cc-rwanda country mapping-final (1)

REPUBLIC OF RWANDA Ministry of Natural Resources (MINIRENA)

Integrating Climate Change Finance into SLM Investment Strategies Rwanda Country Mapping

Prepared by EcoSecurities Consulting and Best Associated Consultants (BAC)

Final Version

June 2011

Rwanda Country Mapping

Page 2 of 45

This document has been produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.

of 45

Table of contents

1 Introduction ........................................................................................................ 6 1.1 Background: climate change and land degradation in Rwanda ............................... 6 1.2 Objectives.................................................................................................................... 8

2 Analysis of the current situation in Rwanda ................................................... 9 2.1 Policies and programmes in place to address climate change and land degradation9 2.2 Current investment flows to climate change mitigation and adaptation projects in the agriculture, rural and land use sector ................................................................................28 2.3 Identification of opportunities and barriers to funding mitigation and adaptation projects in Rwanda ...........................................................................................................32

3 Conclusions and recommendations .............................................................. 36 3.1 How to overcome the implementation barriers of mitigation and adaptation activities relevant to the AFOLU sector in Rwanda ..........................................................................36 3.2 Where the Government of Rwanda could focus efforts to develop climate change projects benefiting SLM ....................................................................................................38

4 References........................................................................................................ 43


Page 4 of 45

List of Acronyms

ADB/AfDB African Development Bank AFOLU Agriculture, Forestry and Landuse BAC Best Associated Consultants BAD Banque Africaine de Dveloppment CDM Clean Development Mechanism DFID Department for International Development DNA Designated National Authority EDPRS Economic Development and Poverty Reduction Strategy EC European Commission EICV Enqute Intgrale sur les Conditions de vie des Mnages FAO Food and Agriculture Organization FCD Focus Group Discussion FONERWA Fonds National de lEnvironnement au Rwanda GHG Greenhouse Gases GEF Global Environmental Facility GoR Government of Rwanda IDA International Development Agency IFAD International Fund for Agricultural Development IMF International Monetary Fund ISAR Institut des Sciences Agronomiques du Rwanda MINALOC Ministry of Local Government Community Development and Social

Affairs MINAGRI Ministry of Agriculture and Animal Resources MINECOFIN Ministry of Economic Planning and Finance MINELA Ministry of Environment and Land MINIFOM Ministry of Forestry and Mines MININFRA Ministry of Infrastructure MINIRENA Ministry of Natural Resources MINITERE Ministry of Lands, Environment, Forestry , Water and Mines NAFA National Forestry Authority NAP Nation al Action Plan to combat Desertification and Land Degradation

in Rwanda NAPA National Adaptation Programmes of Action NGOs Non Governmental Organizations NLC National Land Centre ODA Overseas development assistance OGMR Office de Gologie et Mines du Rwanda PRSP Poverty Reduction Strategy Programme RARDA Rwanda Animal Resources Development Authority RADA Rwanda Agricultural Development Authority RAP Regional Action Plan REMA Rwanda Environment Management Authority RHODA Rwanda Horticulture Development Authority SLM Sustainable Land Management SRAP Sub- regional Action Programme UN United Nations UNCCD United Nations Convention to Combat Desertification UNICEF United Nations Childrens Fund UNDP United Nations Development Programme


Page 5 of 45

UNEP United Nations Environment Programme UNFCCC United Nations Framework Convention on Climate Change USAID United States Agency for International Development USD United States Dollars WB World Bank


Page 6 of 45

1 Introduction The Government of Rwanda ratified the United Nations Convention to Combat Desertification (UNCCD) in October 1998 and is elaborating its National Action Programme to Combat Desertification (NAP), which has been validated in November 2009. In support of the future implementation of the NAP/UNCCD, the Global Mechanism of the UNCCD and the United Nations Development Programme (UNDP) are supporting the Government of Rwanda in the elaboration of an Integrated Financing Strategy (IFS) for Sustainable Land Management (SLM) in Rwanda. The IFS aims at identifying and assessing all possible sources of finance that can strengthen NAP implementation. The present report contributes to this process by assessing the availability of climate change finance for SLM and NAP implementation.

1.1 Background: climate change and land degradation in Rwanda Rwanda is a small landlocked mountainous country in Central Africa, bordered by Uganda, Tanzania, Burundi and the Democratic Republic of Congo. It extends over just 26,338 km2, and is home to an estimated 9 million people, which makes it the most densely populated country in Africa. Despite recently enjoying strong economic growth rates (USAID, 2008), Rwanda ranks 152nd of 169 countries according UNDPs 2010 Human Development report (UNDP, Human Development Report 2010. The real wealth of nations: pathways to human development, 2010). Nearly 90% of the population relies on subsistence agriculture and the majority of the population lives on less than USD 1.25 a day (UNDP, Human Development Report 2010. The real wealth of nations: pathways to human development, 2010). The four major causes of poverty in Rwanda bear a direct link with the environment. These have been identified as follows(Ubudehe Survey,2006). Causes % Share of Respondents Lack of land 49.5 Poor soils 10.9 Drought/weather 8.7 Lack of livestock 6.5

Lack of land, soil infertility and lack of livestock are a direct result of population pressure, land degradation and soil erosions, and are further exacerbated by changing weather conditions linked to climatic changes already being observed in the country.

1.1.1 Climate change in Rwanda

Rwanda contributes to 5, 010.4GgCO2e (UNFCCC, Emissions Summary for Rwanda, 2005, Second National Communication) of global GHG emissions, if greenhouse gas (GHG) emissions and removals resulting from the forestry sector are not taken into account. The agriculture sector is the greatest contributor to these emissions (78%), followed by the energy (17,8%), industrial processes (3%), waste (0.9%) and land use and forestry (0.2%) sectors. The forestry sector results in a net absorption of 8545 Gg CO2e. Hence, Rwandas overall contribution to global GHG emissions is negative at 3534.6 Gg CO2e (UNFCCC, Emissions Summary for Rwanda, 2005, Second National Communication).


Page 7 of 45

Despite not contributing to climate change, Rwanda is already experiencing its adverse impacts. Average yearly temperatures have increased by 0.9C between 1971 (19.8C) and 2007 (20.7C) (REMA, 2010). Climate-related shocks like drought and flooding are becoming more regular and are all the more severe as the majority of the population relies on small-scale agriculture and ecosystem services for their livelihoods. The Eastern and South Eastern regions (Nyagatare, Gatsibo, Bugesera ,Kamonyi and Ruhango Districts) have been severely affected by prolonged droughts, while the Northern and Western regions (Musanze, Gakenke, Burera, Nyabihu, Nyaruguru and Gicumbi Districts) have been experiencing excessive rainfall resulting in erosion, flooding and landslides (Twagiramungu, 2006). These extreme climate events have had a devastating effect on agricultural productivity. In the 2008 harvests, for instance, the droughts destroyed just-planted seeds and in some cases delayed planting so much that crops then became highly vulnerable to dry spells late in the season in a way that affected their productivity (REMA, Rwanda State of Environment and Outlook, 2009).

Rwanda signed the United Nations Framework Convention to Combat Climate Change (UNFCCC) in 1995 and the Kyoto Protocol in 2004. It ratified the UNFCCC in August 1998 and the Kyoto Protocol in February 2006.

1.1.2 Land degradation in Rwanda Heavy soil loss is one of the key contributors to land degradation in Rwanda. About half of Rwandas farm land has shown evidence of modest to severe erosion (REMA, Rwanda State of Environment and Outlook, 2009). Overall the country is estimated to be losing 1.4 million tones of soil per year. Soils are exhausted by continuous farming by farmers who have limited, if any alternatives. Soil loss has a significant impact on the productivity of the land and can result in farm land turning into waste land. It is estimated that about 40,000 people every year are food insecure as a direct effect of soil erosion (REMA, Rwanda State of Environment and Outlook, 2009).

Prevailing agricultural practices on the slopes of the hills and deforestation also result in land degradation and soil erosion. About 40% of Rwandas land is classified as having a very high erosion risk with about 37% requiring soil retention measures before cultivation and only 23.4% of the countrys lands not prone to erosion (FAO, Accessed Nov 2010). While it is recommended that land areas on slopes greater than 5% need erosion control, the reality in Rwanda is that crops are grown wherever possible, including slopes as steep as 55%. Over 86% of the agricultural land is equipped with anti-erosion techniques, such as protective grass strips. The province with the highest anti- erosion techniques is Northern Province leading at around 93.1%, followed by Southern Province at 92.3%, then by the Western Province at 87.5%, Eastern at 80.06% and Kigali City comes last at 79.8%.

The lack of a human settlement development framework has also resulted in increased land degradation. Residential areas in urban centres have expanded, with land being poorly managed resulting in environmental degradation. Domestic and industrial energy demands have also indirectly contributed to soil erosion and land degradation - much of the countrys energy requirements are met by crop residues and fuel wood. The use of crop residues limits the extent to which they can be used to conserve soil moisture and fertility. Deforestation on


Page 8 of 45

the other hand leads to extensive soil erosion and in some instances floods and landslides (REMA, Rwanda State of Environment and Outlook, 2009).

