7 July 20137 July 2013

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GOVERNMENT OF THE REPUBLIC GOVERNMENT OF THE REPUBLIC OF RWANDA OF RWANDA

G20 DEVELOPMENT WORKING GROUP (DWG) G20 DEVELOPMENT WORKING GROUP (DWG) WORKSHOP ON INCLUSIVE GREEN GROWTHWORKSHOP ON INCLUSIVE GREEN GROWTH

Moscow, RussiaMoscow, Russia

Presentation: Presentation: Mobilisation of private resources Mobilisation of private resources

for financing inclusive green for financing inclusive green growthgrowth

Presentation OutlinePresentation Outline

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1.1. Country context.Country context.2.2. Policies, Legislations, strategies and Policies, Legislations, strategies and

programs for Private Green Investments programs for Private Green Investments 3.3. Market failures and barriers hampering Market failures and barriers hampering

Green investmentsGreen investments4.4. Current Initiatives and AchievementsCurrent Initiatives and Achievements5.5. Challenges and opportunities for Green Challenges and opportunities for Green

Private Investment Private Investment 6.6. Role of International Community to mobilize Role of International Community to mobilize

private investment for green growth private investment for green growth 7.7. Rwanda’s Green Growth StrategyRwanda’s Green Growth Strategy8.8. Rwanda Fund for Environment and Climate Rwanda Fund for Environment and Climate

Change (FONERWA)Change (FONERWA)

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Rwanda: A country of a thausand Rwanda: A country of a thausand Hills Hills

RWANDA CONTEXTRWANDA 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 2020.

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 2000. 4

RWANDA CONTEXTRWANDA 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.

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National policy and strategic orientation National policy and strategic orientation for Private Green Investments for Private Green Investments

Vision 2020, MDGs, 7YGP & EDPRS II (2013-2018)Vision 2020, MDGs, 7YGP & EDPRS II (2013-2018) Policies: Environment and Natural Resources Policies: Environment and Natural Resources

(ENR); Economic and other sectors(ENR); Economic and other sectors Legislations: Organic Law on environment, Land Legislations: Organic Law on environment, Land

law, Forest law, Mining law, Water law law, Forest law, Mining law, Water law National Strategy for Climate Change and Low National Strategy for Climate Change and Low

Carbon Development (Green Growth and Climate Carbon Development (Green Growth and Climate Resilient Strategy)Resilient Strategy) Cross sectoral in scope and includes a sustainable Cross sectoral in scope and includes a sustainable

financing mechanism for environmental sustainability, financing mechanism for environmental sustainability, climate change and green growthclimate change and green growth

Private Sector Development Strategy Private Sector Development Strategy 6

Market failures and barriers hampering Market failures and barriers hampering Green investmentsGreen 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

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Current Initiatives and Achievements Current Initiatives and Achievements

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Master plans: Land; Kigali City and Master plans: Land; Kigali City and Water Resource and Irrigation Water Resource and Irrigation

Drive towards energy efficiency: Drive towards energy efficiency: methane extraction and geothermal methane extraction and geothermal explorationexploration

Environmentally sensitive packaging Environmentally sensitive packaging products products National policy on Ban of Plastic Bags National policy on Ban of Plastic Bags

Sustainable financing: Rwanda Sustainable financing: Rwanda Environment and Climate change Fund Environment and Climate change Fund (FONERWA)(FONERWA)

Clean Development Mechnism (CDM)Clean Development Mechnism (CDM) Sustainable agriculure systems and Sustainable agriculure systems and

practicespractices One cow per family programOne cow per family program Soil erosion control measuresSoil erosion control measures

Motor Vehicle Inspection Centre to Motor Vehicle Inspection Centre to regulate emmissionsregulate emmissions

Challenges and opportunities for Challenges and opportunities for Green Private Investment Green Private Investment

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ChallengesChallenges OpportunitiesOpportunitiesFossil fuel still predominant Fossil fuel still predominant source of Energysource of Energy

High potential of Hydro, Methane High potential of Hydro, Methane gas, Geothermal, etc…gas, Geothermal, etc…

Low investment for Private Low investment for Private Sector initiativesSector initiatives

• Public Private PartnershipPublic Private Partnership• FONERWA presents financing FONERWA presents financing optionsoptions• Good environment for investment Good environment for investment

High Population growthHigh Population growth Public awareness and sensitization Public awareness and sensitization coupled with creation of non-coupled with creation of non-agricultural employment (Green agricultural employment (Green jobs)jobs)

Dependancy on Natural Dependancy on Natural ResourcesResources

Skills development through Skills development through education will attract investors to education will attract investors to create more jobscreate more jobs

Lack of clean technologiesLack of clean technologies Chances to benefit from CDM and Chances to benefit from CDM and NAMA for technology transfer. NAMA for technology transfer.

Regional hormonization of Regional hormonization of environmental regulationsenvironmental regulations

Harmonization efforts of EAC legal Harmonization efforts of EAC legal and regulatory frameworksand regulatory frameworks

Other critical opportunities for Other critical opportunities for private sector based green private sector based green investmentsinvestments

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.

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Green Economy Success StoriesGreen Economy Success Stories

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Rehabilitation of Rugezi Rehabilitation of Rugezi Wetland ComplexWetland Complex

Tourism revenue sharing to Tourism revenue sharing to benefit local communitiesbenefit local communities

Ban on plastic bags useBan on plastic bags use Successful Green village Successful Green village

pilots has demonstrated pilots has demonstrated poverty reduction benefitspoverty reduction benefits

Green Growth Strategy Programmes of Green Growth Strategy Programmes of ActionAction

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

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MURAKOZE!MURAKOZE!THANK YOU VERY MUCH!THANK YOU VERY MUCH!