Inside of our Resource Mobilization Strategy: Sectors that still require more funding
It is now close to nine years since the Rwanda Green Fund-FONERWA was established with a mandate to mobilize the financial resources for green investments. The nine years have been of a great experience as the Fund has been trying to ensure it plays a vital role to the country’s resource mobilization efforts in collaboration with other Government counterparts.
So far the Fund counts 44 projects ranging from different sectors that received its financial support. All these projects have greatly contributed to Rwanda’s efforts in environmental conservation and mitigating climate change as well as adapting to its effects.
To read more on the Fund’s achievements, click on the link: http://www.fonerwa.org/blog/fonerwa-forefront-green-investment-rwanda-lo...
The recently Rwanda’s updated National Determined Contribution (NDC) clearly underpins the Country’s commitment towards environmental protection and climate change issue as the country remains keen to build a strong climate resilient and green economy.
The Rwanda's ambitious National Determined Contribution thus commits to a 38% reduction in greenhouse gas emissions by 2030. To achieve this, the combined funding estimated at USD 11 billion is required.
As the national Fund and with its efforts to ensure effective delivery to its mandate, the Rwanda Green Fund-FONERWA developed a resource mobilization strategy that mainly focuses on different areas that have potential to attract more investments domestically and internationally.
More funding is needed
Over the last 8 years, the Fund has been deploying investments and resources across several key sectors namely biomass replacement, climate-smart agriculture, renewable energy, green cities, sustainable transport, waste, water and others.
In line with its resource mobilization strategy, there are, however, sectors that still need more funding to ensure the Country remains strong in achieving its climate action targets.
For instance, the biomass replacement requires $240 million of investment between 2018 and 2024 with demand growing by 52% to $365m between 2024 and 2030.
A nationwide program to increase access to cooking gas (LPG) to reduce dependence on biomass also needs $49m in grant co-financing delivering benefits to over 1.1 million households. According to the National Strategy for Transformation, the country seeks to reduce dependency on woody biomass for energy to 42% by 2024.
The Sustainable transport needs over $2.2 billion to upgrade elements of the road network to be more climate resilient and improve connectivity. Over $1 billion is also needed to convert 20 per cent of personal motor vehicles to electric vehicles, $150 million to convert 20 per cent of buses into electric vehicles by 2030, the fund shows.
Still on the needed funding, the waste management sector is forecast to require $204m of investment between 2018 and 2024 with an increase of 47 per cent to $300m between 2024 and 2030.
Other projects that need funding include the green urbanization for sustainable development in Kigali and major secondary cities over the next 5 years which need over $250 million and the innovative solution to produce 5,000 tonnes of organic manure that requires financing of up to $20m to establish a large facility.
More collaboration and efforts are needed
Commenting on the above required funding, the Chief Executive Officer of the Rwanda Green Fund-FONERWA, Teddy MUGABO MPINGANZIMA says that the Funds appreciates all kinds of support from different partners in the last years, adding that continued collaboration is needed to ensure Rwanda achieves its climate ambitious targets.
‘‘I believe that there is need for concerted efforts from different sectors and partners, both national and international to ensure Rwanda’s commitment s are achieved. For instance, as we all know, the private sector has been and will continue to be the engine of Rwanda’s socio-economic transformation. This means that it has also to be a key player for green investments in Rwanda,’’ says the CEO.