The Ministry of Environment has secured Rwf154.4 billion in the 2024/2025 fiscal budget, which commenced in July. This year's budget theme is "Sustainable Economic Transformation through Fiscal Consolidation and Investment in Climate Change Mitigation and Adaptation for Improved Livelihoods."
According to the Ministry of Finance and Economic Planning (MINECOFIN), 43 percent of the Ministry of Environment's budget has been allocated to climate change adaptation efforts. Adaptation encompasses a wide range of measures aimed at reducing vulnerability to the impacts of climate change.
Given Rwanda's high level of vulnerability, the focus on adaptation interventions accounts for 43 percent of the total climate change-related budget allocation.
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Mitigation-related interventions receive 20 percent, while the remaining 37 percent is directed towards interventions that fall under both categories.
Key Adaptation Interventions
Adaptation initiatives include post-harvest handling, climate-smart crop production, increased irrigation systems, landscape restoration, environmental compliance and enforcement, sustainable agriculture practices, mainstreaming environment and climate change considerations, as well as developing capacities to increase community resilience against climate change effects.
Overall, climate change-related interventions in the 2024/2025 fiscal year account for an estimated 10 percent of the total government budget. Disaster management priorities within this allocation focus on enhancing disaster preparedness, response, and recovery.
This includes improving early warning systems, disseminating warnings to at-risk populations, implementing quick mitigation interventions such as house retrofitting, and providing relief and recovery assistance to those affected by disasters.
Of the total allocation to environmental interventions across all sectors, 85 percent is dedicated to adaptation, 13 percent to mitigation, and 2 percent to interventions that encompass both. This allocation underscores Rwanda's vulnerability to climate change, particularly in areas prone to soil erosion, siltation, landslides, and flooding.
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In the agriculture sector, adaptation got the lion's share, with 94 percent of the total allocation. Mitigation and combined interventions share the remaining 6 percent equally. Key adaptation interventions in agriculture include the rehabilitation of irrigation schemes, the construction of terraces, and agroforestry activities.
Regarding water and sanitation, 58 percent of the sub-sector's allocation focuses on adaptation, while 42 percent addresses both adaptation and mitigation. In contrast, all energy-related interventions focus exclusively on mitigation, while those in transport, education, and health are geared towards adaptation.
Budget allocations for climate change-related interventions are expected to increase in nominal terms over the medium term, rising from Rwf579.8 billion in 2024/25 to Rwf631.2 billion in 2025/26, and Rwf667.4 billion in 2026/27.
Call for Inclusive Planning
The government has urged all stakeholders, both governmental and non-governmental, to incorporate climate change impacts into their planning and budgeting processes. Climate budget tagging is also encouraged to ensure efficient resource allocation and expenditure tracking.
As the world prepares for the climate talks in Baku, Azerbaijan later this year, African climate finance practitioners recently convened to discuss expectations for the new climate finance goal, ahead of the African Group of Negotiators meeting held in Nairobi from August 14 to 16.
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The consultations highlighted the need for Africa to assert its urgency in shaping the future of climate finance.
Experts emphasized the necessity for developed countries to commit at least $5.9 trillion by 2030, in response to the growing needs and priorities of developing countries. This funding is essential for financing adaptation, mitigation, just transitions, and addressing loss and damage.
Rwanda has identified a $7.1 billion funding gap to meet its climate action targets, planning to invest $11.04 billion to cut carbon emissions by 4.6 million tonnes and adapt to climate change effects. Of the $5.4 billion required for adaptation projects by 2030, 40 percent ($2.1 billion) is expected to be sourced domestically, while 60 percent ($3.3 billion) will need to come from international sources.
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The African Group of Negotiators insists that these funds should primarily come from the public coffers of developed nations, avoiding debt instruments that could exacerbate the debt burden of developing countries.
The experts also cautioned developed countries against derailing this year's climate talks by introducing discussions on the contributor base, urging them to adhere to the UN Climate Convention and the Paris Agreement, which place the responsibility for leading the mobilization of finance to support climate action on these nations.
"The post-2025 finance goal must be aligned with the needs of developing countries to enable a fair transition, support adaptation, address loss and damage, and set a low-carbon, climate-resilient path," said Julius Mbatia, a climate finance expert. He added that Africa's request for $6.5 trillion by 2030 reflects the necessity of a needs-based finance goal.
