Rwanda is seeking an additional $7 billion to implement its climate action plan through 2035 after mobilizing about $5 billion for environmental and climate-related programs.
The funding requirement is set out in Rwanda’s updated Nationally Determined Contribution, known as NDC 3.0, which covers the period from 2025 to 2035, according to a report by Taarifa.
The plan submitted to the United Nations Framework Convention on Climate Change estimates that implementation will cost approximately $12 billion.
About $7 billion of the total is earmarked for climate adaptation, including measures to protect communities and infrastructure from floods, landslides and droughts. Nearly $5 billion is intended for mitigation efforts aimed at reducing greenhouse gas emissions.
Rwanda’s plan targets a reduction of up to 53% in net greenhouse gas emissions by 2035, compared with projected business-as-usual levels. Domestic measures are expected to deliver a 7% reduction, while a further 46% will depend on international finance, technology transfer and technical assistance.
The plan classifies about $2.14 billion, or roughly 18% of the total requirement, as unconditional financing to be provided through domestic resources. A further $9.89 billion is conditional on international support.
Teddy Mugabo Mpinganzima, chief executive of the Rwanda Green Fund, said the government was considering a broader range of financing instruments, including green bonds and other securities that could attract domestic investors. The strategy reflects Kigali’s efforts to reduce its reliance on conventional development assistance and expand private-sector participation in climate investment.
Rwanda’s NDC 3.0 says floods and landslides killed 131 people in 2023 and caused losses and damage exceeding $415 million in the country’s northern, western and southern provinces. The plan also warns that climate change could reduce annual gross domestic product by between 5% and 7% below baseline levels by 2050 without adequate adaptation.
Priority areas include climate-resilient agriculture, renewable energy, forest restoration, water security, electric mobility, waste management and cleaner industrial production.
In January, the Rwanda Environment Management Authority introduced a standardized fee structure for new carbon-market projects and transactions. Under the rules, land-based projects must allocate at least 30% of revenues or carbon credits to local communities and landowners.
The framework applies to newly launched projects, while existing projects are generally exempt unless they enter a new phase. Fees are paid into the Rwanda Green Fund, which is intended to ensure that the government and affected communities benefit from carbon-market activity.
