Potential Sources of Funding to Target for Support in Environmental Mainstreaming. Scoping Report

Transcription

1 Potential Sources of Funding to Target for Support in Environmental Mainstreaming Scoping Report 30 th September 2016

2 Table of Contents Executive Summary... 9 Report Proper Introduction Current funding situation for the agriculture sector Rwanda s access to international climate funds Rwanda s access to international climate funds Funds relevant to mainstreaming environment and climate change concerns into agricultural development in Rwanda Next steps Annexes Annex 1 Development partners in Rwanda s agriculture sector International Fund for Agricultural Development (IFAD) Project for Rural Income through Exports (PRICE) National Sericultuture Centre (NSC) Climate Resilient Post-Harvest and Agribusiness Support Project (PASP) Kirehe community-based Watershed management Project (KWAMP) World Bank Third Phase of the Transformation of Agriculture Sector Program-for-Results (Pfor R) Project for Rwanda Rwanda Feeder Roads Development Project Third Rural Sector Support Project (RSSP3) Land Husbandry, Water Harvesting and Hillside Irrigation AF Landscape Approach to Forest Restoration and Conservation (LAFREC) Rwanda Pilot Program for Climate Resilience pipeline project Lake Victoria Environmental Management Project (LVEMP) European Union African Development Bank (AfDB) Livestock Infrastructure Support Programme (LISP) DFID Programme of Support to Agriculture Improving Market Systems for Agriculture in Rwanda (IMSAR) FONERWA Belgian Development Agency (BTC) Support to SPAT II USAID Scoping Report Resource Mobilisation for Environmental Mainstreaming 2

3 7.1 Rwanda Climate Services for Agriculture project Feed the future project FAO Africa Solidarity Trust Fund for Food Security NEPAD Gender, Climate Change and Agriculture Support Programme (GCCASP) UNDP Poverty and Environment Initiative (PEI) Decentralisation and Environmental Management Project II (DEMP II) Annex 2 International Climate Funds Multilateral climate funds Green Climate Fund Climate Investment Funds Pilot Programme for Climate Resilience Forest Investment Program Scaling Up Renewable Energy in Low Income Countries Program GEF Trust Fund - Climate Change focal area Least Developed Countries Fund Bilateral climate funds Annex 3 Other Projects Tables Table 1: Agriculture sector projects funded by development partners Table 2: List of multilateral climate funds and their relevance to Rwanda Table 3: Table 4: Disclaimer The British Government s Department for International Development (DFID) financed this work as part of the United Kingdom s aid programme. However, the views and recommendations contained in this report are those of the consultant, and DFID is not responsible for, or bound by the recommendations made. Lead Author: Debbie Caldwell QA d, in whole or in part, by: Charlotte Ellis Scoping Report Resource Mobilisation for Environmental Mainstreaming 3

4 Acronyms & Abbreviations ACIAR ADB AF Agri-TAF API ASAP ASIP ASTF BAU BEIS BHEARD BMUB BTC CAADP CCAFS CDD CDKN CDM CEO CER CGIAR CIAT CICA CIF CIP COMESA CPF CSA DECC DEFRA DEMP DFID Australian Centre for International Agriculture Research Asian Development Bank Adaptation Fund Agriculture Technical Assistance Facility Agro-Processing Industry Adaptation for Smallholder Agriculture Programme Agriculture Sector Investment Plan Africa Sustainable Transport Forum Birsa Agricultural University Department for Business, Energy & Industrial Strategy Borlaug Higher Education for Agricultural Research Development Federal Ministry for the Environment, Nature Conservation, Building & Nuclear Safety (Germany) Belgian Technical Cooperation Comprehensive Africa Agriculture Development Programme CGIAR Research Program on Climate, Agriculture & Food Security Community Driven Development Climate Development & Knowledge Network Clean Development Mechanism Chief Executive Officer Certified Emission Reductions Consultative Group for International Agricultural Research International Centre for Tropical Agriculture Agricultural Information & Communication Centre Climate Investment Fund Crop Intensification Programme Common Market for Eastern & Southern Africa Country Programming Framework Climate Smart Agriculture Department for Energy & Climate Change (UK) Department for Environment, Food & Rural Affairs (UK) Decentralisation & Environment Management Project Department for International Development Scoping Report Resource Mobilisation for Environmental Mainstreaming 4

5 DG DRR EAC EADD EBRD EDA EDF ENACTS ENRM EOI ESSA EU EUR FAO FCO FCPF FFLS FFS FIP FONERWA FSP GBP GCCA GCCASP GCF GEF GEFTF GGCRS GGGI GHG GIZ GoR ICF ICI ICRAF IDB IFAD Director General Disaster Risk Reduction East African Community EAST Africa Dairy Development European Bank for Reconstruction & Development Enhanced Direct Access European Development Fund Enhancing National Climate Services Environmental & Natural Resource Management Expression of Interest Environmental & Social Systems Assessment European Union Euros Food & Agriculture Organisation of the United Nations Foreign & Commonwealth Office Forest Carbon Partnership Facility Farmer Field & Life Schools Farmer Field Schools Forest Investment Program National Climate & Environment Fund Full-sized Projects Pounds Sterling Global Climate Change Alliance Gender, Climate Change & Agriculture Support Programme Green Climate Fund Global Environment Facility GEF Trust Fund Green Growth Climate Resilience Strategy Global Green Growth Institute Greenhouse Gas Deutsche Gesellschaft für Internationale Zusammenarbeit Government of Rwanda International Climate Fund International Climate Initiative World Agroforestry Centre Inter-American Development Bank International Fund for Agricultural Development Scoping Report Resource Mobilisation for Environmental Mainstreaming 5

6 IFC ILRI IMSAR IPM IRI IUCN IWRM KWAMP LAFREC LDC LDCF LIP LISP LULUCF LVEMP LWH LWS MCC MDBs MIE MINAGRI MINECOFIN MINELA MINICOM MININFRA MINIRENA MINITERE MSPs MWs NAEB NAMA NAPA NDA NEPAD NICFI NIE NSC International Finance Corporation International Livestock Research Institute Improving Market Systems for Agriculture in Rwanda Integrated Pest Management International Research Institute for Climate & Society international Union for Conservation of Nature Integrated Water Resource Management Kirehe Community Based Watershed Management Project Landscape Approach to Forest Restoration & Conservation Least Developed Country Least Developed Countries Fund Livestock Intensification Programme Livestock Infrastructure Support Programme Land Use, Land-use Change & Forestry Lake Victoria Environmental Management Project Land Husbandry, Water Harvesting & Hillside Irrigation Livestock watering system Millennium Challenge Corporation Multilateral Development Banks Multilateral Implementing Entity Ministry of Agriculture & Animal Resources Ministry of Finance & Economic Planning Ministry of Environment & Lands (Rwanda) Ministry of Trade & Industry Ministry of Infrastructure Ministry of Natural Resources Ministry of Lands Environment, Forests, Water & Mines (Rwanda) Medium-sized Projects Mega Watts National Agriculture Export Board Nationally Appropriate Mitigation Action(s) National Adaptation Programmes of Action National Designated Authority New Partnership for Africa s Development Norway's International Climate & Forest Initiative National Implementing Entity National Sericulture Centre Scoping Report Resource Mobilisation for Environmental Mainstreaming 6