Rwanda signed the United Nations Convention to Combat Desertification (UNCCD) in June 1995 and ratified it in October 1998. The Convention entered into force in January 1999. Rwanda has recently prepared its National Action Programme (NAP) under the UNCCD (see Section 2.1.1). The NAP will form a key part to UNCCD implementation in Rwanda, and, as explained in more detail in the following chapter, its strong inter-linkages with climate change make it an even more useful tool towards the sustainable management of natural resources.

1.1.3 Linkages between climate change and land degradation in Rwanda The correlation between climate change and land degradation in Rwanda is clear. Climate change threatens marginal lands by increasing the risk of degradation and desertification. Moreover land degradation, particularly from unsustainable agricultural and land management practices and deforestation is a major contributor to increased atmospheric GHG concentrations that are responsible for human-induced climate change. An increase in extreme weather events, such as droughts and heavy rains, resulting from global warming leads to further land degradation and this desertification process affects the climate. A number of areas exist that offer an opportunity for a synergistic approach to tackling climate change (mitigation and adaptation) and land degradation in Rwanda. These primarily relate to:

Forestry (e.g. reforestation, avoided deforestation and sustainable forest management),

Sustainable land management (SLM) and agriculture; Sustainable rural energy provision, such as through fuel-switching and energy

efficiency at the community level, and the use of biofuels; and Adaptation through enhancing ecosystem resilience and its capacity to adjust to

changes.

1.2 Objectives The objectives of this report can be summarized as follows:

Identify policies and programmes that address climate change and land degradation in Rwanda;

Map current investment flows to climate change mitigation and adaptation projects in the agriculture, rural and land use sector in Rwanda;

Identify specific opportunities and barriers to funding mitigation and adaptation projects in Rwanda;

Analyse how barriers to implementation of mitigation and adaptation activities can be overcome; and

Outline specific roles that the GM can play to help increase Rwandas access to climate change financing.


Page 9 of 45

2 Analysis of the current situation in Rwanda 2.1 Policies and programmes in place to address climate change and land

degradation

2.1.1 Linkages between NAPA, NAP and EDPRS National Adaptation Programmes of Action (NAPAs) were established by the Parties to the UNFCCC when negotiating the adaptation funds. NAPAs provide a process for countries to identify priority activities that respond to their urgent and immediate needs with regards to adaptation to climate change. In their NAPAs, countries tend to focus on adaptive capacity to climate variability. Rwanda published its NAPA in 2006.

National Action Programmes (NAP) are one of the key instruments for the implementation of the UNCCD. They are developed in the framework of a participatory approach involving the local communities. Rwanda has elaborated its NAP, which has been validated in November 2009 and is currently at approval stage with the Cabinet (the latest draft NAP has been referred to in this report).

Poverty Reduction Strategy Papers (PRSP) are documents required by the International Monetary Fund (IMF) and the World Bank before a country can be considered for debt relief with the Heavily Indebted Poor Countries (HIPC) programme. Poverty reduction papers are prepared by the member countries through a participatory process involving domestic stakeholders and external development partners, including the World Bank and IMF. PRSPs describe the countrys macroeconomic, structural and social policies and programmes over a three-year or longer period to promote broad-based growth and reduce poverty (IMF, 2010). Rwanda published its second PRSP, which Rwanda, in agreement with the World Bank, renamed as Economic Development and Poverty Reduction Strategy (EDPRS), for the period 2008 2012 in 2007. In the EDPRS, Rwanda has integrated climate change issues, especially NAPA elements, as key aspects of the programme.

A comparison of Rwandas NAPA, NAP and EDPRS is provided in Table 1.

of 45

Table 1: Comparison of Rwandas NAPA, NAP and EDPRS

NAPA NAP EDPRS Guiding principle(s)

Help Rwanda define urgent and immediate adaptation priority activities to climate change in order to obtain funds from GEF or other donors for their implementation.

Contribute to the sustainable management of natural resources for sustained socio-economic development.

Provide a medium-term framework for achieving Rwandas long-term development goals and aspirations.

Objectives Evaluate present vulnerabilities to climate change considering the socio-economic aspects and land use that exacerbate these vulnerabilities;

Identify the most vulnerable groups of population, regions and sectors;

Determine priority adaptation options and define their profiles;

Select urgent and immediate activities and projects to be implemented.

Reinforce capacities of local stakeholders and partners to ensure sustainable development and the rational use of natural resources;

Rehabilitate all areas affected by desertification and land degradation;

Improve the enforcement of existing laws and formulate new ones to manage natural resources appropriately;

Identify and adopt alternatives to lessen natural resource degradation.

Objectives embodied in three flagship programmes:

Sustainable Growth for Jobs and Exports aims to make the Rwandan business environment the most competitive in the region, thereby laying the foundations for strong private sector growth in the future;

Vision 2020 Umurenge aims to eradicate extreme poverty by 2020;

Governance aims to improve governance in several areas, including maintaining peace and security, strengthening good relationships with all countries, promoting unity and reconciliation among Rwandans, performing reforms of the justice system. And


Page 11 of 45

NAPA NAP EDPRS empowering citizens to participate and own their social, political and economic development in respect of rights and civil liberties.

Proposed priority projects/areas

1. Conservation and protection of lands against erosion and floods at district level in vulnerable regions;

2. Mastering hydro meteorological information and early warning systems for control of climate change hazards;

3. Realisation of round irrigation perimeters from water flows in vulnerable regions;

4. Assistance to districts of vulnerable regions to plan and implement conservation measures and water storage;

5. Increase the capacity of adaptation of villages imidugudu in vulnerable regions through improvement of drinking water and sanitation and alternative energy services and promotion of non-agricultural activities;

6. Increase modes of food distribution and health support to face extreme climate phenomena;

Reinforcement of the political, legislative and institutional framework to favour environmental protection;

Rational planning and use of land; Sustainable planning and management

of forests; Rational management of water

resources; Rational exploitation of mines and

quarries Improvement in agricultural techniques

and of farming on slopes ; Reinforcement of the implementation

of the national programme for grouped housing;

Promotion of sources of energy other than wood;

Creation of jobs to help the fight against poverty;

Reinforcement of the recycling programme for domestic and industrial waste;

International, regional and sub-regional

N/A


Page 12 of 45

NAPA NAP EDPRS 7. Preparation and implementation of

woody combustible substitution national strategy to combat deforestation and put a brake on erosion due to climate change.

cooperation; Research and system for post-

evaluation.

Funding mechanisms

See Table 5 Fonds National pour lEnvironnement au Rwanda (FONERWA) to be established

Traditional sources of financing, e.g. GEF, UN organizations, NGOs, and possibly some of the initiatives given in Table 5.

Combination of domestic tax and non-tax revenues

Grants External borrowing

Timelines (project implementation)

2007 - 2012 2009 - 2018 2008 - 2012

Source: MINITERE, 2006, MINIRENA, 2009, IMF, 2008

While Rwandas NAPA, NAP and EDPRS address different topics and have different priorities, a number of synergies can be identified, in line with the common overarching objectives of all the three, which is to foster sustainable development in Rwanda. These synergies include the promotion of off farm activities, support to the integrated water management system, fight against erosion, promotion of zero grazing, increasing forest cover, effort to reduce wood deficit, developing alternative energy sources, developing integrated information management system and support to ecosystem rehabilitation. These priorities are intended to either help Rwandan to mitigate or adapt to effects of climate change. The NAPA, NAP and EDPRS are implemented by national institutions under different sector policies and strategies, programmes and projects depending on their responsibilities and mandates. Although sustainable Land Management activities in Rwanda are implemented by a number of ministries and agencies, the Ministry of Agriculture and Animal Resources (MINAGRI) is the lead institution as it is the one mandated to handle land issues and is responsible for the provision of strategic orientation and policy formulation in the area of SLM. Major stakeholders involved in the SLM aspects and their respective roles are summarized in Table 2 below.


Page 13 of 45

Table 2: Mapping of Key Stakeholders and their roles and responsibilities in SLM

Key Stakeholders Role in SLM Prepare and ensure the follow up and evaluation of policies, strategies for rational exploitation and efficient land management, Environment, Water Resources and evaluate their implementation Prepare draft bills and establish norms and practices MINELA Reinforce capacities of decentralised entities in matters of land management, Water Resources and Environment

MINAGRI Initiate, develop and manage suitable programs of transformation and modernization of agriculture and livestock to ensure food security and to contribute to the national economy Develop institutional and legal frameworks, national policies, strategies and master plans relating to transport, energy, habitat and urbanism, meteorology, and water and sanitation subsectors MININFRA Initiate, develop and facilitate urban development programmes with a view to providing affordable shelter with due regard to adequate water and sanitation facilities for the population and promote grouped settlement (Imidugudu) Sensitization and involvement of decentralized structures and communities in the sustainable land management Follow up and evaluation of the functioning of decentralised administration units and reinforcement of their capacities MINALOC Coordination of the process of restructuring decentralised administrative units in order to improve their functioning, synergy and their partnership with other institutions Contribute to increase living standards of the population and human development within a sustainable environment Contribute to promote a fair and flexible labour market that rewards entrepreneurship and risk-taking behaviours for economic development Ensure an efficient and equitable tax and benefit system with incentives to work , save and invest in the development of the country Contribute to foster deep regional integration through openness to change as well as mobility of goods

MINECOFIN

Contribute to increase economic productivity, employment opportunities, investment climate, and quality public investment Prepare and ensure the follow up and evaluation of policies, strategies for rational exploitation and efficient mines and forestry management and evaluate their implementation Prepare draft bills and establish norms and practices MINIFOM Reinforce capacities of decentralised entities in matters of mines and forestry management Implement Government environmental policy

REMA Advise the Government on policies, strategies and legislation related to the management of the environment as well as the implementation of environment related international conventions Contribute towards the growth of agricultural production through sustainable land and water management and soil conservation RADA

Implement the national agriculture policy


Page 14 of 45

Key Stakeholders Role in SLM Coordinate farmers activities and those of other agricultural stakeholders Contribute towards sustainable animal production Implement the national livestock policy RARDA Coordinate farmers activities and those of other livestock stakeholders Implement the national Policy on forestry and agro-forestry Advise the Government on policies, strategies and legislation related to the management of the forestry as well as the implementation of forestry related international conventions and protection of natural resources such as land, water and forestry biodiversity

NAFA

Support organs that are in charge of fighting erosion with the aim of safeguarding forestry Provides a policy framework for land administration Offers a legal framework for land tenure security. NLC Carries out registration and land use planning Facilitate the establishment of environmental sound norms and standards for mining sector OGMR Implement the national mining policy and strategies Execute the national agricultural research and promote technologies in crops, livestock, forestry, agroforestry, land conservation and water management Coordinate research activities in crop and animal improvement, forestry, agroforestry, land and water management

ISAR

Collaborate with national, regional and international agencies with similar mandate. IRST Research and generating suitable technologies in energy, environment, health society and economy fields hence

contributing to the sustainable development of Rwanda Source: Adapted from the Official Gazettes of the Republic of Rwanda.

Although the government funds a considerable number of SLM projects, most financing is done by bilateral and multilateral donors. The major donors to SLM Projects per sector as agreed with the GoR are summarized in Table 3.


Page 15 of 45

Table 3: Donors funding per sector

Agriculture Forestry, Land and Environment Water and Sanitation Bilateral Multilateral Bilateral Multilateral Bilateral Multilateral

Canada EC Sweden FAO Japan AfDB Japan WB Belgium UNDP (UN lead) Austria UN HABITAT United Kingdom FAO (UN lead) Germany UNEP UNICEF (UN lead) United States (US) WFP UN HABITAT WHO IFAD WFP

Source: MINECOFIN, 2010

of 45

2.1.2 Climate change mitigation and adaptation initiatives at the international level relevant to Rwanda

A relatively large number of programs and initiatives exist that Rwanda can tap into to improve its access to carbon markets. These include initiatives run by several funds, multi-lateral banks, UN agencies, NGOs and development agencies. Relevant initiatives generally focus on project financing, policy dialogue and development, capacity building and technical assistance, in the hope of catalyzing greater involvement in the carbon markets and contribute to the further mitigation of GHG emissions. Presented below in Table 4 is a summary of current initiatives and programs relevant to Rwanda with a focus on forestry, SLM and sustainable rural energy.

Table 4: Summary of initiatives and programs relevant to Rwanda to improve its access to carbon markets

Initiative Description Total size Sectoral focus Country focus

ACP-CD4CDM Project aiming to enable targeted countries to fully participate in the carbon market

N/A All sectors eligible for the carbon markets

12 African, Caribbean and Pacific (ACP) countries, including Rwanda

African Carbon Asset Development (ACAD) Facility

Facility for upfront project financing and capacity building

2009 - 2011 USD $7 million.

All sectors eligible for the carbon markets

Africa

Agence Francaise de Developpment

Partnership for support on policy, public dialogue and technical capacity

USD $15 million REDD 10 COMIFAC member countries1

COMIFAC Ministerial level authority for policy development and dialogue

N/A Sustainable forest management and REDD

10 COMIFAC member countries

Congo Basin Forest Fund

Fund for project financing

GBP 100 million

Forest management, community livelihoods and reduction in rates of deforestation


Congo Basin Forest Partnership

Partnership for information sharing and policy dialogue support for COMIFAC

N/A Sustainable forest management and REDD


GTZ International organization supporting capacity building, policy development and pilot projects

N/A Carbon markets, REDD

Global

Norway International

Programme for capacity building,

3 billion NOK / year

REDD All countries with REDD potential

1 COMIFAC member states include: Burundi, Cameroon, Congo, Central African Republic (CAR),

Gabon, Equatorial Guinea, Rwanda, Sao Tome and Principe, the Democratic Republic of Congo (DRC) and Chad


Page 17 of 45

Initiative Description Total size Sectoral focus Country focus

Climate and Forest Initiative

technical support, project financing, policy support and research

USAID - Central African Regional Program for the Environment (CARPE)

Conservation funding, policy support, mapping

N/A

Forest and biodiversity protection

Global

World Bank BioCarbon Fund


Tranche One USD $53.8 million; Tranche Two USD $38.1 million. Both Tranches are closed to new fund participation

Projects that sequester or conserve carbon in forest and agro-ecosystems

Global

World Bank Forest Investment Program


USD 562.1 pledged

REDD, SFM Based on ODA eligibility and active MDB country programme.

WWF NGO focused on capacity building, awareness building, policy development and pilot projects

N/A

Forest and biodiversity protection, REDD

Global

MDG Carbon Facility

Innovative means of harnessing the vast resources of the carbon market in order to bring long-term sustainable development to a more diverse share of developing countries

N/A Renewable energy, energy efficiency, cleaner energy, waste to energy, fugitive emission reductions

Global, focus on LDCs

Overall, Rwanda has access to nine initiatives and programmes aimed to increase countries access to carbon markets2. Furthermore, there are a number of governmental and non-governmental agencies active in Rwanda that have increased access to carbon markets as part of their agenda. These include the AfD, COMIFAC, GTZ, USAID and WWF. While access to carbon markets could still be improved, Rwanda is doing relatively well compared to other African countries in terms of developing carbon project, especially when considering its rather small geographical size.

Funding specific for adaptation to climate change activities is more recent than mitigation funding and as such has received less attention than mitigation activities to date. Fewer funds exist at the international level and therefore fewer opportunities to successfully finance adaptation activities. Nonetheless, Table 5 provides an overview of initiatives that are attempting to improve access to adaptation funding and that are relevant to Rwanda.

2 This may not be an exhaustive list, but certainly covers all major international mitigation funding and

support sources.


Page 18 of 45

Table 5. Summary of adaptation initiatives relevant to Rwanda

GEF Funds Focus Areas Volume pledged

Status Eligibility Projects funded in sub-region

Strategic Priority for Adaptation (SPA)

Biological diversity, climate change, international waters, land degradation

USD $50m

As of May 2008 all funds have been allocated (21 projects). Program to be evaluated

Non-Annex 1 Rwanda receiving funding as part of a region-wide initiative to integrate vulnerability and adaptation to climate change into policy planning

Least Developed Countries Fund (LDCF)

Supports implementation of NAPAs

USD $180m (receiving additional pledges)

USD $36.8m disbursed (12 projects). Open for project ideas.

Only Non-Annex 1 LDCs

Rwanda receiving funding for the preparation of their NAPA and for a project reducing Vulnerability to Climate Change by Establishing Early Warning and Disaster Preparedness Systems

Special Climate Change Fund (SCCF)

Water, land management, agriculture, health, infrastructure development, fragile ecosystems, integrated coastal zone management, disaster risk management and prevention

USD $90m

USD $67.6m disbursed (17 projects). Open for project ideas

Non-Annex 1 No projects funded in Rwanda to date, but Rwanda is eligible to apply for funding under the SCCF

Adaptation Fund (AF)

Adaptation projects and programs in developing countries that are particularly vulnerable to the adverse effects of climate change

Expected to receive between USD $100 500 million by 2012

Over 5 million CERs in holding account. Not operational yet.

Non-Annex 1 Only one project (in Senegal) has been approved under the AF Fund to date, but Rwanda is eligible to apply for funding under the AF.

Climate Change Adaptation in Africa (CCAA)

Research and capacity development program aims to significantly improve the capacity of African countries to adapt to climate change in ways that benefit the most

N/A Funded 37 projects in Africa since April 2006. Open for project ideas

Africa No projects funded in Rwanda to date, but Rwanda is eligible to apply for funding under the CCAA.


