FP221

Rwanda is considered highly vulnerable to climate change in both mitigation and adaption aspects. Faced with multiple climate hazards including more intense rainfall, shifting seasonal temperatures, droughts, and landslides, Rwanda has set ambitious climate and development goals to achieve a low-carbon emission, climate resilient economy. The long-term financial impact of the COVID-19 pandemic has left the country with limited financial resources allocated to vital climate mitigation and adaptation projects inside its borders, which threatens progress on Sustainable Development Goals.  

The RGIF project aims to strengthen Rwanda’s ownership of climate finance and address the market barriers that impede private sector investment from flowing to climate action. RGIF will create two financing facilities to support reduction of the risks associated with private sector projects in climate change mitigation and adaptation. One facility will offer grants and reimbursable grants to enhance the feasibility of climate projects, while the other facility will provide loans directly to green projects. Both facilities will focus on sectors prioritised by Rwanda including renewable energy, climate-smart agriculture, water-efficient systems, green buildings, and clean transportation.