7 July GOVERNMENT OF THE REPUBLIC OF RWANDA G20 DEVELOPMENT WORKING GROUP (DWG) WORKSHOP ON INCLUSIVE GREEN GROWTH Moscow, Russia Presentation: Mobilisation of private resources for financing inclusive green growth

Presentation Outline 1 1.Country context. 2.Policies, Legislations, strategies and programs for Private Green Investments 3.Market failures and barriers hampering Green investments 4.Current Initiatives and Achievements 5.Challenges and opportunities for Green Private Investment 6.Role of International Community to mobilize private investment for green growth 7.Rwanda’s Green Growth Strategy 8.Rwanda Fund for Environment and Climate Change (FONERWA)

2 Rwanda: A country of a thausand Hills

RWANDA CONTEXT RWANDA CONTEXT  Rwanda is a small, hilly, landlocked country in East Africa with the highest population density in Africa.  It has experienced an average GDP growth rate of 8.5% in the past five years.  Rwanda’s collective vision for development is embodied in Vision 2020, which seeks to transform the country from a subsistence agriculture economy to a knowledge based middle income economy by  Export revenues are dominated by minerals, tea and coffee while services and agriculture contribute 81% of GDP.  Tourism has recently become the largest foreign exchange earner.  As the population g r o w s a n d u r b a n i s a t i o n a n d industrialisation increase, more and more pressure is placed on the natural resources in Rwanda, notably land, water and forests.  Rwanda is experiencing one of the most exciting and fastest periods of growth and socio-economic progress in its history. It was the tenth fastest growing economy in the world during the decade from

RWANDA CONTEXT RWANDA CONTEXT  At the same time more than a million people have been lifted out of poverty. Population growth is stabilising and the country is making great strides towards achieving the MDGs and middle income status.  However, there has been insufficient involvement of the private sector in some areas. This is attributed to the quality of policy dialogue and engagement of private sector in implementation.  Rwanda is determined to pursue a ‘green economy’ approach to economic transformation. The medium term strategy, has focused on:  development of sustainable cities and villages.  piloting a green city,  piloting a model mine,  attracting investors in green construction,  Interventions on green urbanisation and the promotion of green innovation in industrial and private sectors. 4

National policy and strategic orientation for Private Green Investments National policy and strategic orientation for Private Green Investments  Vision 2020, MDGs, 7YGP & EDPRS II ( )  Policies: Environment and Natural Resources (ENR); Economic and other sectors  Legislations: Organic Law on environment, Land law, Forest law, Mining law, Water law  National Strategy for Climate Change and Low Carbon Development (Green Growth and Climate Resilient Strategy)  Cross sectoral in scope and includes a sustainable financing mechanism for environmental sustainability, climate change and green growth  Private Sector Development Strategy 5

Market failures and barriers hampering Green investments Market failures and barriers hampering Green investments  Limited investment in green economy led business opportunities such as: Renewable energy, energy and water efficient technologies, low Carbon transportation systems such as railways;  Limitations of technology transfer such as smart irrigation systems;  Limited capacity and overall knowledge of the economic impacts of climate change and green economy 6

Current Initiatives and Achievements 7  Master plans: Land; Kigali City and Water Resource and Irrigation  Drive towards energy efficiency: methane extraction and geothermal exploration  Environmentally sensitive packaging products  National policy on Ban of Plastic Bags  Sustainable financing: Rwanda Environment and Climate change Fund (FONERWA)  Clean Development Mechnism (CDM)  Sustainable agriculure systems and practices  One cow per family program  Soil erosion control measures  Motor Vehicle Inspection Centre to regulate emmissions

Challenges and opportunities for Green Private Investment 8 ChallengesOpportunities Fossil fuel still predominant source of Energy High potential of Hydro, Methane gas, Geothermal, etc… Low investment for Private Sector initiatives Public Private Partnership Public Private Partnership FONERWA presents financing options FONERWA presents financing options Good environment for investment Good environment for investment High Population growth Public awareness and sensitization coupled with creation of non-agricultural employment (Green jobs) Dependancy on Natural Resources Skills development through education will attract investors to create more jobs Lack of clean technologies Chances to benefit from CDM and NAMA for technology transfer. Regional hormonization of environmental regulations Harmonization efforts of EAC legal and regulatory frameworks

Other critical opportunities for private sector based green investments  The greening of industry is supported by the Rwanda Resource Efficient and Cleaner Production Centre (RRECPC) and the National Industrial Policy.  The refinement of Public Private Dialogue and the adoption of private sector investment targets promotes private sector contribution to sustainable economic growth.  The Environment and Climate Change Innovation Centre will support development and transfer of promising ‘green’ technologies that are likely to provide large-scale environmental and economic benefits.  Rwanda Fund for Environment and Climate Change (FONERWA), the sustainable financing mechanism for Green growth and Climate Resilient Strategy will provide financial support to private sector led green initiatives. 9

Green Economy Success Stories 10  Rehabilitation of Rugezi Wetland Complex  Tourism revenue sharing to benefit local communities  Ban on plastic bags use  Successful Green village pilots has demonstrated poverty reduction benefits

Green Growth Strategy Programmes of Action  The strategy provides opportunities to attract private sector investments:  in Sustainable land use management, Integrated Water Resource Management and climate compatible mining  Sustainable forestry, agroforestry and biomass  Sustainable intensification of small-scale farming and agricultural diversity of markets  Low Carbon Energy Grid and Small-scale energy access in rural areas  Disaster Management,climate predictions and Health  Green industry and private sector development, Ecotourism, conservation and PES  Resilient transport systems, Low carbon urban systems 11

12 MURAKOZE! THANK YOU VERY MUCH!