Shaping climate-friendly fiscal and economic policy

Context

Rwanda is extremely vulnerable to climate change, which is putting growing pressure on many economic sectors, regions and population groups. It also threatens to exacerbate inequalities. Reducing greenhouse gas emissions and better adapting the country to the impacts of climate change requires substantial investment by the Rwandan state, international cooperation and private investors.

Climate change and green economic growth top the Rwandan development agenda. The country is therefore designing an economic and fiscal policy that is climate-friendly and for the long term, and it is further developing its institutional capacities. This is creating the conditions for channelling capital flows into climate-relevant projects and economic activities and securing the right to a healthy environment for the people in Rwanda and, in particular, future generations.

Objective

The regulatory and market economy conditions for making public and private capital available for a socio-environmental economic transformation in Rwanda are improved.

Approach

The project operates in three closely interlinked areas of activity.

It helps make more and better information available for decisions in the area of national climate finance.

The project also improves the analytical and technical capacities of the Rwandan finance institutions for implementing a climate-oriented fiscal and economic policy. For example, it provides advice on shaping policies and assessing their impacts, implementing Rwanda’s green taxonomy and reporting.

In addition, the project supports relevant authorities in developing climate-oriented regulatory and supervisory instruments.

Last updated: May 2025