Rwanda’s President Paul Kagame has launched “Ireme Invest,” a $104 million green investment facility that will support the private sector in developing the climate-friendly economy in his country.
Speaking on the sidelines of the 27th United Nations Climate Change Conference (COP27) in Sharm-el-Sheikh, Egypt, President Kagame informed the governments of France, Sweden and the United Kingdom, as well as the European Investment Bank (EIB) and the Green Climate Partnership Fund have all also invested in the Green Investment Facility.
According to him, the government of Rwanda intends to strengthen its support to the private sector, particularly in the implementation of climate-friendly economy projects.
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The green investment facility will provide financing for the implementation of green and resilient projects in Rwanda. The president said the aim is to accelerate the transition to a low-carbon economy in the East African country.
The fund will also target projects in key sectors, including renewable energy deployment (solar and hydro), improving energy efficiency in industrial processes, introducing vehicle emission standards, deploying electric vehicles and promoting the use of biogas on farms.
“Climate adaptation requires big changes in the way the world produces and consumes energy, in the way people move, in what they eat and in the way it is grown,” said President Paul Kagame at the launch of the Ireme Invest fund.
The Development Bank of Rwanda (BRD) has invested seed capital in the fund. The bank builds on a strong track record of the Rwanda Green Fund (FONERWA).
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The new green investment fund is expected to enable the East African country to move forward with the implementation of its climate strategy unveiled in 2020. Rwanda’s plan includes 10 projects worth $2.4 billion planned by the Rwandan government to meet the Paris Agreement’s 2030 targets. One of these targets is the reduction of greenhouse gas (GHG) emissions. In 2015, these emissions were estimated at 5.3 million tonnes in Rwanda. Experts estimate that they could double by 2030.