7 NSOs OFP PASP PDCRE PEI PIDG PIF PMU PoSA PPCR PPP PPPMER PRICE PS PSTA PV RAB REDD REG REMA RIWSP RNRA RSFF RSSP SADC SC SCCF SDC SEDP SFA SIDA SIDS SLM SPCR SPIU SREP SWG NAMA Support Organisations Operational Focal Points Post-Harvest & Agribusiness Support Project Cash & Export Crops Development Project Poverty - Environment Initiative Private Infrastructure Development Group Project Identification Form Programme Management Unit Programme of Support for Agriculture Pilot Program for Climate Resilience Public-Private Partnership Rural Small & Microenterprise Promotion Project Project for Rural Income through Exports Permanent Secretary Strategic Plan for the Transformation of Agriculture Photo Voltaic Rwanda Agricultural Board Reducing Emissions from Deforestation & Forest Degradation Rwanda Energy Group Rwanda Environment Management Authority Rwanda Integrated Water Security Program Rwanda Natural Resource Authority Rwanda Silk Farmers Federation Rural Sector Support Project Southern Africa Development Community Steering Committee Special Climate Change Fund Swiss Development Cooperation Sustainable Energy Development Project Sustainable Food & Agriculture Swedish International Development Cooperation Agency Small Island Developing States Sustainable Land Management Strategic Program for Climate Resilience Single Project Implementation Unit Scaling-Up Renewable Energy Program for Low Income Countries Sector Working Group Scoping Report Resource Mobilisation for Environmental Mainstreaming 7

8 TA UK UN UNDP UNEP UNFCCC UNICEF US USAID USD USG WB WBG WFP WHO Technical Assistance United Kingdom United Nations United Nations Development Programme United Nations Environment Programme United Nations Framework Convention on Climate Change United Nations Children's Fund United States United States Agency for International Development United States Dollar United States Government World Bank World Bank Group World Food Programme World Health Organisation Scoping Report Resource Mobilisation for Environmental Mainstreaming 8

9 Executive Summary This report was commissioned by Agri-TAF to improve the team s understanding of the availability of and modalities of accessing external sources of finance for mainstreaming environment and climate change into agriculture development in Rwanda. With a number of major investment programmes drawing to a close, the Ministry is keen to identify and tap into new sources of financial support. Of particular interest are the international climate funds which provide significant amounts of funding for mitigation and adaptation projects. Rwanda s agriculture is well positioned to access these funds on both fronts as it is currently the largest emitting sector and because farmers are highly vulnerable to climate change due to their high dependence on rain-fed agriculture and other factors that limit their adaptive capacity such as the prevalence of rural poverty and land degradation. Rwanda is eligible to receive funding from most of the climate funds due to its Least Developed Country (LDC) status. However, the most relevant fund to promote mainstreaming of environment and climate change concerns (as well as gender and nutrition considerations) into agricultural development in Rwanda is the Green Climate Fund (GCF). MINIRENA has been accredited as a national entity for the GCF (as well as the Adaptation Fund but Rwanda has reached the country cap so cannot access this fund at present) and this fund has direct financing modality so funds are disbursed directly through MINIRENA. The GoR is also pursuing enhanced direct access (EDA) status which will allow for accredited institutions to receive an allocation of GCF finance and then make their own decisions on how to program resources. Agriculture is likely to feature prominently in these plans. There are a number of pipeline GCF projects at various stages of development. The most advanced is an integrated projects planned for Gicumbi district which includes a tea resilience component. GCF has released preparatory funding of 1.5 million for a number of feasibility studies. Agri-TAF also recently prepared a concept note proposing a USD 30 million mainstreaming project for MINAGRI which has been submitted to the fund for review. This will most likely be developed into a full proposal during 2016/17. Rwanda has also been highly successful in accessing other international climate funds (including the USD934.7 million Least Developed Countries Fund and the USD 3 billion Global Environment Facility), but MINAGRI s engagement with these investments and plans has been quite limited so far despite these investments including significant agricultural components. Currently, the most significant and relevant of these is the Climate Investment Facility which has approved preparatory funding to develop a Strategic Plan for Climate Resilience (which includes climate smart agriculture) and an investment plan for a Forest Investment Programme (which includes agro-forestry). As there are currently no funds available in the CIF to finance the plans, financing these plans will ultimately depend on GCF funding. Hence as part of the preparatory process, the respective intermediary organisations, the World Bank and the African Development Bank are planning to develop two concept notes to seek funding the Green Climate Fund. Going forward, Agri-TAF will work closely with FONERWA and facilitate close linkages between the sector and the intermediary organisations to ensure that the planned interventions align with national and sectoral priorities. Currently, other potential sources of funding for cross cutting issues (including climate, environment and gender) include: the USD 300 million Adaptation for Smallholder Agriculture Program (ASAP), the GEF Trust Fund (Agri-TAF will facilitate closer engagement between MINAGRI and the DG REMA who serves as the GEF focal point) the EU s million Global Climate Change Alliance (GCCA) the NAMA facility (for livestock and fertiliser mitigation actions - Agri-TAF will consult with FONERWA and MINAGRI to explore the potential for submitting a proposal in October) At the national level, another source of potential funding for addressing environmental and climate concerns in agriculture is FONERWA which manages the flow of climate funds in Rwanda. As a national basket fund for climate and environment, it has funded 31 projects many of which have substantial agriculture components channelled through districts. MINAGRI and RAB have not directly accessed funding to any great extent Scoping Report Resource Mobilisation for Environmental Mainstreaming 9

10 although MINAGRI recently secured financial support (USD 3 million) to pilot the mainstreaming of climate change into the tea and coffee sub-sectors. The design is being finalised by Agri-TAF and activities started in September Agri-TAF is also supporting the development of a proposal following a recent targeted call for mainstreaming proposals from FONERWA. In addition, Agri-TAF will monitor the the Adaptation Fund (AF) which recently decided to retain the country cap for the time being and the Least Developed Countries Fund (LDCF) as it has been accessed in the past but fund levels are currently depleted so there are currently limited prospects for accessing this fund. Agri-TAF will also consult with the EU delegation to determine the potential for accessing the EU s Global Climate Change Alliance (GCCA) as a potential source of funds for mainstreaming climate change considerations into sectoral development planning, budgeting, implementation and monitoring and/or improving knowledge about the effects of climate change, developed appropriate adaptation actions for the agriculture sector as this is a stated area of interest for the GCCA. Agri-TAF will also consult with the IFAD programmes to ascertain the potential for an ASAP supported intervention around one or more of the following areas: improved land management and gender-sensitive climate resilient agricultural practices and technologies; increased availability of water and efficiency of water use for smallholder agriculture production and processing; increased human capacity to manage short- and long-term climate risks and reduce losses from weather-related disasters; climate-resilient rural infrastructure; and communication knowledge on Climate Smart Smallholder Agriculture. Finally, Agri-TAF will support MINAGRI to develop a more coordinated approach to identifying and tracking climate finance opportunities that would enable it to assess funding availability and target its resource mobilisation efforts to tap in more effectively to international climate funds. This will involve providing periodic briefing updates on climate finance opportunities to the PS and DG Planning and involving the Climate and Environment Specialist in taking over this task. Scoping Report Resource Mobilisation for Environmental Mainstreaming 10

11 Report Proper 1 Introduction This report was commissioned by Agri-TAF to improve the team s understanding of the availability of and modalities of accessing external sources of finance for mainstreaming environment and climate change into agriculture development in Rwanda. It reviews the extent of existing investment in public sector expenditure on agriculture and explores the range of international climate funds that have emerged in recent years, highlighting the most appropriate funds in terms of fit with sector priorities, amount of funding available and accessibility. The findings are the result of a desk study conducted during September 2016 and provides an updated account of the information drawn from an earlier study prepared for FONERWA in 2015 based on the recent minutes from Board meetings of the various funds, the fund websites, and research and analysis posted on the Climate Funds Update website. 2 Current funding situation for the agriculture sector Rwanda was the first country to sign a Comprehensive Africa Agricultural Development Programme (CAADP) compact, committing itself to taking actions to generate sustained agricultural growth of 6% per year, including increasing the share of the state budget allocated to agriculture to 10% per year. Since signing the compact, the GOR has increased the budget dedicated to agriculture in order to attain this target (although this has been achieved by including the allocation to other Ministries as well as MINAGRI). The GoR recognises that public spending cannot cover the full delivery of the PSTA III as outlined in the ASIP II which includes an enhanced emphasis on inducing private sector investment into the sector. The total private sector cost envisaged for the implementation of Rwanda's 2nd Agriculture Sector Investment Plan is USD 543 million 1. However, private investment in agriculture is hampered by the shortage of land and the fragmented nature of land parcels in Rwanda as well as by a lack of financial services and products tailored to agri-business, a regulatory environment that can be over-burdensome for the private sector and a crowding out effect by public sector interventions. As a result, Rwanda continues to rely on significant levels of financial support from its development partners to support the delivery of PSTA III. With a number of major investment programmes drawing to a close, the Ministry is keen to identify and tap into new sources of financial support. The BTC investment in seed production and agricultural extension services as well as AfDB s Livestock Infrastructure Support Programme, both significant investments have come to an end. Table 1, below, shows the amount of funding provided by each of Rwanda s main development partners in the sector. Details of each investment are included in Annex 1. Table 1: Agriculture sector projects funded by development partners Development partner Projects Finance Timeframe Multilaterals IFAD Project for Rural Income through Exports (PRICE) US$ 37.4 million ASIP II Scoping Report Resource Mobilisation for Environmental Mainstreaming 11

12 Development partner Projects Finance Timeframe Climate-Resilient Post-Harvest and Agribusiness Support Project (PASP) US$ 33.9 million US$ 6.9 million) National Sericulture Centre (NSC) USD 4,301,190 (PRICE +) World Bank Third Phase of the Transformation of Agriculture Sector Program-for-Results (PforR) Project for Rwanda Rwanda Feeder Roads Development Project Third Rural Sector Support Project (RSSP3) Land Husbandry, Water Harvesting and Hillside Irrigation Landscape Approach to Forest Restoration and Conservation (LAFREC) USD 100 million US$ 49 million US$ million USD 35 million USD 9.53 million (from LDCF) Rwanda Pilot Program for Climate Resilience 2. USD1.5 million (from the CIF) pipeline EU Budget support 200 million AfDB Livestock Infrastructure Support Programme (LISP) million USD (budget support) FAO ASTF Rwanda project NEPAD Gender, Climate Change and Agriculture Support Programme (GCCASP) USD 11,891, Bilaterals DFID Programme of Support to Agriculture million Improving Market Systems for Agriculture in Rwanda (IMSAR) 6,850, BTC Support to SPAT II 18,000,000 July 2011 June 2016 USAID Rwanda Climate Services for Agriculture project Feed the future project USD million for preparation of a Strategic Program for Climate Resilience (SPCR) and associated investment plan Scoping Report Resource Mobilisation for Environmental Mainstreaming 12

13 Development partner Projects Finance Timeframe SIDA Considering supporting a capacity building programme Netherlands Developing a new concept Recent investments include 200 million in budget support from the EU (the largest investor in the sector and co-chair of the SWG) and large investments from the World Bank, DFID and USAID. This includes the USD100 million PforR project which is managed by the World Bank and through which DFID s million Programme of Support for Agriculture is channelled to support the implementation of the PSTA III. In addition, the GoR funds two large scale programmes, the one cow per family programme (GRINKA) and the Crop Intensification Programme (CIP). Going forward, there is a need to target further support for PSTA III and IV from Rwanda s development partners and other sources of finance including some of the international climate funds (see next section). In particular, cross cutting areas have been under-funded by the ASIP II and as a result have tended to be neglected in delivering the PSTA III. These are key areas where TA from Agri-TAF will be used to mobilise additional resources. 3 Rwanda s access to international climate funds 3.1 Rwanda s access to international climate funds International climate finance architecture is complex and evolving fast. There are a number of multilateral funds including the Climate Investment Funds that channel funding through multilateral agencies such as the UN agencies and AfDB as well as significant bilateral channels such as the UK International Climate Fund and Germany's International Climate Initiative. Within the climate finance landscape, funding is generally split between mitigation and adaptation although some of the larger funds finance both mitigation and adaptation programmes. For Rwanda s agriculture sector, both adaptation and mitigation finance are appropriate, available and accessible as agriculture is an important sector in terms of emissions (the agriculture sector is currently the largest emitting sector mainly due to emissions from cultivating soils) and due to the high dependence of most farmers on rain-fed agriculture which creates high vulnerabilities to changes in temperature and precipitation. As a Least Developed Country (LDC) and with its high vulnerability to climate change 3, Rwanda is eligible to receive funding from most of the climate funds especially those supporting adaptation which have a strong bias to disbursing to developing countries. Indeed, it has already had considerable success in accessing several of these funds. Moreover, MINIRENA has been accredited as a national entity by both the Green Climate Fund and the Adaptation Fund. These are two important sources of funding because both these funds offer a direct financing modality. This means that the funds do not have to be channelled through any intermediary agencies but can be disbursed directly through MINIRENA (the accredited entity) to any number of executing entities (e.g. MINAGRI, RAB, Districts etc.). It also means that the management fee, typically 10%, usually paid to the intermediary agency is incorporated into programme delivery and management and project start-up is generally quicker. Only a small number of funds offer direct finance to national entities which allows developing countries greater control and ownership over their climate change programming. It requires adherence to strict fiduciary standards that are internationally recognised including: financial integrity and management, institutional capacity, and transparency and self-investigative powers. Rwanda was the first African country to meet these standards and attain accreditation. 3 REMA (2015). Baseline climate change vulnerability index for Rwanda, May Scoping Report Resource Mobilisation for Environmental Mainstreaming 13

