A Sustainable Asset Valuation Assessment of Nature-Based Solutions in Kigali, Rwanda

The assessment finds that nature-based solutions (NbS) in Kigali—including afforestation, reforestation, agroforestry, and urban tree planting—are economically viable, with a discounted benefit-to-cost ratio (BCR) of 2.09 and cumulative net benefits of RWF 17,039 million from 2025 to 2050. The primary economic driver is the avoidance of flood damage to infrastructure, valued at RWF 17,311 million, alongside significant intangible benefits from reduced water pollution and carbon sequestration. Sensitivity analyses indicate that higher valuations for carbon and water pollution further increase the project's economic viability, with BCRs reaching up to 2.94.

• The implementation of NbS interventions in Kigali is projected to be economically viable over a 25-year period (2025–2050), yielding a discounted benefit-to-cost ratio (BCR) of 2.09 and cumulative discounted net benefits of RWF 17,039 million.
• The most significant economic impact of the NbS scenario is the avoidance of flood damage to infrastructure, which is valued at a cumulative discounted RWF 17,311 million and corresponds to a reduction in damage for approximately 687 buildings.
• Beyond infrastructure, the project generates substantial intangible and social benefits, including RWF 5,349 million from avoided water pollution health costs, RWF 4,337 million from carbon sequestration, and RWF 2,875 million from employment creation.
• Sensitivity analyses demonstrate that the project's viability increases under higher valuation scenarios: a high social cost of carbon (USD 40/ton) raises the BCR to 2.60, while a combined high cost of carbon and water pollution increases the BCR to 2.94.
• Spatially explicit analysis using InVEST models indicates that the 'Restored LULC scenario' would increase carbon storage by approximately 30% (600,000 tons), increase habitat quality by nearly 19%, and increase runoff retention by roughly 5% (1,700,000 m3).
• The project's total direct costs are estimated at RWF 15,563 million, consisting of RWF 3,579 million for implementation and RWF 11,984 million for operation and maintenance.

APA

Kapetanakis, M. (2026). A Sustainable Asset Valuation Assessment of Nature-Based Solutions in Kigali, Rwanda. International Institute for Sustainable Development. https://www.iisd.org/system/files/2026-01/nature-based-solutions-kigali.pdf

Chicago

Kapetanakis, Michail. A Sustainable Asset Valuation Assessment of Nature-Based Solutions in Kigali, Rwanda. International Institute for Sustainable Development, 2026. https://www.iisd.org/system/files/2026-01/nature-based-solutions-kigali.pdf.

Wikipedia

{{cite report |last1=Kapetanakis |first1=Michail |title=A Sustainable Asset Valuation Assessment of Nature-Based Solutions in Kigali, Rwanda |publisher=International Institute for Sustainable Development |date=January 2026 |url=https://www.iisd.org/system/files/2026-01/nature-based-solutions-kigali.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kapetanakis2026sustainable, author = {Kapetanakis, Michail}, title = {{A Sustainable Asset Valuation Assessment of Nature-Based Solutions in Kigali, Rwanda}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = jan, url = {https://www.iisd.org/system/files/2026-01/nature-based-solutions-kigali.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }