Climate Finance: Lessons from Rwanda

This policy briefing examines how Rwanda has successfully accessed and managed climate finance, highlighting the role of its national strategies, inclusive local needs assessments, and the establishment of a dedicated climate fund (FONERWA) to strengthen project development and institutional capacity.

• Rwanda has integrated climate resilience into its national economic planning through the Green Growth and Climate Resilient Strategy (GGCRS), which is based on the country's Vision 2020 and the Economic Development and Poverty Reduction Strategy 2013–2018. This strategy focuses on 'climate-compatible development (CCD)', which integrates climate threats and opportunities into development strategies and aligns developmental goals with climate strategies.
• To manage the cross-cutting nature of climate change, Rwanda utilizes 'joint sector reviews'. These platforms facilitate communication and consistency in policy by bringing together the public sector, private sector, NGOs, donor organisations, and development finance institutions. For example, the natural resources sector is co-chaired by the Ministry of Natural Resources (MINIRENA) and the UN Development Programme.
• Rwanda employs a community-led participatory system called 'ubudehe' to ensure climate projects meet local needs. Through this system, community members self-assess and rank themselves on a scale of one to six based on vulnerability and income. These rankings inform District development plans (DDPs), ensuring that projects target the most vulnerable individuals first.
• The establishment of the Fund for Environment and Climate Change (FONERWA) has been central to Rwanda's ability to access climate finance. Originally capitalised by the Rwandese government and the UK's Department for International Development (DFID), with further support from the German government, it is described as Africa's largest demand-based climate fund.
• FONERWA increases the volume of fundable projects by providing detailed assistance to develop proposals that show potential, rather than simply rejecting them. It also lowers barriers for smaller, less financially viable projects that target remote and poor communities, which typically face high transaction costs during preparation.
• The briefing recommends that other African countries establish dedicated climate funds similar to FONERWA to manage funding, prepare projects, and monitor implementation. It also emphasizes the necessity of including monitoring and evaluation (M&E) plans in all projects to ensure long-term sustainability and to provide the evidence needed to leverage further funding.

APA

Chennells, M. (2015). Climate Finance: Lessons from Rwanda. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2015/06/Policy-Briefing-139.pdf

Chicago

Chennells, Matthew. Climate Finance: Lessons from Rwanda. South African Institute of International Affairs, 2015. https://saiia.org.za/wp-content/uploads/2015/06/Policy-Briefing-139.pdf.

Wikipedia

{{cite report |last1=Chennells |first1=Matthew |title=Climate Finance: Lessons from Rwanda |publisher=South African Institute of International Affairs |date=June 2015 |url=https://saiia.org.za/wp-content/uploads/2015/06/Policy-Briefing-139.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chennells2015climate, author = {Chennells, Matthew}, title = {{Climate Finance: Lessons from Rwanda}}, institution = {South African Institute of International Affairs}, year = {2015}, month = jun, url = {https://saiia.org.za/wp-content/uploads/2015/06/Policy-Briefing-139.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }