Rwanda-Economy-Bonds

Rwanda launches new €46m facility to finance public sector climate action

APA - Kigali (Rwanda)

Rwanda launched a new facility that will invest in climate action led by the public sector on the sidelines of COP27 in Sharm El-Sheik, Egypt.

Known formally as the NDC Facility, the new funding will be available to government institutions working to implement Rwanda's climate action plan, also known as the Nationally Determined Contribution (NDC) to the Paris Agreement.


The NDC Facility will be housed at the Rwanda Green Fund and act as the financial driver of Rwanda’s climate action plan. It also aims to attract additional climate finance from investors and development partners looking to be part of Rwanda’s green growth journey.


"Climate action sits at the heart of Rwanda and Germany’s development partnership. This NDC Facility is a game-changer as we implement our ambitious response to climate change, and we are grateful for Germany’s support. Through the Rwanda Green Fund, public institutions will have access to new financial resources to put climate change front and centre of their work,” said Rwanda’s Minister of Environment, Dr Jeanne d’Arc Mujawamariya.

The facility, which will be managed by the Rwanda Green Fund, has been capitalized through a grant of €46 million from the Federal Republic of Germany through the Rwandan-German Climate and Development Partnership, according to a communique obtained Tuesday.

Rwanda’s NDC climate action plan aims to reduce greenhouse gas emissions by 38% by 2030 compared to business as usual. This is equivalent to an estimated mitigation of up to 4.6 million tonnes of carbon dioxide equivalent (tCO2e).


The cost of the plan is estimated at USD 11 billion, made up of $5.7 billion for mitigation and $5.3 billion for adaptation. It is expected that 40% of this investment will come from domestic sources and 60% from external sources across all sectors.



CU/abj/APA

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