected by 2005/6 by drought and landslides;
• Drought and floods induce water shortages; • Climate change increases pressure on
vulnerable systems (over 50% of GDP); • The burden of climate-sensitive disease -
malaria risk could increase 150% by 2050.
Climate Change Impacts: Evidence
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u Rwanda is vulnerable to climate change u Impacts of Climate Change to Rwanda’s
development § Additional economic costs to Rwanda
§ ~1% of GDP per year by 2030 (excluding the future effects of floods and other extreme events) ~ $50m-$300m per year for adaptation
Strategic Framework
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§ Translating policy into implementation § The medium term Strategy – Economic
Development and Poverty reduction Strategy (EDPRS)
§ The green Growth and Climate Resilience Strategy (GGCRS)
§ The Fund for Environment and Climate Change § Critical to current and future climate resilience § A catalyst for transition to “Green Economy”.
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Economic transformation for
rapid growth
Rural Development
Productivity and youth
employment creation
Accountable Governance
§ Structural shift in economy to achieve a target of 11.5% growth
§ Private sector development and urbanization - key drivers
§ Pursuing a ‘green economy’ approach to economic transformation
§ Large percentage of Rwandans will continue to live in rural areas
§ Accelerated provision of basic goods and services
§ Productivity and skills will become a key constraint
§ Urgent need to ensure jobs for large number of youth
§ Citizen engagement, ownership and more efficient governance are pre-requisites for success in EDPRS implementation
Strategic framework: EDPRS II
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The Fund for Environment and Climate Change (FONERWA)
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FONERWA: a national response to climate financing
§ Coordinating national climate finance
§ Facilitating access: § Adaptation Fund, LDCF/AfDB, PPCR, etc.
§ Current level of funding ~ $US 74.5 M
§ Catalyzing innovation
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OPTIMIZING OPPORTUNITIES - GREEN CLIMATE FUND (GCF)
§ The fund is at the forefront of engaging GCF
§ Current GCF involvement § Accreditation of MINIRENA § NDA readiness proposal § Concept proposal – KFW partner
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25/08/15
Window 1: • Conservation
& rehabilitation of natural resources
Window 2: • Renewable
Energy, R&D and technology transfer
Window 3: • Environment &
climate change mainstreaming
Development areas: Thematic Financing Windows
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Guide to allocation of Funds
§ Private Sector: At least 20% of available funds § Need for future leveraging and co-finance/
matching funding.
§ Districts: § Emphasis on large integrated (Rural
Development) projects with the potential to target access to at least 10% of resources.
25/08/15
• Performance based grants for R&D, proof-of-concept and demonstration
• $300,000 ceiling and 25% match funding
Innovation Grant
• Developed with Rwanda’s Development Bank (BRD)
• Below market interest rate (16%) of 11.45%
Line of Credit
FONERWA Private Sector instruments
Current Implementation Status
17 under implementation
22 proposals approved
74 Full Proposals developed
1089 concept notes submitted
Around US$ 32 M committed from a total
fund US$50 M approved (64%
committed)
7 Central government 6 Districts
7 private sector 1 NGO
1 District/NGO
Since FMT was put in place two years ago: § Solid governance
structures § Instruments in place to
support private sector projects
§ Six calls for proposals
Governance Structure
Fund%Management%Commi/ee%(FMC)%
Fund%Technical%Commi/ee%(FTC)%
Fund%Secretariat,%%Fund%Management%Team%
Day;to;day%fund%management,%Technical%assistance,%M&E,%Resource%mobilisaBon,%iniBal%screening%of%
concept%notes%(PPDs)%
Technical%Advice,%proposal%screening,%recommendaBons%to%FMC%
GoR%Chair,%DP%Co;Chair%and%members%(DPs,%GoR%ministry%reps%,%technical%experts)%
GoR%Chair,%DP%Co;Chair%and%members%(DPs,%GoR%ministry%reps%(DG%level),%CSO%rep,%
private%sector%rep)%
Observers%
Decides%funding%prioriBsaBon,%takes%final%funding%decisions%and%%provides%
strategic%oversight%
Call;down%consultancy%
pool%
AddiBonal%support%for%proposal%screening%and%technical%assistance%
Challenges Lack of Capacity and Poor Quality submissions Limited financial instruments for PS Overwhelming expectations: Demand for alternative funds! Implementation and Sustainability
Corrective measures Continuously improve and streamline the application process Private sector engagement Strategic technical Assistance Risk Management Responses
Way forward
Technical Support from subject matter Specialists Lessons Learned: STRATEGIC ORIENTATION A strong Monitoring and Evaluation System
Dealing with the challenges
Fund is new but has so far registered significant progress – considered a world leader
Strategic role in Rwanda’s green economy and climate responsive development – Green City Pilot!
Aligning with national strategic focus: Expand and diversify Private Sector Instruments to accelerate green investments
Development partnerships critical in the growth of the fund
Transformational funds - new, additional, flexible and predictable.
The future of the fund
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THANK YOU