7 July 2013

1. 7 July 2013 GOVERNMENT OF THE REPUBLIC OF RWANDA G20 DEVELOPMENT WORKING GROUP (DWG) WORKSHOP ON INCLUSIVE GREEN GROWTH Moscow, Russia Presentation: Mobilisation of private resources for financing inclusive green growth

2. Presentation Outline • Country context. • Policies, Legislations, strategies and programs for Private Green Investments • Market failures and barriers hampering Green investments • Current Initiatives and Achievements • Challenges and opportunities for Green Private Investment • Role of International Community to mobilize private investment for green growth • Rwanda’s Green Growth Strategy • Rwanda Fund for Environment and Climate Change (FONERWA)

3. Rwanda: A country of a thausand Hills

4. RWANDA 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.

5. RWANDA 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.

6. National policy and strategic orientation for Private Green Investments • Vision 2020, MDGs, 7YGP & EDPRS II (2013-2018) • Policies: Environment and Natural Resources (ENR); Economic and othersectors • Legislations: Organic Law on environment, Land law, Forest law, Mininglaw, Water law • National Strategy for Climate Change and LowCarbonDevelopment (Green Growth and ClimateResilientStrategy) • Cross sectoral in scope and includes a sustainablefinancingmechanism for environmentalsustainability, climate change and green growth • PrivateSectorDevelopmentStrategy

7. Market failures and barriers hampering Green 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

8. Current Initiatives and Achievements • Master plans: Land; Kigali City and Water Resource and Irrigation • Drive towardsenergyefficiency: methane extraction and geothermal exploration • Environmentally sensitive packaging products • National policy on Ban of Plastic Bags • Sustainablefinancing: Rwanda Environment and Climate change Fund (FONERWA) • Clean DevelopmentMechnism (CDM) • Sustainableagriculuresystems and practices • One cow per family program • Soilerosion control measures • MotorVehicle Inspection Centre to regulateemmissions

9. Challenges and opportunities for Green Private Investment

10. Other critical opportunities for private sector based green investments • 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.

11. Rehabilitation of Rugezi Wetland Complex Tourism revenue sharing to benefit local communities Ban on plastic bags use Successful Green village pilots has demonstrated poverty reduction benefits Green Economy Success Stories

12. Green Growth Strategy Programmes of Action • 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

13. MURAKOZE! THANK YOU VERY MUCH!