14 This first mover advantage resulted from Rwanda s advanced policy landscape around climate change and green growth and its commitment to tackling climate change as well as pro-active engagement with the funds by FONERWA which has enabled the GoR to access preparatory funding for a sizable investment (USD 65 million) from the GCF and secure USD10 million for a climate adaptation project in Nyabihu. As well as coordinating and leading the GCF accreditation process for target agencies, FONERWA is currently pursuing enhanced direct access (EDA) status. EDA allows for accredited institutions to receive an allocation of GCF finance and then make their own decisions on how to program resources. The EDA model differs from other arrangements, in which finance is only accessible through discrete projects and programs approved by the GCF board. This would enable the GoR to take forward the readiness programme and project pipeline that are currently under review by the fund. A key priority is to develop a set of action plans and a climate-finance ready pipeline of programmes. Agriculture is likely to feature prominently in these plans. In addition to the GCF and the AF which can be accessed through direct finance, Rwanda has been highly successful in accessing other international climate funds. The most significant of these is the Climate Investment Facility which has approved preparatory funding to develop two investment plans and a Strategic Plan for Climate Resilience through its climate funds: the Scaling-Up Renewable Energy Program for Low Income Countries (SREP), the Pilot Programme for Climate Resilience (PPCR) and the FIP (Forest Investment Programme). To date, however, MINAGRI s engagement with these investments and plans has been quite limited despite these investments including significant agricultural components. Given that the CIFs do not offer direct access, it will be important for MINAGRI to work closely with FONERWA in engaging effectively with the intermediary organisations, the World Bank and the AfDB, to ensure that the planned interventions align with national and sectoral priorities and are delivered in a timely fashion. Rwanda also has a good track record of securing funds from a number of other funds including: the Least Developed Countries Fund (LDCF), the Global Environment Facility (GEF), Adaptation for Smallholder Agriculture Programme (ASAP) and the EU funded Global Climate Change Alliance (GCCA). These investments have mostly focused on adaptation investments and all require intermediary organisations (usually the UN agencies) to broker, develop and implement projects. Some of them also require proposed projects to demonstrate additional cost reasoning, where grants can only be used for those costs that are additional to a development baseline and are the incremental cost of adaptation activities (e.g. LDCF, GEF and ASAP). This requires leveraging co-financing from development partners to pay for the business-as-usual or baseline part of the project. 3.2 Funds relevant to mainstreaming environment and climate change concerns into agricultural development in Rwanda The flow of climate funds in Rwanda is managed by FONERWA (the Fund for Environment and Climate Change of Rwanda), an affiliate agency of the MINIRENA and national basket fund for climate and environment. The fund is supported by DFID, KfW, CDKN and GGGI. Since 2013, it has funded 31 projects many of which have substantial agriculture components. However, MINAGRI and RAB have not featured significantly in the portfolio to date as most of the funding has been channelled through districts. However, MINAGRI recently secured financial support (USD 3 million) from FONERWA to pilot the mainstreaming of climate change into the tea and coffee sub-sectors, two key export crops which are highly sensitive to climate change. The project will develop an action plan, and deliver capacity building and low regret adaptation and mitigation interventions, addressing both current and longer-term climate threats. The design is being finalised by Agri-TAF and activities started in September Further to this, FONERWA recently issued a targeted call for mainstreaming proposals and is looking to support the mainstreaming of climate and environment considerations into key sectors, one of which is agriculture. DG Planning in MINAGRI has expressed an interest taking forward a mainstreaming proposal within the Livestock Intensification Programme (LIP). Agri-TAF is currently consulting with the LIP and providing TA to support the development of a concept (PPD) for submission to FONERWA in mid-october. As discussed above there are a multitude of international climate funds that support sustainable and climate smart agriculture. The multilateral funds which are most relevant to Rwanda s agriculture sector are listed below: Scoping Report Resource Mobilisation for Environmental Mainstreaming 14

15 Green Climate Fund (USD billion) Climate Investment Funds - Pilot Programme for Climate Resilience (USD 1.2 billion), - Forest Investment Program (USD 785 million) - Scaling-Up Renewable Energy Program for Low Income Countries (USD 796 million) Adaptation for Smallholder Agriculture Program (USD 300 million). GEF Trust Fund (GEF ) (USD 3 billion) Least Developed Countries Fund (USD million), Adaptation Fund (USD 642 million), Global Climate Change Alliance (USD million) Least Developed Countries Fund Special Climate Change Fund Details of the above climate funds, their relevance to Rwanda s agriculture sector and existing programmes supported provided by each fund are provided in Table 1. Of the funds listed above, Rwanda has accessed or is in the process of accessing finance from all of them except the Special Climate Change Fund. However, as there is no systematic tracking of project applications, climate expenditure and opportunities, it is difficult for the GoR to effectively coordinate its adaptation and mitigation plans and programmes with the added potential for duplicating interventions or creating programming gaps particularly in delivering the Green Growth Climate Resilient Strategy. Currently, the most relevant funds for Rwanda in terms of meeting the financing needs for future environment and climate change mainstreaming programmes are the Green Climate Fund and the CIFs. The largest source of climate finance is likely to be the USD billion Green Climate Fund which has attracted significant contributions and now that it is operational it is likely to supersede some of the existing funds which have sunset clauses that only allow them to operate until new climate finance mechanisms come into force. Unlike the CIF s, the GCF is also a direct finance fund and it therefore represents the most flexible and significant source of climate finance for Rwanda. So far, one full proposal (for an integrated climate change project in Gicumbi district) and has been submitted to the fund by the GoR and the fund has released USD 1.5 million for preparatory studies for the Gicumbi project design. In addition, Agri-TAF recently prepared a concept note proposing a USD 30 million mainstreaming project for MINAGRI (entitled Mainstreaming climate smart planning and implementation into agricultural development ) which has been submitted to the fund for review. This will most likely be developed into a full proposal during 2016/17. The Adaptation for Smallholder Agriculture Program (ASAP) is another potential source of climate adaptation finance. As the ASAP provides co-financing targeted specifically at scaling up and integrating climate change adaptation in smallholder development programmes, it would be important to identify a suitable baseline project with IFAD s existing country programmes. The funding priorities of ASAP, however, are strongly aligned with addressing the cross cutting issues identified by Agri-TAF including: 1. improved land management and gender-sensitive climate resilient agricultural practices and technologies; 2. increased availability of water and efficiency of water use for smallholder agriculture production and processing; 3. increased human capacity to manage short- and long-term climate risks and reduce losses from weatherrelated disasters; 4. climate-resilient rural infrastructure; and 5. communication knowledge on Climate Smart Smallholder Agriculture. The GEF Trust Fund is another potential source of significant funding (USD4.43 billion) for addressing environmental and climate change concerns (both mitigation and adaptation). The GEF is an international financial instrument that funds the additional costs incurred by developing countries in fulfilling multilateral environmental agreements that generate global benefits. The fund supports climate smart agriculture and many of the proposed interventions recommended by the EU funded 2011 Strategic Environmental Scoping Report Resource Mobilisation for Environmental Mainstreaming 15