Page 19 of 45

GEF Funds Focus Areas Volume pledged

Status Eligibility Projects funded in sub-region

vulnerable

GEF Small Grants Programme (SGP)

Activities of non-governmental and community-based organizations in developing countries in five focal areas including adaptation

N/A USD $247m disbursed so far in 9,500 grants. Open for project ideas

Countries that ratified both the UNFCCC and CBD

Three climate change adaptation projects funded in Rwanda.

Global Facility for Disaster Reduction and Recovery (GFDRR)

Improve the ability of low and middle income countries to respond and manage disaster reduction and recovery, including adapting to climate change

N/A N/A Low and middle income countries

Supported three regional projects including Rwanda

Overall, Rwanda has access to seven international adaptation initiatives3. Thanks to these initiatives, Rwanda has so far been able to implement nine adaptation projects, of which four are regional projects that also include Rwanda, one involved the development of Rwandas NAPA and the remaining four address specific identified adaptation needs of the country.

Other sources of climate change adaptation funding that may become increasingly important in the future include:

- Fast Start Fund established in the Copenhagen Accord and which has been adopted in the Cancun Agreements, (USD 30 Billion from 2010 t0 2012 and USD 100 Billion from now to 2020);

- Japanese African Adaptation Fund; - Global Climate change Green Fund established by the UNFCCC COP and the

outcome of Cancun; - Climate Change Green Fund for Africa established by AfDB.

2.1.3 Climate change mitigation and adaptation initiatives at the national level in Rwanda

Rwanda has put in place a number of instruments that can be exploited to mitigate and adapt to the effects of climate change. These instruments are categorized as either legal, policy/strategy, institutional or programmes/projects.

3 This may not be an exhaustive list, but it covers all major international adaptation funding sources.


Page 20 of 45

Rwandas legal, policy/ strategy and institutional frameworks as well as programmes/projects to climate change

Mitigation and Adaptation initiatives to climate change in Rwanda under legal, policy, strategy and institutional frameworks contain provisions or give orientations that compel various institutions to implement activities that translate into adaptation and mitigation to climate change. These frameworks are summarized in Table 46.

Table 6. Summary of key legal, policy and institutional mitigation and adaptation initiatives to climate change in Rwanda

Initiatives Nature Article 49 of Rwandan Constitution obliges both the Government and Citizens to protect the environment. The organic law on environment (law No4/2005) aims at protection, conservation and sustainable management of the environment for welfare of the population The Land Law set guidelines that ensure sustainable land management The Law on forestry protection calls for protection and conservation of forests and sets punishments for people found destroying the forests.

Legal framework

Rwanda committed itself to the protection of environment internationally by signing and ratifying International conventions namely the United Nations Framework Convention on Climate Change, the KYOTO Protocol to the Framework Convention on Climate change, Convention on persistent organic pollutants, International Convention on the establishment of international procedures agreed by states on commercial transactions of agricultural pesticides and other poisonous products, Convention on the Control of Transboundary Movements of Hazardous wastes and their disposal , International Convention on Biological Diversity and its Habitat, International Convention on Substances that Deplete the Ozone Layer, Biosafety to the Convention of Biological Biodiversity, International Convention on Wetlands of International importance, especially as water flow habitats and Convention on International Trade in endangered species

Policy/strategy instruments

Both Vision 2020 and Economic Development and Poverty Reduction Strategy (EDPRS) priorities sustainable development, environment protection and proper natural resource management through

Reducing the use of wood energy and improving energy efficiency Promoting soil conservation and restoration of soil fertility Liming of acid soils to reduce nitrogen emission into the air. Reducing methane emissions into air through good livestock

practices Increasing carbon sequestration on farmlands through better

management of residues and rehabilitation of degraded hillside soils as well as practicing agro forestry.

Conserving critical ecosystems and maintain the functioning of


Page 21 of 45

forests and trees in the environment particularly in water catchment areas.

Encouraging private sector by giving incentives for private investment in low carbon project(Low carbon policy, implementation strategy and guidelines)

Optimum utilization, awareness raising and ensuring populations participation in environmental activities

Mainstreaming climate change adaptation and mitigation into national policies and strategies(NAPA has already been mainstreamed in Economic Development and Poverty Reduction strategy)

Institutional framework for smooth coordination of environmental issues/climate change

Each of the above areas that facilitate adaptation and mitigation to effects of climate change has an institution(s) responsible for coordination, oversight and synergy; REMA-Environment(DNA), Rwanda Natural Resource Board-Land, Water, Forestry and Mines, Rwanda Agricultural Board-Agriculture and Livestock , ISAR and IRST-Research

Within REMA, a directorate for climate change has been created and is operational

Programmes/Projects

The Government of Rwanda has initiated a number of programmes aimed at helping the country and its citizens to mitigate and adapt to the effects of climate change. These programmes/projects are summarized in Table 57 below.

Table 7. Programmes related to mitigation and adaptation to climate change and their budget in Rwanda

Ministry Responsible Programmme Budget (frws) Source of budget

Ministry of Infrastructure Diversification of energy sources and supply security

1.674 bn Development Budget

Ministry of Environment and Lands

Land Planning, Management and Administration

Water Resources Management;

2.03 bn

1.87bn

Development Budget

Ministry of Agriculture and Animal Resources

Irrigation Development Promotion of Research for Development Soil Conservation and Soil Erosion control;

4.25bn

0.70 bn

Development Budget

Ministry of Forestry and Mines

Forestation, and Reforestation Development Budget

Ministry of Disaster Management and Refugees

Risks and Disaster management; 0.08 bn Recurrent Budget

Source: REMA, 2010


Page 22 of 45

The above programmes have a number of projects that are currently under implementation. Some of these projects are funded internally by the Government under the Development Budget while others are financed externally by development partners.

Projects

In addition to putting in place legal, policy, strategy, and institutional instruments as well as programmes and projects to mitigate and adapt to the effects of climate change, Rwanda has also commissioned a number of projects. These projects include studies that were conducted to assess the current status with respect to climate change, such as the first and second national communications on the United Nations Framework Convention on Climate Change (UNFCCC), the National Adaptation Programme of Action and the Study on the Economic Cost of Climate Change in Rwanda.

Other projects including their budget size and source are summarized in Table 8, 9 and 10.

Table 8: Environmental /Forest /Land Use Projects (Million)

Project Name Sources of funding

2007 2008 Mini

budget 2009 2009/10 Closing

date

Rwanda 167 27 Detailed Studies on Nyabarongo Management South Korea 282

Gestion Intgre des Ressources En Eau Rwanda 70

DEMP: Decentralized Environment

Management Project Phase I Pays Bas 414

UNDP 250 2013 DEMP: Phase II

RWANDA 42

IDA 441 732 125 1,140 2010

IDA/GEF 500

IMCE: Integrated Protection and Management Of Critical Ecosystems

Rwanda 80 50 425 98

Restauration de la Biodiversit des Aires Protges

GEF 570

BAD 558 1,175 1,861 Projet d'Appui l'Amnagement des Forets Rwanda 193 158 126

Technical Support to Land Reform In Rwanda

DFID 393

Schma Directeur d'Utilisation des Terres SDUTA

Rwanda 600 700 690 1,015

BAD 63

FAO 359

Rainwater Collection and Use

Rwanda 25 237 244

Rehabilitation and Protection of River

Banks and Lakes Shore Rwanda 910

Reinserting Biodiversity In Protected Areas

GEF 295

Control of Major Rivers (Yanze, Cyunyu, Rwanda 450 378


Page 23 of 45

Project Name Sources of funding

2007 2008 Mini

budget 2009 2009/10 Closing

date

Sebeya, Kadahokwa, Rugeramigozi) Etude de la Nappe Phratique Rwanda 264 75

Fight Water Hyacinth Rwanda 216 116

LWI 300 700 Ground Water Project Rwanda 60 200

Land Management Rwanda 875 1,015 2012

Programme d'Appui la Reforestation Belgique 850 2,021 2012

GEF 400 551 2012 Protected Areas Project Rwanda 200

Rehabilitation of Hydrological Stations Rwanda 362 175

Rwanda 88 2011 National Youth and Environment Project UNDP 624

Poverty Environment Initiative UN HABITAT 958

Total

3,486 3,443 7,287 10, 453


Page 24 of 45

Table 9: Agricultural /Land Use Projects (Million)

Projects Sources of funding

2007 2008 Mini budget 2009

2009/10 Closing date

Bugesera Rural Development Project Luxembourg 816 2,001 223 319 Irrigation and hill side protection Rwanda 400 400, One Cow Per Family Rwanda 500 1,199 1,000 1,302 2015

BAD 180 1,540 694 468 2012 PADAB : Projet D'Appui au Dveloppement Agricole de Bugesera Rwanda 117 112 Irrigation Master plan Rwanda 600 180 240 280

IDA 1,042 830 1,032 2012 RSSP: Rural Sector Support Project (Phase II) Rwanda 305 225

FIDA 343 196 273 2011 Rwanda

PAIGELAC: Project for Integrated management of inland lakes

Population DIFD 376 95 25 281 2013 FIDA 282 286 159 1,918

PAPSTA: Project for support to Strategic Plan for Agriculture Transformation

Rwanda 110 78 132 32 Gashora Swamp Reclamation Rwanda 400 280

FIDA 2,157 2,477 2016 KWAMP: Kirehe Watershed Management Project Rwanda 500 220 LWH : Land Husbandry Hillside Irrigation and Water Harvesting

Rwanda 500 1,875 2014

Nasho Irrigation Project 175 TOTAL 4,953 6,924 7,673 12,778


Page 25 of 45

Table 10: Energy Project

Projects Donors 2007 2008 Mini budget 2009

2009/10

Biomass: Project for substitution of fuel e and wood energy

Rwanda 300

Expand Meteorological Stations Network (Synoptic, Agromet, H

Rwanda 58

Project To Substitute Wood and Wood Coal: Family Biogaz

Rwanda 397

Project To Substitute Wood and Wood Coal: Improved Stoves

Rwanda 332

GEF 150 150 Strategic Study On Energy Efficiency Rwanda 50 50 Pays Bas 275 100 Strategic Study/Renewable Energies Rwanda 300 GEF 100 800 Design and adoption of a Regulatory Framework

on Renewable and Substitution Energies Rwanda 150 100 Pays Bas 277 854 Project: Substitution Of Wood/ Coal : Household

Biogas Rwanda 301 633 Construction of rain water Collection system on the public Buildings

Rwanda 276

District Forests Management (MINALOC) Rwanda 929 Total 300 787 2,532 2,963

Source: RADA/SLM Project, 2010

The above projects aim at enabling the Rwandese population to adapt to and mitigate the effects to climate change. The nature and extent of adaptation and mitigation depends of the project. For example the soil conservation project though radical and progressive terraces currently under implementation throughout the country has supported farmers to adapt to the effects of climate change by increasing agricultural production through enabling them to have enough reservoirs even in case of extreme events such as drought or heavy rains.

Most of the projects listed in the tables above go beyond 2010 and can serve as entry points for developing other synergistic projects on SLM and climate change. Some of these projects include: Land husbandry, Hillside irrigation and Water harvesting, One Cow per poor family, Land Management, Kirehe Community based watershed Management, Support to reforestation Programme/Programme dappui la Reforestation and Agricultural Development Support to Bugesera Project (PADAB). Experience shows that the above projects are likely to go beyond the initial closing dates as most of them are in their first or pilot phase and there is high potential for financing climate change activities in Rwanda in the next 5 years.

However, there is need for coordination and creation of synergies for the realisation of greater impact. When looking at the various projects under implementation, it can be noted that some activities are duplicated with limited linkages or synergies among them. There is therefore a need to create a national task force in charge of preparing CC/SLM projects to


Page 26 of 45

give them more focus and avoid duplication. The task force could develop a coordination mechanism that describes who does what in order to share information and experience as well as create synergy among CC/SLM projects. It could also ensure that CC/SLM stakeholders are supported to elaborate competitive CC/SLM projects to attract potential donors. During the validation workshop for the present study, which was held from 18 to 20 May 2011, the participants recommended to start with the following projects: Agroforestry and silvo-pastoral system: This project aims at supporting mitigation

initiatives.The project has been chosen because of land scarcity in Rwanda that would not allow any meaningful afforestation project. This project is expected to benefit many farmers because its activities will be carried out in their farms.

Promotion of sustainable crop and animal husbandry techniques: This will support farmers to adapt to the effects of climate change. Some activities under this project such as drought resistant crops varieties, soil erosion control, fodder production and conservation will reduce farmers vulnerability due to effects of climate change.

Figure 1: Radical terracing in Rubaya Sector, Gicumbi District, Northern Province

Photo credit: BAC

Similarly proper livestock management such as zero grazing being taught to farmers in Rwanda is expected to improve efficient feed utilization hence increasing their capacity to survive the effects of climate change. It is also expected to reduce accelerating climate change by decreasing the emission of methane gas into the air.


Page 27 of 45

Figure 2: Zero Grazing in Mukamira Sector, Nyabihu District of Western Province

Photo Credit: BAC

The current efforts to diversify into alternative sources of sufficient energy as well as their efficient utilisation are aimed at reducing the use of combustible energy hence decreasing the emission of green house gases into the air and mitigate effects of climate change. The utilisation of alternative energy source is also expected to reduce burden on forest allowing them to increase carbon sequestration.

Figure 3: Biogas unit in Nyabihu District and Mini Hydro power station in Burera District respectively

Photo credit: BAC Photo credit: BAC

Similarly the plantation of forests for regeneration of natural forestry, agro-forestry, biodiesel forestry as well as high income forestry activities are being implemented in Rwanda to increase significant quantity of carbon sequestration hence reducing emission of green gases into the atmosphere.


Page 28 of 45

Figure 4: Reafforestation of in Bugesera District, Eastern Province

Photo Credit: BAC 2.2 Current investment flows to climate change mitigation and adaptation

projects in the agriculture, rural and land use sector

2.2.1 Carbon projects relevant to the agriculture, rural (energy), forestry and land use sector under development in Rwanda

CDM projects currently under development in Rwanda are summarized in Table 11 below.

Table 11: CDM projects under development in Rwanda

CDM 4472

Rwanda Electrogaz Compact Fluorescent Lamp (CFL) distribution Project4

EE households Lighting

Registered 24,000

CDM 5786

Rwanda Natural Energy Project: Water Treatment Systems for Rural Rwanda (Shyra and Fawe)5

Solar Solar PV water disinfection

At validation 6,000

CDM 5788

Rwanda Natural Energy Project: Water Treatment Systems for Rural Rwanda (Mugonero Esepan, Rwesero, Nyagasambu)6

Solar Solar PV water disinfection

At validation 6,000

n.a. D-light rural lighting programme (PoA)7

Renewable energy Letter of Non Objection

granted 29 Apr

40,000 60,000 for the programme

4 http://cdm.unfccc.int/Projects/DB/AENOR1265819671.65/view

5 http://www.rema.gov.rw/dna/index.php?option=com_content&view=article&id=72:water-treatment-

systems-for-rural-rwanda-shyira-and-fawe&catid=47:project-listes&Itemid=64 6 http://www.rema.gov.rw/dna/index.php?option=com_content&view=article&id=74:rwanda-natural-

energy-project-water-treatment-systems-for-rural-rwanda-mugonero-esepan-rwesero-nyagasambu&catid=47:project-listes&Itemid=64 7 http://www.rema.gov.rw/dna/index.php?option=com_content&view=article&id=83:d-light-rural-

lighting-program&catid=47:project-listes&Itemid=64


Page 29 of 45

2010. PDD writing ongoing

N/A NURU Design Lighting Programme8

Fossil fuel switch (LED lights charged by a stationary bicycle)

Conceptual N/A

N/A Rwanda 19.95MW Small and Micro Hydro Project Bundle9

Hydro Conceptual 55,250

Voluntary carbon projects currently under development in Rwanda are summarized in Table 6 below.

Table 6: Voluntary carbon projects under development in Rwanda

Standard Project title Technology used Status Emission reductions (tCO2e/yr)

Gold Standard

PiSAT Solar K-Light Project in Rwanda10

Solar PV Listed 4,993

Plan Vivo

Clinton Foundation forestry project11

Reforestation N/A N/A

Tbd Rwanda National Biogas Programme12

Renewable energy, methane avoidance

Conceptual 48,000

8 http://www.rema.gov.rw/dna/index.php?option=com_content&view=article&id=80:nuru-design-

lighting-programme-&catid=47:project-listes&Itemid=64 9 http://www.rema.gov.rw/dna/index.php?option=com_content&view=article&id=75:rwanda-1995mw-

small-and-micro-hydro-project-bundle&catid=47:project-listes&Itemid=64 10

http://www.viabilityllc.com/pisat-solar-carbon-project.html 11

http://www.rema.gov.rw/dna/index.php?option=com_content&view=article&id=82:clinton-foundation-forestry-project&catid=47:project-listes&Itemid=64 12

http://www.rema.gov.rw/dna/index.php?option=com_content&view=article&id=77:rwanda-national-biogas-programme&catid=47:project-listes&Itemid=64


Page 30 of 45

2.2.2 Adaptation projects relevant to the agriculture, rural (energy), forestry and land use sector

A list of adaptation projects being developed and/or implemented in Rwanda at present is provided in Table 73.

Table 73: Adaptation projects underway in Rwanda

Name Initiative under which

funded

Budget Status

Enabling Activities to Facilitate the Preparation of a National Adaptation Plan of Action (NAPA)13

LDCF USD 195,000 (GEF grant)

IA approved

Reducing Vulnerability to Climate Change by Establishing Early Warning and Disaster Preparedness Systems and Support for Integrated Watershed Management in Flood Prone Areas14

LDCF USD 3,160,000 (GEF grant) + USD

3,300,000 (Co-financing)

CEO endorsed

Projet de construction de 160 citernes d'eau destins la collecte des eaux de pluie et la protection de l'environnement dans l'agglomration de MUSIGA-Secteur KANOMBE15

GEF Small Grants

Programme

USD 50,000 Satisfactorily completed

Production of solid fuel briquettes from municipal waste16

GEF Small Grants

Programme

USD 47,290 Satisfactorily completed

Project de biogaz lcole Stella Matutina17

GEF Small Grants

Programme

USD 24,000 Under execution

13 http://gefonline.org/projectDetailsSQL.cfm?projID=2484

14 http://gefonline.org/projectDetailsSQL.cfm?projID=3838

15http://sgp.undp.org/web/projects/13616/projet_de_construction_de_160_citernes_d_eau_destines_a_la_collecte_des_eaux_de_pluie_et_a_la_protec.html 16http://sgp.undp.org/web/projects/13636/production_of_solid_fuel_briquettes_from_municipal_waste.html 17

http://sgp.undp.org/web/projects/14806/project_de_biogaz_a_lecole_stella_matutina.html


Page 31 of 45

Name Initiative under which

funded

Budget Status

Integrating vulnerability and adaptation to climate change into sustainable development policy planning and implementation in Southern and Eastern Africa18

Strategic Priority on Adaptation

USD 1,000,000 (GEF grant) + USD

1,265,000 (Co-financing) (split

among five countries, namely Kenya, Madagascar, Mozambique, Rwanda and

Tanzania)

Under implementation

Pilot project on reducing the vulnerability of the energy sector to the impacts of climate change in Rwanda19

UNEP, GEF and

Government of the

Netherlands

USD 313,333 (+ contributions from the

Government of Rwanda, tbd)

Under implementation

Source: REMA, 2010

2.2.3 ODA funding or national funding channelled specifically into mitigation and adaptation activities relevant to the agriculture, rural (energy), forestry and land use sector

While the proportion of the Rwandan national budget allocated to the environment is still small (1.15% of overall country budget), it has increased significantly from 2003, when it constituted less than 0.1% of the overall country budget, at 0.06%. Moving forward, it is expected that the share of environment, land and forestry will not exceed 1.8% cent of the total expenditure and not 4.9% in the Capital Development and Productive Sectors expenditure (REMA, 2009).

In 2005, the overall aid directed to environmental protection in Rwanda constituted only 1% of the total overseas development assistance (ODA) disbursed in that year. However, due to its cross-cutting nature, some funds from health (12%), energy (2%), agriculture (4%) and water and sanitation (3%) may have contributed to environment management.

18 http://www.adaptationlearning.net/project/integrating-vulnerability-and-adaptation-climate-change-

sustainable-development-policy-plann 19

http://www.iisd.org/pdf/2007/workshop_reducing_vulnerability.pdf


Page 32 of 45

Figure 5: Sectoral distribution of ODA in Rwanda in 2005 (REMA, 2009)

2.3 Identification of opportunities and barriers to funding mitigation and adaptation projects in Rwanda

2.3.1 Identification of opportunities Rwanda holds significant opportunities to host GHG mitigation projects. As for adaptation, there are notable overlaps between carbon market project opportunities, and measures that help to combat land-degradation and desertification. Opportunities for dual mitigation and adaptation projects in Rwanda with UNCCD relevance are as follows:

AFOLU - In Rwanda, the key area with mitigation and adaptation potential includes the entire array of activities that fall under the wider AFOLU category. Activities in this category offer a high potential for synergies between combating climate change and land degradation and desertification. Specific opportunities in Rwanda related to the AFOLU sector include (REMA, 2010):

o Restoring and protecting natural forests; o Afforestation and reforestation activities (Vision 2020 foresees an increase of

forest cover of up to 30% by 2020, compared to forest cover of 21% today): Planting bamboo in protected humid areas; Planting eucalyptus on hilly sloped that cannot be used for agriculture; Planting Grevilla robusta and other tree species for wood provision.

o Intensification of agroforestry practices; o Sustainable forest management and conservation.

Rural energy provision is another key area for mainly mitigation activities and for a synergistic approach between the UNFCCC and UNCCD. Specific opportunities in Rwanda related to the rural energy sector include (REMA, 2010):

o Increase the share of renewable energy; o Introduction of efficient charcoal burning and carbonisation; o Increase use of biogas from 5% to 70% in rural households with access to

electricity, and from 0.5% to 60% in rural households without access to electricity;

o Replacement of traditional lightbulbs with energy efficient ones;


Page 33 of 45

o Introduction of fuel efficient cooking stoves resulting in a reduction of the fuel wood needed for cooking of in between 50% and 75%.

These activities have been identified as priority areas by a document currently being prepared by the Rwandan Government (REMA, 2010). An implementation plan still needs to be disclosed.

2.3.2 Identification of barriers and constraints It is apparent that despite the numerous options for mitigating GHGs and adapting to climate change in Rwanda, projects face a range of barriers that prevent both private and public sector actors from participating within the carbon markets or from seeking adaptation funding. Barriers and constraints can be summarized as follows:

Mitigation Project Barriers (and the CDM framework): o Limited scope for projects in the land-use sector The land-use sector

(agriculture and forestry) bears a high potential in terms of climate change mitigation while contributing to sustainable land management in Rwanda. However, markets for projects in this sector are limited. Avoided deforestation and soil-carbon sequestration projects have been specifically excluded from the CDM as a project category, while afforestation and reforestation projects have suffered from complicated methodological procedures and a limited demand for forestry specific credits due to the largest active carbon market, the European Union Emission Trading Scheme (EU ETS), banning the use of forestry credits to meet compliance targets. Despite the limitation of low greenhouse gas emission levels, Rwanda has taken steps to develop in a green manner with a target of 90% of energy expected to be from renewable sources and 246,000 ha of forest allocated for carbon credits thus providing a fertile environment for many carbon credit eligible projects. So far currently one CDM project, called the Rwanda Electrogaz Compact Fluorescent Lamp (CFL) distribution Project, has been registered and numerous others are in the pipeline, especially in the fields of energy and forestry.

o Lack of industrial development The CDM has a strong bias towards large, industrial, point-source projects with the potential to generate substantial emission reductions. These projects have proven to be the most profitable and successful of CDM projects to date largely due to their considerable economies of scale. Despite its recent economic boom, Rwandas industrial development remains limited, resulting in limited opportunities to develop CDM projects.

o Low grid emission factor 56% of electricity in Rwanda is produced in hydropower stations, while the remaining is produced through thermal power stations (REMA, 2010). This has resulted in a relatively low national grid emission factor (approx 0.7 tCO2e/MWH (calculated from (REMA, Accessed Nov 2010)) compared to other countries that use primarily fossil fuels. This means that projects that displace the use of grid electricity in Rwanda (e.g. energy efficiency, renewables) are credited with fewer emission reductions than in other countries with dirtier power generation, thus making the project less viable.


Page 34 of 45

o High transaction costs CDM projects incur substantial upfront development transaction costs that may be prohibitive for the scale of mitigation projects possible in Rwanda. High initial transaction costs would need to be covered by a substantial revenue stream from the sale of carbon credits, which may not always be the case in Rwanda. Although small-scale projects benefit from reduced eligibility requirements under the CDM, in reality it has been found that small-scale projects incur similar overall transaction costs to large-scale projects, making their project viability more challenging. A lack of initial capital available to cover these transaction costs, from project developers or local finance institutions, further reduces the potential to develop these projects under the CDM.

Adaptation Project Barriers o Information and capacity While the adverse impacts of climate change have been

documented in Rwanda (see for example (REMA, Accessed Nov 2010) and (Ministry of Lands Environment Forestry Water and Mines, 2006), its manifold impact on the ecosystems is not yet clear. In order to better determine the challenges of adapting to climate change, and to allow stakeholders to make educated decisions, information on climate systems and their variability is required. This uncertainty of climate change projections and variability makes it difficult to determine the appropriate adaptation measures (IDS, 2006). Furthermore, while a number of funds and facilities to sponsor climate change adaptation exist, the level of awareness about their potential is still low and there is limited know-how about how to apply for the funding that they make available.

o Socio-economic country situation Non-climatic stresses associated with the low development level of Rwanda increase the countrys vulnerability to climate change. They do so by reducing the countrys resilience and its adaptive capacity because resources need to be deployed to competing needs (Adger, et al., 2007).

o Financial situation - Rwanda is ranked among the least developed countries and as such is an inherently poor nation. This has meant that historically it has only been possible to allocate limited funding to the environment (refer to Section 2.2.3). The Rwandan Government has recognised that environmental degradation is a key aspect of the countrys low development and vulnerability profile and is supporting environmental sustainability, however the amount of funding that the Government is able to allocate to climate change adaptation is still very limited. For climate change adaptation to be implemented in Rwanda, it will therefore be necessary that sufficient funds are made available by the developed world.

o Channelling adaptation funding Even when funding for adaptation is available, one of the main barriers is appropriate channelling of the funds to potential projects. This is a significant problem given the broad spectrum of activities that may be affected by climate change, as well as the diverse locations and stakeholders worldwide. Rwanda is in urgent need of accessing adaptation financing. This would be greatly facilitated by a more straightforward and transparent means of access to funding sources and through enhanced information and capacity on how to apply for the funding available from different bodies (many of the adaptation funds currently


Page 35 of 45

available have come under scrutiny due to a lack of transparency in the way they are administered and how their funds are disbursed).

o Harmonisation of adaptation activities Similar activities within NAPA, NAP and EDPRS priorities should be identified to create synergies. Promotion of off farm activities, integrated water management system, zero grazing, fight against erosion, increasing forest cover, make an effort to reduce wood deficit, develop alternative energy sources, develop integrated information management system and support ecosystem rehabilitation are common activities to all the three strategies and should be exploited for the development of SLM.


