Rwanda launches new EUR 46M facility to finance public sector climate action
Rwanda has launched a new facility that will invest in climate action led by the public sector on the sidelines of COP27 in Sharm El-Sheik, Egypt. The facility, which will be managed by the Rwanda Green Fund, has been capitalised through a grant of EUR 46 million from the Federal Republic of Germany through the Rwandan-German Climate and Development Partnership.
Known formally as the NDC Facility, the new funding will be available to government institutions working to implement Rwanda's climate action plan, also known as the Nationally Determined Contribution (NDC) to the Paris Agreement.
The NDC Facility will be housed at the Rwanda Green Fund and act as the financial driver of Rwanda’s climate action plan. It also aims to attract additional climate finance from investors and development partners looking to be part of Rwanda’s green growth journey.
“Climate action sits at the heart of Rwanda and Germany’s development partnership. This NDC Facility is a game-changer as we implement our ambitious response to climate change and we are grateful for Germany’s support. Through the Rwanda Green Fund, public institutions will have access to new financial resources to put climate change front and centre of their work,” said Rwanda’s Minister of Environment, Dr Jeanne d’Arc Mujawamariya.
Rwanda’s NDC climate action plan aims to reduce greenhouse gas emissions by 38% by 2030 compared to business as usual. This is equivalent to an estimated mitigation of up to 4.6 million tonnes of carbon dioxide equivalent (tCO2e).
The cost of the plan is estimated at USD 11 billion, made up of USD 5.7 billion for mitigation and USD 5.3 billion for adaptation. It is expected that 40% of this investment will come from domestic sources and 60% from external sources across all sectors.
“Rwanda has shown remarkable leadership in responding to climate change and the German Government is pleased to once again join hands with Rwanda as the country builds a green and climate resilient nation. This new facility will enable the public sector to better respond to climate change. We look forward to seeing the NDC Facility grow in the years to come through the Rwandan-German Climate and Development Partnership and additional support from other development partners,” said Svenja Schulze, Federal Minister of Economic Cooperation and Development, Germany.
At the event, Rwanda and Germany also signed a Joint Declaration of Intent on Climate Research and Science Cooperation. The declaration will facilitate scientific exchange between Rwanda and Germany, supporting scientific analyses of the impacts of climate change.
About the Rwandan-German Climate and Development Partnership
Germany and Rwanda established the Climate and Development Partnership in March, 2022, for which Germany has made available a total of EUR 202 million to date. The partnership will enable climate initiatives in the areas of mitigation and adaptation as well as sustainable urban development. The work of the partnership is based on Rwanda's NDC Implementation Framework. Learn more here.