16 Assessment and the GGCRS including: agro-ecological methods and approaches including conservation agriculture, agroforestry, etc.; integrated watershed management, integrated approaches to soil fertility and water management; and diversification of crops and livestock production systems through sustainable land management. The GEF Trust Fund applies additional cost reasoning so a baseline project would be needed to demonstrate that GEF funds would cover the additional and incremental costs associated with addressing land degradation and climate mitigation. Accessing funds requires working through one of GEF s 18 Partner Agencies 4 with the DG REMA who is the GEF focal point in Rwanda. Another potential source of funds for the sector is the EU s Global Climate Change Alliance (GCCA) as it is one of the largest climate initiatives in the world (capitalised with million) and Rwanda is eligible for GCCA+ funds. Accessing funding requires the participation in a climate vulnerability needs assessment which takes into account the proportion of that country s population deemed at risk from the effects of climate change. The assessment specifically considers the country s agricultural sector and estimates the country s adaptive capacity, using the United Nations Human Development Index as a source. Funds are then allocated to countries based on availability of resources and on population figures. Training and technical assistance services related to climate change are also available for government agencies of ACP countries, through the GCCA's Intra-ACP Programme. Rwanda has already accessed GCCA funding (USD 5.72 million) through budget support for the delivery of the land tenure reform process which was completed in However, at present, there are no national programmes active in Rwanda although the GCCA supports a two regional initiatives that include Rwanda. In terms of mitigating emissions from the agriculture sector, the NAMA facility could be a potential source of funds. NAMAs are seen as concrete measures to achieve the objectives of Nationally Determined Contributions (NDCs) that were adopted through the Paris Agreement at COP21 in December There would be strong eligibility because in Rwanda s Nationally Appropriate Mitigation Actions (NAMA), the agriculture sector was found to represent a high portion of national GHG emissions. Two NAMA scenarios have been proposed for the sector: livestock and fertiliser (see table below for details of proposed NAMA activities). A funding opportunity currently exists as there was a call for proposals in July which closes at the end of October and a 3-5 year project with a budget of 2-10 million would be feasible. The proposed project would need to include a mix of regulatory and financial interventions and MINAGRI could be the Implementing Partner (IPs) as the key national partners (e.g. a Ministry) for the implementation of the NSP as long as it has the required national mandate to implement and operate NAMAs. However, because NAMA Facility funding is not provided directly to partner government institutions such as ministries, an eligible NAMA Support Organisations (NSOs) endorsed by the national government would have to be identified as the contractual partner of the NAMA Facility and recipient of funding. Both national 5 and international 6 entities are eligible as NSOs. The application process is through submission of a short outline (which can be prepared by the Ministry as long as a co-applicant is included as the NSO) which, if approved is followed by a detailed preparation phase (where a grant is provided) over 6-18 months. Funds that have already been accessed by GoR or where Rwanda has reached its country cap for the present can be monitored in case these caps are removed or adjusted once these funds receive more contributions. In particular, this would include the Adaptation Fund (AF) which recently decided to retain the country cap for the time being but the board agreed this decision would be reviewed at a later date. Another fund to track is the Least Developed Countries Fund (LDCF) as it has been accessed in the past but fund levels are currently depleted so there are currently limited prospects for accessing this fund. 4 The most commonly used partner agencies used in Rwanda are UNDP, UNEP, World Bank and AfDB. 5 National entities can include: development banks, development funds, public utilities, public agencies, foundations, national non-governmental organisations (NGOs), etc. 6 International entities include: regional or international development banks, United Nations (UN) agencies, bilateral and multilateral development agencies, international non- governmental organisations (INGOs), international foundations, etc. Scoping Report Resource Mobilisation for Environmental Mainstreaming 16

17 Table 2: List of multilateral climate funds and their relevance to Rwanda Name fund of Green Climate Fund Details Relevance to mainstreaming in agriculture The USD billion GCF is a direct access fund through accredited national and sub-national implementing entities and intermediaries. Grants and concessional loans are available. It also includes a Private Sector Facility. Countries can access the GCF both through MDBs and UN agencies. Allocation will balance funding for mitigation and adaptation measures and 50% of the adaptation funding is ring-fenced for the most vulnerable countries (LDCs, SIDS and African States). The fund made its first round of approvals in The GCF provides up to USD 100 million for each project. REMA is the National Designated Authority (NDA) and the main point of contact for the Fund. MINIRENA has been approved as an accredited entity. FONERWA will also apply for accreditation. FONERWA has accessed readiness support to strengthen the institutional capacity for country coordination and multi-stakeholder consultation mechanisms as needed, as well as to prepare a country programme and project pipelines. Rwanda is also in the process of being considered for enhanced direct access (EDA) to the GCF. EDA allows for accredited institutions to receive an allocation of GCF finance and then make their own decisions on how to program resources. The EDA model differs from other arrangements, in which finance is only accessible through discrete projects and programs approved by As the largest climate fund in the world, the GCF is likely to be a significant source of funding that can be accessed by Rwanda. A mainstreaming project would fit well within the GCF s investment criteria. Strong alignment with the fund s investment criteria would be achieved if the proposed project: Contributed to increased climate-resilient sustainable development. Strengthened knowledge, collective learning processes, or institutions Was innovative, sustainable, mobilised other actors and was cost effective Maximised environmental, social, health and economic impacts and reduce gender inequality. Targeted vulnerable groups Demonstrated extensive stakeholder consultation Planned and ongoing projects GCF (under its PPF facility) has approved a USD 1.5 million disbursement for the preparation of detailed studies to support the design of a project in Gicumbi District. This includes an agricultural component to strengthen the resilience of tea production from the Mulindi plantation. More recently, two concepts (a green city pilot and an agriculture mainstreaming project) were recently submitted to the GCF. The mainstreaming concept was prepared by Agri-TAF and the initial feedback from the fund was positive. There is good potential for Rwanda to access significant levels of funding in grants and concessional loans for adaptation and mitigation programmes in both the private and public sector. Close liaison will be required with the key focal points for this fund FONERWA and MINIRENA. Scoping Report Resource Mobilisation for Environmental Mainstreaming 17

18 Name of fund Pilot Program for Climate Resilience Details Relevance to mainstreaming in agriculture the GCF board. One of the Climate Investment Funds (CIFs) established in 2008, administered by the World Bank, and operated in partnership with regional development banks. Currently, the largest adaptation fund in the world (USD 1.2 billion), the PPCR focuses on a smaller number of countries and transactions to maximize impact and possibility for replication. It is managed by the World Bank and active in 9 pilot countries and 2 regional programs, which includes 9 small island nations. As of end December 2015, donors had pledged a total of $1.2 billion for PPCR. The PPCR adopts the CIFs 'sunset clause' which enables closure of funds once a new financial architecture becomes effective under the UNFCCC regime. The objectives of the PPCR are to assist developing countries to integrate climate resilience into core development planning for transformation at scale. This could include mainstreaming climate resilience into sectoral and cross-sectoral investment, including urban development/ infrastructure, agriculture and food security, land and ecosystems, policy, institutions and policies building on the Rwanda Economic Development and Poverty Reduction Strategy, the Green Growth and Climate Resilience Strategy, and other existing efforts. Under the sunset clause the CIFs are due to close once a new climate finance The PPCR is designed to provide programmatic finance for climate resilient national development plans with four main objectives: 1. Pilot and demonstrate approaches for integration of climate risk and resilience into development policies and planning; 2. Strengthen capacities at the national levels to integrate climate resilience into development planning; 3. Scale-up and leverage climate resilient investment, building on other on-going initiatives; and 4. Enable learning-by-doing and sharing of lessons at country, regional and global levels. Both the PPCR and the FIP are relevant to mainstreaming in agriculture as the SPCR is likely to include a significant climate smart agriculture component and the FIP IP will cover agro-forestry. Important for MINAGRI and RAB to engage in the preparation of the SPCR. Agri-TAF can play a facilitating role in this respect with MINIRENA (leading the process) and FONERWA (the executing entity for the SPCR). Planned and ongoing projects FONERWA submitted an EOI in Feb 2015 that proposed to focus resilience investments around a broad IWRM theme, as well as climate information systems and disaster risk management. Rwanda s Expressions of Interest (EOI) to develop the Strategic Program for Climate Resilience (SPCR) for the PPCR and an Investment Plan (IP) for the FIP were both approved by the Climate Investment Fund (CIF) in March The approval triggered the release of US$1.5 million for Rwanda to prepare an SPCR. The grants are expected to be executed by the Government of Rwanda. A scoping mission took place in Nov As there are currently no PPCR resources to implement the SPCR, the Government is expected to seek financial resources for implementation from the Green Climate Fund and other available resources. To support this, the AfDB and World Bank intend to develop two project concept notes to be submitted to various donor sources for operational funding. MINIRENA will be the National Implementing Agency for both, the PPCR and FIP processes, and will coordinate these with the technical backstopping from the thematic working groups that already exist within the government. The process will be led by MINIRENA and will: i) engage the same consultants team, ii) involve common joint missions of the MDBs, and iii) both Scoping Report Resource Mobilisation for Environmental Mainstreaming 18

19 Name fund Forest Investment Program of Details Relevance to mainstreaming in agriculture architecture is effective under the United Nations Framework Convention on Climate Change (UNFCCC), through a mechanism such as the Green Climate Fund (GCF). One of the Climate Investment Funds (CIFs) established in 2009, administered by the World Bank, and operated in partnership with regional development banks. Focuses on mitigation REDD. As of end December 2015, donors had pledged a total of $775 million for FIP. The aim of the FIP is to support developing country efforts to reduce emissions from deforestation and forest degradation and promote sustainable forest management and enhancement of forest carbon stocks (REDD+). Activities supported by the FIP include: Investments that build institutional capacity, forest governance and information; Investments in forest mitigation efforts, including forest ecosystem services; and Investments outside the forest sector necessary to reduce the pressure on forests such as alternative livelihood and poverty reduction opportunities. Both the PPCR and the FIP are relevant to mainstreaming in agriculture as the SPCR is likely to include a significant climate smart agriculture component and the FIP IP will cover agro-forestry through the development of an agroforestry action plan, along with analyses of national forest policies and strategies, deforestation and forest degradation status, and potential mitigation and adaptation measures. Important for MINAGRI and RAB to engage in the preparation of the agro-forestry component of the FIP. Agri-TAF can play a facilitating role in this respect with MINIRENA (leading the process) and RNRA (the executing entity for the FIP). Planned and ongoing projects investment plans will be validated through the same consultation of stakeholders which will be financed by the PPCR resources. In addition, FONERWA and RNRA have been confirmed to be the Executing Agencies for the PPCR and IP, respectively, and preparation grants will be channeled through these agencies accordingly. The World Bank will be the lead for the SPCR preparation process. Rwanda s Expressions of Interest (EOI) to develop the Strategic Program for Climate Resilience (SPCR) for the PPCR and an Investment Plan (IP) for the FIP were both approved by the Climate Investment Fund (CIF) in March The approval triggered the release of US$250,000 to prepare the Investment Plan. The grants are expected to be executed by the Government of Rwanda. A scoping mission took place in Nov As there are currently no FIP resources to implement the investment plan, the Government is expected to seek financial resources for implementation from the Green Climate Fund and other available resources. To support this, the AfDB and World Bank intend to develop two project concept notes to be submitted to various donor sources for operational funding. MINIRENA will be the National Implementing Agency for both, the PPCR and FIP processes, and will coordinate these with the technical backstopping from the thematic working groups that already exist within the Scoping Report Resource Mobilisation for Environmental Mainstreaming 19

20 Name fund of Scaling-Up Renewable Energy Program for Low Income Countries (SREP) Details Relevance to mainstreaming in agriculture FIP investments also mainstream climate resilience considerations and contribute to multiple co-benefits such as biodiversity conservation, protection of the rights of indigenous peoples and local communities, and poverty reduction through rural livelihoods enhancements. Under the sunset clause the CIFs are due to close once a new climate finance architecture is effective under the United Nations Framework Convention on Climate Change (UNFCCC), through a mechanism such as the Green Climate Fund (GCF). One of the Climate Investment Funds (CIFs) established in 2009, administered by the World Bank, and operated in partnership with regional development banks focuses on mitigation. The SREP was established to scale up the deployment of renewable energy solutions in the world s poorest countries to increase energy access and economic opportunities. As of end December 2015, donors had pledged a total of $787 million for SREP. Under the sunset clause the CIFs are due to close once a new climate finance architecture is effective under the United Nations Framework Convention on Climate Change (UNFCCC), through a mechanism such as the Green Climate Fund (GCF). There are a number of implications and potential benefits from the SREP investment primarily through provision of solar power in rural areas that could be used for agroprocessing and irrigation and the possibility of using agricultural waste to generate power for mini-grids. Agri-TAF can liaise initially with FONERWA and then MININFRA (Robert Nyavumba, Energy Division Manager) to assess the potential for the agriculture sector to benefit from the investment. Planned and ongoing projects government. The process will be led by MINIRENA and will: i) engage the same consultants team, ii) involve common joint missions of the MDBs, and iii) both investment plans will be validated through the same consultation of stakeholders which will be financed by the PPCR resources. In addition, FONERWA and RNRA have been confirmed to be the Executing Agencies for the PPCR and IP, respectively, and preparation grants will be channeled through these agencies accordingly. The AfDB will lead the IP preparation process. Rwanda was recently selected as one of 14 new pilot countries to participate in the SREP. GoR is currently developing an Investment Plan to scale up renewable energy generation and facilitate the development of the country s sustainable energy agenda. SREP funding of $50 million (USD) will help develop financially sustainable long-term markets for the private sector provision of off-grid electricity services in the East African country. The plan is designed to help Rwanda deliver its target to connect 48% of the households to the grid and to offer 22% sustainable off-grid solutions, including solar home systems and mini-grid connections Scoping missions took place in June and December 2015 and up to USD 300,000 will be provided to develop a full investment plan with the MDB. The plan includes three main Scoping Report Resource Mobilisation for Environmental Mainstreaming 20

