In a bid to fund climate change resilience projects, The government of Rwanda plans to create a financial institution solely dedicated to this function.
According to Doreen Nakure, communication specialist at Rwanda Green Fund (FONERWA), the Fund has contracted experts who will come up with a clear picture of the bank’s processes.
Prospectively named the Rwanda Catalytic Green Investment Bank (RCGIB), a coalition for Green Capital study currently underway, will help determine the institution’s initial capital injection.
The Rwanda Green Bank proposal runs on the heels of South Africa’s, which finances green projects undertaken within the country with an initial balance sheet of over $100 million.
“This initiative aims at promoting green investments in Rwanda, with a unique and specific focus on financing, unlocking and expanding private investment like debt and equity in the local green sectors,” Nakure adds.
The initiative, is being designed with a set of guiding principles particularly independent investment decision-making, ability to raise financing from Development Financial Institutions as well as the private sector based on best practices from international Green Banks and facilities, as well as strategic input from FONERWA and other market participants.
While it is yet to be declared a state or private-owned bank, the Green Bank will finance both public and private green projects as long as they meet the set criteria.
Over 138,000 green jobs have been created by FONERWA since its inception in 2013 with the fund enabling the protection of over 21.1 million hectares of land against erosion.
At least 41,116 hectares were covered with forestry and agroforestry while 26.3 million hectares of watersheds and water bodies were protected.
The green fund says 65,340 households have since experienced access to clean energy as 65 million tonnes of global warming gases (carbon emissions) were avoided.
Rwanda looks to develop a climate-resilient and low carbon economy by 2050.