By Inspirer staff.
On Thursday, the ministry of environment hosted a breakfast meeting to discuss about developing a green investment bank for Rwanda.
The meeting was hosted with Rwanda Green Fund, UNDP, and Coalition for Green Capital with aim to boost climate finance in Rwanda
The bank aims to address market gaps and promote private finance with financial tools, strengthen climate finance in Rwanda by empowering the country to better access international non-grant finance and work with banks to build their green finance capacity.
Rwanda Green Fund has been working with those partners to scope out the design of a Green Bank for Rwanda to promote private investments by unlocking and expanding private investment like debt and equity in local green sectors.
“Rwanda has an ambitious climate action agenda to build resilience to climate change and foster green growth. However, current investment trends show a financing shortfall to meet our climate adaptation and mitigation needs, especially in the private sector,” said Dr Jean D’arc Mujamariya, they minister of environment
We are counting on the support and engagement of everyone present today to make the bank a reality and ensure it is a success for generations to come, she said.
She tanked UNDP, and Coalition for Green Capital for supporting Rwanda on this journey to develop a green investment bank
“Finance has become the centre of climate action policies and strategies. That’s why we need to expand the capacity of the Green fund and take advantage of new opportunities. A green investment bank will act as a force multiplier and fast-track green growth.
A Green Investment Bank will support us to achieve national targets and our climate action plan. The bank is designed to address market needs, understand local risks & use financing tools such as debt & equity to drive private investment,” she said.
Green banks typically use a blended finance model to support development.
Capitalization comes from a variety of public and private sources, including donor nations, climate funds and national treasuries.
She said development of these and other sectors must be approached from a climate resilience perspective, and having a green investment bank will no doubt bridge the financing gap in our market,” she said.
Green Growth has become a central to Rwanda’s transformation agenda.
The country’s long-standing commitment to the environment has been translated into concrete impact such as Umuganda, terracing, banning single use plastics and investing in conservation and renewable energy.
“However, we do not have enough innovative and scalable ventures and the few that do exist are not able to achieve the country’s climate agenda alone. As a result, we are searching for ways to promote private sector led adaptation and mitigation,” she said.
This includes mainstreaming climate in priority sub-sectors such as biomass replacement, green cities, sustainable transport, waste, water, renewable energy and climate-smart agriculture – all of which are critical for Rwanda’s economic transformation. Mujawamariya said.
Models indicated that Rwanda could lose 1% of GDP annually to climate change related losses by 2030 & an even greater proportion thereafter.
The impact of recent flooding events & tragic loss of lives shows us that these were not simply predictions, but also a warning to act.
“When we first developed our Green Growth and Climate Resilience Strategy ten years ago, the future economic cost to effectively address climate change was estimated to be 300 million dollars per year,” the minister added.
The National Strategy for Transformation also calls for the private sector to accelerate inclusive economic growth and transition Rwanda towards a green economy. Our goal is to create more than 200,000 decent, off-farm and hopefully green jobs annually