21 Name fund of Adaptation for Smallholder Agriculture Program Details Relevance to mainstreaming in agriculture Launched in 2012 by the International Fund for Agriculture and Development, the Adaptation for Smallholder Agriculture Programme (ASAP) channels climate adaptation finance to smallholder farmers so they can access the information, tools and technologies to build their resilience to climate change. The fund has so far disbursed more than USD 300 million and There is strong alignment of sector priorities with funding requirements. Proposed interventions should contribute to the fund s indicators: 1. number of poor smallholder household members whose climate resilience has been increased because of ASAP, disaggregated by sex, Planned and ongoing projects areas of support to be developed over the coming months: 1. Stand-alone solar PV systems: to build markets and private sector capabilities to develop stand-alone solar PV systems, raising solar PV product standards and promoting dissemination of systems that are certified to international quality standards. 2. Mini-grids: to finance mini-grid projects, and to demonstrate the benefits to local communities and the commercial and technical viability of business models to trigger further market growth. 3. Technical assistance/enabling environment: to address market barriers through market development including awareness campaigns, improving technical standards of equipment, addressing training and other technical capacity needs in the supply-chain, increasing institutional and regulatory capacity, and assisting local financial institutions in appraising renewable energy projects. Rwanda currently has one project supported by this fund: Post-harvest Agribusiness Support Project. ASAP provides USD 7million in co-financing to a USD3.9 million investment by IFAD. This project ends in Scoping Report Resource Mobilisation for Environmental Mainstreaming 21

22 Name fund of GEF Trust Fund - Climate Details Relevance to mainstreaming in agriculture aims to deliver USD 150 million per year. ASAP provides co-financing targeted specifically at scaling up and integrating climate change adaptation in smallholder development programmes. ASAP has 5 outcomes: 1. improved land management and gendersensitive climate resilient agricultural practices and technologies; 2. increased availability of water and efficiency of water use for smallholder agriculture production and processing; 3. increased human capacity to manage short- and long-term climate risks and reduce losses from weather-related disasters; 4. rural infrastructure made climateresilient; and 5. knowledge on Climate Smart Smallholder Agriculture documented and disseminated. IFAD s country programmes bid for funds on a case-by-case basis and lead on identification, development and implementation of ASAP co-financing. Projects are proposed via Regional Division Directors. Government counterparts including, where possible, gender experts and representatives of marginalised groups, are intended to be in the lead. Under the sixth replenishment ( ) 30 donor countries pledged USD4.43 billion over five focal areas. 2. size of the overall resulting investment, 3. project leverage ratio of ASAP versus non-asap financing, 4. tonnes of GHG emissions (CO2e) avoided and/or sequestered, 5. increase in number of non-invasive onfarm plant species per smallholder farm supported, 6. increase in hectares of land managed under climate-resilient practices, 7. percentage change in water use efficiency by men and women, 8. number of community groups including women s groups involved in ENRM and/or DRR formed or strengthened, 9. value of new or existing rural infrastructure made climate-resilient, and 10. number of international and country dialogues to which the project would make an active contribution. Two focal areas are relevant to agriculture: climate change mitigation (USD 1260 million); and land degradation (USD 431 Planned and ongoing projects There are currently 4 projects supported by the GEF Trust Fund in Rwanda. 1. Increasing the Capacity of Vulnerable Scoping Report Resource Mobilisation for Environmental Mainstreaming 22

23 Name fund of Change focal area (GEF 6) Details Relevance to mainstreaming in agriculture Accessing funds requires working through one of GEF s 18 Partner Agencies. The most commonly used partner agencies used in Rwanda are UNDP, UNEP, World Bank and AfDB. The Operational Focal Point must provide a written endorsement for all national projects. The Operational Focal Point also decides which Agency would be best suited to develop and implement the project idea. The DG REMA is currently the GEF focal point in Rwanda. The GEF provides financing to various types of projects ranging from several thousands to several million dollars from the GEF Trust Fund (GEFTF), Special Climate Change Fund (SCCF) and Least Developed Countries Fund (LDCF). There are four types of projects: full-sized projects, medium-sized projects, enabling activities and programmatic approaches, briefly described below. Full-sized Projects (FSPs) - More than US$2 million. Governments decide on the executing agency (e.g. civil society organizations, private sector companies, research institutions). The GEF Council approves FSP concepts, which are then fully developed over 18 months. Medium-sized Projects (MSPs) - Up to US$2 million. MSPs offer opportunities for a broad range of programming that is typically smaller in scale than full-sized projects. The approval process is simpler, allowing them to be designed and executed more quickly and million). Under climate change mitigation, Programme 4 supports climate smart agriculture. Under the land degradation focal area, there are a number of programmes that are relevant to agriculture. Interventions that would align well with funding priorities include: 1. Agro-ecological methods and approaches including conservation agriculture, agroforestry, etc.; 2. Strengthening community-based agricultural management; 3. Integrated watershed management, including wetlands; 4. Implementing integrated approaches to soil fertility and water management. 5. Agricultural land management systems that are resilient to climate shocks (drought, flood). 6. Improving management of impacts of climate change on agricultural lands (including water availability) to enhance agro-ecosystem resilience and manage risks. 7. Diversification of crops and livestock production systems through SLM. 8. Mitigating impacts of climate change on agricultural lands using SLM (e.g. water management practices) to enhance agro-ecosystem resilience and manage risks 9. Applying SLM strategies and other ecosystem-based climate adaptation Planned and ongoing projects Rwandan Communities to Adapt to Adverse Effects of Climate Change: Livelihood Diversification and Investment in Rural Infrastructures. Executing agency EWSA. USD 8.8 million (from LDCF). 2. Enabling Activities to Review and Update the National Implementation Plan for the Stockholm Convention on Persistent Organic Pollutants (POPs). Executing agency REMA. USD 180,000 (from GEF Trust Fund) 3. Building Resilience of Communities Living in Degraded Forests, Savannahs and Wetlands of Rwanda Through an Ecosystem Management Approach. Executing agencies - REMA, MINIRENA, MINAGRI. USD5.5 million (from LDCF) 4. Landscape Approach to Forest Restoration and Conservation (LAFREC). Executing agency REMA. USD 9.5 million (from Multi-Trust Fund) In addition, there are two pipeline projects awaiting approval: 1. Forest Landscape Restoration in the Mayaga Region. REMA, Gisagara, Ruhango, Nyanza and Kamonyi Districts. USD 6.3 million (from GEF Trust Fund). 2. Building the Capacity of Rwanda s Government to advance the National Adaptation Planning process. REMA. USD 6 million (from LDCF). Scoping Report Resource Mobilisation for Environmental Mainstreaming 23

