governance & climate change: the case of ......costs for climate adaptation " rwanda is...

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

Click to edit Master title style Click to edit Master subtitle style Costs for Climate Adaptation

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

Click to edit Master title style Click to edit Master subtitle style Strategic framework

§  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