Presentation by Alex Mulisa from FONERWA at the Low Emissions Advantage event on the sidelines of COP23. More information about the event series: https://bit.ly/AgAdvantage

1. FONERWA:
Financing Rwanda’s Green
Growth & Climate Resilient
Development

2. National Context - Climate
Change financing challenges
 Climate modeling projects
rises of up to 2.5°C by the
2050s) and increasingly
intense rainfall events.
 Increased risk of flooding
(and droughts in some
areas), landslides and soil
erosion – requires agr-inputs
to ensure food security
 Additional economic costs: a
loss of ~1% of GDP per year
by 2030 (excludes the future
effects of floods/extreme
events)
 Estimated Annual costs of
climate change estimated up
to $300m per year

3. Agriculture in GGCRS &
NDCs
1. Sustainable intensification of small scale farming
2. Agricultural diversity for local & export markets
3. IWRM and Planning
4. Sustainable Land Use Management & Planning
5. Low carbon mix of power generation for national grid
6. Sustainable small-scale rural energy installations
7. Green industry & private sector investment
8. Climate compatible mining
9. Efficient resilient transport systems
10. Low carbon urban settlements
11. Ecotourism, Conservation & Promotion of PES
12. Sustainable forestry, agroforestry & biomass energy
13. Disaster Management & Disease Prevention
14. Climate data & projections

4. Funding Sources
Environmental fines and
fees
Environmental
Impact Assessment fees
Proceeds from
Forestry & Water Funds
Seed financing from
domestic stakeholders
Other
environmental revenue
Bilateral & multilateral
development partners
International environment &
climate funds
Internal
External
Thematic Financing Windows
Conservation &
Sustainable Natural
Resources
Management
Energy, R&D &
Technology
Transfer &
Implementation
Environment &
Climate
Change
Mainstreaming
Environmental Impact
Assessment
Monitoring &
Enforcement
Disbursal Instruments Beneficiaries
NGOs / CSOs
Govt Bodies
Commercial banks
Government Bodies
NGOs/CSOs
Commercial Banks
Commercial Banks
Business Enterprises
Non-bank Finance
Institutions
Individual or Group
Loans
Grant Component
In-kind (Proposal
Development)
Low Interest
Loans
Guarantee
Component
Investment
Component
Other Innovative
Instruments
Short-term
Medium-term
Long-term
FONERWA: FUND DESIGN
Adapted from FONERWA website and brochure developed by CDKN & Centre for International Development and
Training
4
Oversight & Management FONERWA Technical Team
FONERWA Management Committee Fund Management Team

5. Click to edit Master title style
Click to edit Master subtitle style
PORTFOLIO OF PROJECTS
Central
Government
Private
sector
Districts:
CALTAS, RWARRI,
BAMPOREZE
NGOs:
SACR; ARCOS,
WHH, AVVIS
Meteo Rwanda:
Strengthening Rwanda’s
weather and climate
services
Send A Cow Rwanda:
sustainable land management
and environmental rehabilitation
Muhanga, Ngororero
District/Caritas:
sustainable land
management
4 separate District projects
(Musanze, Karongi,
Gisagara, Rulindo) targeting
integrated environmental
management (including
components on land, water,
clean energy, watershed
protection)
MINILOC: Supporting
Districts to Green
their District
Development Plans
Rwanda Energy
Efficiency and Cleaner
Production Centre:
Establishing and piloting a
national electronic waste
management strategy
Subsidised loan for
construction of a mini-
hydro power plant
Grant for research into
commercial potential of
Rwanda’s native
mushroom species
Subsidised loan for
piloting technology to
turn rice processing
waste into energy
Grant to support
testing and piloting of
green, affordable
building construction

6. CLIMATE FINANCE – SOLUTIONS
FOR SMALLHOLDER FARMERS??
FONERWA in a transition to strategic and
innovative financing
- a pilot in the Tea and Coffee sub-sector on the
impacts of climate change on output for small
holder farmers in the sub-sectors to guide future
investments in tea and the scaling up the slopes
- Climate Smart Lending Platform, a Climate
Financing platform, provides an innovative
mechanism for financing climate responsive
production systems targeting small holder farmers
– Linking financial returns climate benefits in the
credit approval and credit.
- Wood Foundation (Social enterprise) - a value-
chain approach to increase tea output, climate
resilience of small holder farmers and improving
livelihoods through partnership with Unilever to
create markets.
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7. • Projected funding streams with limited private sector – Multi-
lateral (GCF, CIF) and Bilateral/GoR have significant focus on
agriculture with co-benefits
• Climate risk screening of low carbon growth pathways
Opportunities for private investments biofuels, on-farm carbon
management (e.g. zero grazing, woodlots)
• Synergistic adaptation – low carbon project opportunities
through watershed protection, agro-forestry and sustainable
land-use management
• Multi-sectoral consideration - Enhance multi-sectoral approach
to the Fund’s investment to promote low Carbon options e.g.
solar powered irrigation applications.
CHALLENGES/OPPORTUNITIES IN
CLIMATE SMART AGRICULTURE

8. THANK YOU
www.fonerwa.org