Page 36 of 45

3 Conclusions and recommendations

3.1 How to overcome the implementation barriers of mitigation and adaptation activities relevant to the AFOLU sector in Rwanda

3.1.1 Overcoming barriers specific to mitigation Barriers associated with the limited scope for land use sector projects These can be overcome by GoR negotiating with the AFOLU financing institutions to ensure that:

The scope for AFOLU projects in an international climate change agreement is enlarged to include more land-use type activities;

The rules and procedures governing the AFOLU sector are simplified; Pilot projects are developed for the voluntary market to build experience and learn

lessons that can be applied in the future to projects developed under a compliance regime.

Barriers associated with the lack of industrial development and the low grid emission factor

These barriers can be overcome by GoR negotiating in the international climate change arena to ensure that:

The CDM is reformed in a way that does not favour industrialtype projects and offers more scope for small-scale activities;

CDM reforms address the issue of accounting for emission reductions that displace off-grid emissions.

High transaction costs barriers can be overcome by Rwanda negotiating in the international climate change arena to ensure that: Further simplified procedures are adopted for small-scale projects, implying lower

transaction costs; The Programme of Activities (PoA) a CDM mechanism designed to allow for the

bundling of smaller projects under one umbrella program is further simplified providing another avenue through which projects in the sub-region can access carbon finance.

3.1.2 Overcoming barriers specific to adaptation Information and capacity barriers It is recommended that

A centre of excellence for climate change research is established in Rwanda and that the government engages more actively with the scientific community (nationally and internationally) to gain better information;

The information needs of different stakeholders and the best way to communicate with them is carefully considered when sharing relevant information with them;

A broad range of stakeholders is involved in climate change policy-making so as to ensure that climate change adaptation is informed by successful ground-level experiences in vulnerability reduction. Major stakeholders include MINELA, MINAGRI, MININFRA MINALOC, MINECOFIN, MINIFOM, REMA, RADA, RARDA, NAFA, NLC, OGMR and ISAR


Page 37 of 45

Although sustainable Land Management activities in Rwanda are implemented by a number of ministries and agencies, the ministry of Agriculture and Animal Resources (MINAGRI) is the lead institution as it is the one mandated to handle SLM issues. This is why it is the one currently supervising SLM project. The ministries are mainly responsible for policy and strategic orientation and formulation while the agencies carry out implementation

A centralized information hub on funding sources for adaptation is developed, and the capacity of relevant stakeholders on how to apply for adaptation funding is improved/built through dedicated information/training sessions.

Barriers associated with the socio-economic situation of the country Overcoming the above barriers requires that

Climate change facilitation measures are included in a package of positive incentives to tackle the root of the socio-economic problems that Rwanda faces;

The discussion on the possibility of linking the need for climate change adaptation money (in a way, a climate debt that the developed world has with the developing world) with the larger debt relief debate is taken further.

Financial barriers The above barriers can be overcome by GoR negotiating in the international climate change arena to ensure that:

The funding generated is adequate (i.e. at least in the tens of billions of dollars per year);

The funding generated is predictable (i.e. have steady flows of revenues, that can be estimated in advance);

The funding generated is additional (i.e. it should come over and above current ODA commitments) (Decision 1/CP.13. Bali Action Plan, 2007);

Several of the most promising mechanisms to overcome the present adaptation funding gap are further developed and deployed (Bapna & McGray, 2008), as it is unlikely that a single mechanism will be able to meet all these criteria.

Access to adaptation funding barriers to overcome access to adaptation funding barriers, it is recommended that:

Capacity is built and accurate information is disseminated among adaptation policy makers and project proponents to empower them to use the mechanisms available as far as possible.

The following projects Land husbandry, Hillside irrigation and Water harvesting, One Cow per poor family, Land Management, Kirehe Community based watershed Management, Support to reforestation Programme/Programme dappui la Reforestation and Agricultural Development Support to Bugesera Project (PADAB go beyond 2010 and these can serve as entry point for new projects that link SLMand Climate Change.

Nationally Appropriate Mitigation Actions (NAMAs) a potential way to finance mitigation and adaptation in Rwanda post-2012

The Bali Action Plan introduced the concept of nationally appropriate mitigation actions by developing countries in the context of sustainable development, supported and enabled by technology, financing and capacity building, in a measurable, reportable and verifiable


Page 38 of 45

manner.

While an exact definition of what NAMAs are and what they entail is still outstanding, they can broadly be categorized into three types:

I. Unilateral NAMAs, which include mitigation actions undertaken by developing countries on their own;

II. Supported NAMAs, where mitigation actions in developing countries are supported by direct climate finance from Annex I countries;

III. Credited NAMAs, where mitigation actions in developing countries generate credits to be sold on the carbon markets (e.g. sectoral crediting).

While negotiations on NAMAs are still fairly vague and generalized, making it hard to understand the concrete implementation issues surround them, NAMAs (particularly Supported NAMAs and Credited NAMAs) could play a positive role in generating funds for mitigation activities in Least Developed Countries (LDCs) in general and Rwanda in particular. NAMAs (Credited NAMAs in particular) could potentially also make a positive contribution to adaptation as a certain share of proceeds from the NAMA credits could be set aside to support adaptation (in a similar way to the functioning of the CDM).

3.2 Where the Government of Rwanda could focus efforts to develop climate change projects benefiting SLM

In order to help develop climate change mitigation and adaptation projects in Rwanda, the Government of Rwanda could focus on the following:

Support capacity building and awareness raising efforts in Rwanda: Support the in-country mapping of AFOLU activities, and conduct a gap analyses to

support the preparation and implementation of concrete capacity building and pilot activities. This could include assisting with awareness raising campaigns that inform relevant national UNCCD stakeholders about the outcomes and the relevance of the negotiations on AFOLU;

Partner or join forces with donors/development partners with regard to the provision and implementation of awareness raising, capacity building and technical support campaigns, including through the provision of co-funding;

Raise in-country awareness and capacity with other development partners on the technical aspects and requirements of various adaptation funding sources, including the Adaptation Fund.

Carefully prepare for negotiations in the international climate change arena: Support the political and technical discussions on AFOLU within Rwanda through the

provision of underlying analyses with regards to the potential and options for the best possible inclusion of AFOLU relevant activities in a post-2012 agreement to allow Rwanda to benefit from increased climate change financing;

Gather information on the necessary CDM reforms that will promote Rwandas access to climate change financing.


Page 39 of 45

Provide technical assistance for the development and implementation of mitigation and adaptation projects: Collaborate with development partners to jointly identify and promote carbon market

opportunities in Rwanda through the provision of technical expertise with regards to mobilizing resources and raising funding;

Support the funding of identified project or program opportunities through assistance with preparing relevant proposals, preparing sales contracts and finding interested buyers and/or investors;

In collaboration with other development partners provide technical assistance to projects and programs in the elaboration of adaptation funding proposals.

A task force should be established that would be in charge of preparing CC/SLM projects;

Efforts should be made by CC/SLM actors to elaborate competitive CC/SLM projects to attract potential donors;

Coordination mechanisms describing who is doing what in order to share information and experience should be established as well as create synergy among CC/SLM programmes and projects.

Support and encourage decentralised entities and local communities to plan and own CC/SLM initiatives

Operationnalise Kigali Declaration on Climate Change by Local Governments of 27November 2009

Plan and evaluate climate change initiatives in annual Districts performances contracts

Encourage and support local communities to implement climate change activities at family level.


Page 40 of 45

The proposed road map for integrating climate change financing into SLM financing in Rwanda involves carrying out activities as well as a number of studies aimed at creating an enabling policy environment with respect to climate change in Rwanda. It will also involve a step by step process leading to the development of two pilot projects (one on adaptation and another on mitigation) that would provide practical experience that will in future guide the development of a bigger project on climate change. The road map is as follows

1. Fast truck and lobby for approval of NAP and make it dynamic 2. Carry out a study to streamline institutional framework for effective and efficient

coordination of climate change in Rwanda( formation of a task force, its roles and responsibilities, its location, involvement of all stakeholders etc)

3. Carry out a study detailing climate change activities, their location and magnitude, implementation challenges, and determine key priority activities and area of interventions

4. Identify CC-SLM priorities to start with 5. Development of two pilot projects

Activities Sub-activities Responsible

Calendar Partners

1. Fast truck and lobby for approval of NAP and make it dynamic 1.1 Lobby technical Ministries to take NAP for cabinet discussion

1.1.1 Update NAP according to Prime Ministers Office observations 1.1.2 Develop cabinet paper 1.1.3 Organize NAP technical committee meetings

MINERENA June-August 2011

MINAGRI

1.2 Organise a stakeholders meeting on their roles in the NAP implementation

1.2.1 Conept note on the workshop 1.2.2 Identify more stakeholders and encourage them and existing ones to participate in the workshop

Rwanda National Resources Board (RNRB)

September 2011

MINAGRI MINECOFIN, Development partners, Civil Society and Private Sector

2. Study coordination mechanism and communication strategy for SLM-CC activities 2.1 Establish taskforce to coordinate and provide technical advice on SLM-CC activities

2.1.1 Develop TORs for the TF 2.1.2 Appoint the Task Force members

MINIRENA October 2011

MINAGRI, MININFRA, MINECOFIN

2.2 Conduct a study to find a single coordination mechanism and communication strategy that would hormonise and coordinate

2.1 Develop TORs for the study 2.2.Implement the findings of the above study

RNRB/TF November2011

MINAGRI


Page 41 of 45

Activities Sub-activities Responsible

Calendar Partners

SLM-CC issues 2.3 Establish SLM CC Platform involving all stakeholders including private sector

2.3.1 Identify its composition 2.3.2 Define its roles and responsibilities 2.3.3 Organise meetings and elections of its leaders

RNRB/TF December 2011

MINAGRI MINECOFIN

3. Study detailed climate change activities (stocktaking), their location and magnitude, implementation challenges, and determine priority activities and area of interventions 3.1 Identify existing CC activities and linkage with SLM and determine priority activities CC-SLM and areas of intervention

3.1.1 Develop TORs for the study 3.1.2 Implement the results of the study

January-Feb. 2012

MINAGRI

4. Implementation of priorities CC-SLM to start with as pilot activities 4.1 Select 2 priorities to start with

4.1.1 Rank priorities 4.1.2 Select area from which to start based on the most needy 4.1.3 Select best options based on impact /budget

RNRB/TF February 2012

5. Development of pilot projects and implementation 5.1 Develop SLM-CC projects

5.1.1 Project Concept note 5.1.2 Consultations with stakeholders 5.1.3 Baseline study for the project 5.1.4 Development of the project document

RNRB/TF

March-May12

MINAGRI, MINECOFIN MININFRA Development partners

5.2 Negotiation with the donor and signature of financing agreement

5.2.1 Meeting with development partners 5.2.2 Financing agreement developed and signed

MINIRENA RNRB/TF

June 2012 MINECOFIN,MINAFFET

5.3 Beginning of SLM-CC project Implementation

5.3.1 Launch of project 5.3.2 Recruit project staff

MINIRENA RNRB/TF

July 2012 MINAGRI, MINALOC , Districts

At the end of the project impementation and from the experiences and lessons learnt the Task Force will be transformed into the National Commission to combat Desertification and Land Degradation as provided for in the NAP implementation mechanism arrangements.This National Commission to Combat Desrtification and Land Degradation will built on the Task Forces work and will deal with CCD/NAP


Page 42 of 45

implementation for SLM and will encourage better integration and synergy between CCD/SLM and CC activities and financing mechanisms/strategies.


Page 43 of 45

4 References Adger, W., Agrawala, S., Mirza, M., Conde, C., OBrien, K., Pulhin, J., et al. (2007). Assessment of adaptation practices, options, contraints and capacity. In M. Parry, O. Canziani, J. Palutikof, P. v. Linden, & C. Hanson, Climate Cahange 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (pp. 717-743). Cambridge, UK: Cambridge University Press.

Bapna, M., & McGray, H. (2008). Financing adaptation: opportunities for innovation and experimentation. Washington DC: World Resource Institute (WRI).

FAO. (Accessed Nov 2010). Africover. Available at: http://www.africover.org/system/area.php?place=11 .

IDS. (2006). Overcoming the barriers. Mainstreaming climate change adaptation in developing countries. Institute for Development Studies (IDS).

International Monetary Fund (IMF), 2008. Rwanda: Poverty Reduction Strategy Paper. Available at: http://www.imf.org/external/pubs/ft/scr/2008/cr0890.pdf .

International Monetary Fund (IMF), 2010. Povert Reduction Strategy Papers (PRSP). Available at: http://www.imf.org/external/np/prsp/prsp.asp .

Ministry of Agriculture and animal resources (MINAGRI), 2010. Etude sur lanalyse des ressources et mcanismes de financement internes, externes et novateurs dans le cadre du dveloppent de la Stratgie de Financement Intgre pour la Gestion Durable des Terres au Rwanda, Kigali.

Ministry of Forestry and Mines (MINIFOM), 2010. Elaboration de la stratgie de coordination et renforcement des synergies entre les conventions de Rio et les autres conventions et programmes en rapport avec la gestion des ressources naturelles au Rwanda, Kigali.

Ministere des ressources naturelles (MINIRENA), 2009. Plan d'action national de lutte contre la desertification et la degradation des terres au Rwanda (PAN - LCD). Draft document, not published.

Ministry of Lands Environment Forestry Water and Mines. (2006). National Adaptation Programme of Action to Climate Change. NAPA - Rwanda. Available at: http://unfccc.int/cooperation_support/least_developed_countries_portal/submitted_napas/items/4585.php.

MINITERE, 2003. National Strategy and Action Plan for the Conservation of Biodiversity in

Rwanda. Ministry of Lands, Resettlement and Environment (MINITERE), Kigali.

MINITERE, 2006. National Adaptation Programmes of Action (NAPA) To Climate Change.

Ministry Of Lands, Environment, Forestry, Water and Mines (MINITERE), Kigali.


Page 44 of 45

ODI. (2009). Climate Funds Update: Cool Earth Partnership. Available at: http://www.climatefundsupdate.org/listing/cool-earth-partnership.

REMA. (Accessed Nov 2010). Details for the 2009 Rwanda Grid Emission Factor. Available at:http://www.rema.gov.rw/dna/index.php?option=com_docman&task=doc_details&gid=24&Itemid= .

REMA. (2010). Evaluation des options d'attenuation des emissions de GES et de renforcement de puits. Not yet published.

REMA. (2009). Rwanda State of Environment and Outlook. Available at: http://www.rema.gov.rw/soe/ .

REMA (2006). Economic Analysis Of Natural Resource Management In Rwanda. Rwanda

Environment Management Authority (REMA), Kigali.

REMA (2008). Integrated Management of Critical Ecosystems (IMCE). Rwanda Environment

Management Authority (REMA), Kigali.

ROR (2000). Rwanda Vision 2020. Ministry of Finance and Economic Planning, Republic of

Rwanda (ROR), Kigali.

ROR (2004). Document De Politique Agricole. Ministry of Agriculture and Animal Resources,

Republic of Rwanda (ROR), Kigali.

ROR (2004). National Environmental Policy 2003. Ministry of Lands, Environment, Forestry,

Water and Mines,Republic of Rwanda (ROR), Kigali.

ROR (2004). Politique Nationale des Forts. Ministre des Terres, de la Rinstallation et de la

Protection de lEnvironnement (MINITERE), Kigali.

ROR (2004). Strategic Plan for the Transformation of Agriculture in Rwanda (PSTA I).

Ministry of Agriculture and Animal Resources, Republic of Rwanda (ROR), Kigali.

ROR (2004a). National Land Policy for Rwanda. Ministry of Natural Resources, Republic of

Rwanda (ROR), Kigali.

ROR (2004b). National Human Settlement Policy. Ministry of Infrastructure, Republic of

Rwanda (ROR), Kigali

ROR (2007). Economic Development and Poverty Reduction Strategy, 2008-2012. Ministry of

Finance and Economic Planning, Republic of Rwanda (ROR), Kigali.

ROR (2008). Strategic Plan for the Transformation of Agriculture in Rwanda Phase II (PSTA

II). Final Report. Ministry of Agriculture and Animal Resources, Republic of Rwanda (ROR),

Kigali.


Page 45 of 45

Twagiramungu, F. (2006). Environmental Profile of Rwanda. Kigali, Rwanda: European Commission.

UNDP. (2010). Human Development Report 2010. The real wealth of nations: pathways to human development. Available at: http://hdr.undp.org/en/media/HDR_2010_EN_Complete

cc-rwanda country mapping-final (1)

Documents

rwanda country mapping

climate change mitigation

climate change projects

international development

climate change finance

adaptation projects

land degradation9

european union