RWANDA – The Rwanda Climate Finance Partnership, launched at the Paris Summit for a New Global Financing Pact has propelled innovative climate action, fortified by fresh contributions from the Government of Rwanda.
Supported by a consortium comprising Agence Française de Développement (AFD), the European Union and Team Europe, the European Investment Bank (EIB), the International Finance Corporation (IFC), German Cooperation via KfW Development Bank, and the Italian Cooperation system with Cassa Depositi e Prestiti (CDP), this partnership aligns with existing collaborative endeavors like the Rwandan-German Climate and Development Partnership and ongoing initiatives with the World Bank.
The official announcement occurred on the sidelines of the COP28 UN Climate Change Conference in Dubai, UAE.
The Rwanda Climate Finance Partnership’s goal is to foster public-private partnerships aimed at amplifying climate finance.
Made possible through the country’s Resilience and Sustainability Facility (RSF) arrangement with the International Monetary Fund (IMF), the IMF is anticipated to disburse an additional US$48.5 million in budget support post the approval of Rwanda’s second review of the RSF arrangement by the IMF Executive Board in mid-December.
In a testament to its dedication to the RSF-backed climate agenda, the Government of Rwanda revealed two additional reform measures supported by the RSF.
These involve enhanced risk analysis of State-Owned Enterprises and Public-Private Partnerships susceptible to climate change and the adoption of a green taxonomy tailored to Rwanda’s NDC climate action plan.
Amidst the COP28 side event, key milestones of this partnership were highlighted:
The Government of Rwanda, through the Ministry of Finance and Economic Planning, will inject US$40 million to bolster Ireme Invest, the nation’s private sector green investment facility.
A significant US$21.70 million loan and a technical assistance agreement between EIB and the Development Bank of Rwanda have been inked to bolster Rwanda’s green transition through Ireme Invest.
This loan marks the initial tranche of an anticipated US$108.50 million financing package unveiled at the Paris Summit.
The technical assistance is backed by the EIB Greening Financial Systems program, supporting the NDC Partnership and financed by the International Climate Initiative Fund and German Federal Ministry of Economic Affairs and Climate Action.
Additionally, at COP28, EIB outlined a new US$108.50 million agricultural climate finance partnership with the Bank of Kigali to support smallholders and agri-businesses across Rwanda affected by climate change.
The Rwanda Climate Finance Partnership, Rwandan-German Climate and Development Partnership, and ongoing collaborations with the World Bank and other partners exemplify the prowess of collaborative efforts in reshaping the global climate finance landscape.
This extends beyond small-scale projects, forging significant long-term investments that harness existing mechanisms to enable public-private partnerships and attract private-sector investments.
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