24 Name fund of Details Relevance to mainstreaming in agriculture Planned and ongoing projects efficiently. Programmatic Approaches (PAs). Programs are a strategic combination of FSPs and MSPs with a common focus to build upon or complement one another. In this way, they can produce results not possible through a single project. Programs maximise the impact of GEF resources by securing a larger scale and sustained impact on the global environment. They do this by implementing medium- to long-term strategies for achieving specific global environmental objectives consistent with the national or regional strategies and plans of recipient countries. There are two types of programs that may be implemented under the programmatic approach modality: thematic programs and geographical programs (country or regional). strategies for drought mitigation in drylands. 10. Applying innovative financial and market instruments (e.g. carbon finance with public and private sector partners) to implement SLM practices that reduce GHG emissions and increase sequestration of carbon on smallholder farms. Global Climate Change Alliance The Global Climate Change Alliance (GCCA) is a European Union initiative that focuses on Least Developed Countries and Small Island Development States as well as African countries affected by drought, desertification and flooding. The Fund set up in 2007 was capitalised with million (USD million) between 2008 and 2014 making it one of the largest climate initiatives in the world. Funds are allocated based on population figures and on availability of funds. There are a number of funding modalities used by GCCA including: projects (77%), sector budget support (8%), general budget Two of the five priority areas are relevant to agriculture: mainstreaming climate change into poverty reduction and development strategies, adaptation, building on the National Adaptation Programmes of Action (NAPAs) and other national plans. Good alignment would be achieved if a proposed request for financial support would be used to: integrate climate change considerations into sectoral development planning, budgeting, implementation and In the past, Rwanda has accessed GCCA funding through budget support (USD 5.72 million) for the delivery of the land tenure reform process which was completed in There are currently no national programmes active in Rwanda. However, the GCCA supports a two regional initiatives that include Rwanda. 1. Programme on Climate Change Adaptation and Mitigation in the COMESA-EAC-SADC Region which seeks to build successful adaptation and mitigation actions with smallholder famers across Eastern and Southern Africa. Part of the support to Rwanda Scoping Report Resource Mobilisation for Environmental Mainstreaming 24

25 Name of fund NAMA Facility Details Relevance to mainstreaming in agriculture support (8%) and sector policy support programme (8%). Training and technical assistance services related to climate change are also available for government agencies of ACP countries, through the GCCA's Intra-ACP Programme. Typical amounts available range from 2-10 million. As an LDC, Rwanda is eligible for GCCA+ funds. To receive funds, a country must participate in a needs assessment to understand its vulnerability to climate change. This assessment will also take into account the proportion of that country s population deemed at risk from the effects of climate change. The assessment specifically considers the country s agricultural sector and estimates the country s adaptive capacity, using the United Nations Human Development Index as a source. Finally, each country is assessed on how engaged they are in the dialogue on climate change. Governments must also express an interest in receiving support from the GCCA+. Funds are then allocated to countries based on availability of resources and on population figures. The NAMA Facility is a multi-donor fund established by Germany (BMUB) and UK (BEIS) in 2013 joined by Denmark (EFKM, MFA) and the European Commission in 2015 as additional donors. It was established with the objective to provide financial support to developing countries and emerging economies that show leadership on tackling monitoring. improve knowledge about the effects of climate change, developed appropriate adaptation actions for the agriculture sector to reduce the vulnerability of the population to the impacts of climate change. There is also scope to access the GCCA s TA service for project identification or formulation, climate funding requirements and access to funds, capacity building, training and workshops, curriculum development, policy development, technical advice, and other activities related to climate change. There is good alignment of proposed NAMAs for the sector with the aims of this fund. A current funding opportunity exists a recent call was issued in July with a deadline of 31 Oct The proposed project would be between EUR 5-20m over 3-5 years and would need to include both regulatory and financial Planned and ongoing projects included support to design a climate smart agriculture Investment Framework (including climate proofing the National Agriculture Investment Plan). 2. GCCA Intra-ACP Climate for Development in Africa (ClimDev) Programme which has supported a climate observation network in Rwanda through the Enhancing National Climate Services (ENACTS) which is an integrated platform aimed at accelerating efforts to improve the availability, access and use of climate information at the national level in African countries. None so far. Scoping Report Resource Mobilisation for Environmental Mainstreaming 25

26 Name fund of Details Relevance to mainstreaming in agriculture Planned and ongoing projects climate change and want to implement transformational country-led NAMAs within the global mitigation architecture in the shortand mid- term. Its aim is to support developing countries and emerging economies in implementing ambitious actions to mitigate greenhouse gas emissions (Nationally Appropriate Mitigation Actions, NAMAs). NAMAs can function as an important vehicle to implement nationally determined contributions (NDCs) under the Paris Agreement. The total funding available through the NAMA Facility since its inception is EUR 262 m and in 3 Calls, 14 projects have been selected so far. BMUB and BEIS have committed up to EUR 60 m of additional funding. Calls are open and competitive. Projects must have an implementation period of 3-5 years and a budget of EUR 5-20m. The NAMA Facility emphasises a mix of different types of interventions - in particular regulatory and financial ones to trigger more climate-friendly behaviour and consumption and production methods in developing countries. Projects are implemented by NAMA Support Organisations (NSOs), qualified legal entities, endorsed by the national government to ensure the implementation. NAMA Facility funding is not provided directly to partner government institutions such as ministries, so NSOs are the contractual partners of the NAMA Facility interventions. Two potential areas of focus (that correspond closely with the proposed NAMA scenarios) are livestock and fertilisers. A NAMA livestock intervention would include a collective approach to small groups of farmers, building community husbandry centres to produce the cows provided to individual families in the Grinka and other livestock programs along with collecting manure from larger number of animals in community based programs (schools, collectives, communities) for biogas digesters. To improve the fertilizer sector, NAMA activities would include: Improved fertilizer management and application Establish cooperative lime grinding facilities to enhance soil absorption Reduce or eliminate vertical burning of lime for agriculture Improve irrigation Reduce erosion Increase renewable energy (solar water pumps, charging stations, lighting) Available community grinding operations moved to private sector Encourage more independent and small scale lime mining Promote village and regional distribution centre(s) development Scoping Report Resource Mobilisation for Environmental Mainstreaming 26

27 Name fund of Details Relevance to mainstreaming in agriculture Planned and ongoing projects and recipients of funding. Both national 7 and international 8 entities are eligible as NSOs. Implementing Partners (IPs) are the key national partners (e.g. a Ministry) for the implementation of the NSP. IPs are expected to have the required national mandate to implement and operate NAMAs and should be formally linked with the NSO. The application process is through submission of a short outline (which can be prepared by the Ministry as long as a coapplicant is included as the NSO) which, if approved is followed by a detailed preparation phase (where a grant is provided) over 6-18 months. Adaptation Fund Established in 2009 and financed through a 2% levy on the sale of emission credits from the Clean Development Mechanism of the Kyoto Protocol, the AF was established Parties to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the costs of adaptation in form of concrete adaptation projects and programmes. Operational since 2009, total revenue to the Fund was US$ million (as off the end of 2015), including US$ million from CER sales, US$ million from The fund currently applies a USD 10 million country funding cap due to a lack of funds. Therefore, Rwanda s accredited entity MINIRENA is not eligible to submit another proposal until this cap is lifted. However, funds can be accessed through regional projects implemented by Mutilateral Implementing Entities. Currently, there is limited scope to access the AF until the country cap is raised. So far, due to the country cap only one project has been funded through the NIE. This is a USD 10 million grant for: Increasing the adaptive capacity of natural systems and rural communities, living in exposed areas of North Western Rwanda, to climate change impacts. The project is currently under implementation by RNRA. A proposed regional US$ 5,000,000 project concept submitted by the United Nations Environment Programme has been approved by the AF Board: Adapting to Climate Change in Lake Victoria Basin (Burundi, 7 National entities can include: development banks, development funds, public utilities, public agencies, foundations, national non-governmental organisations (NGOs), etc. 8 International entities include: regional or international development banks, United Nations (UN) agencies, bilateral and multilateral development agencies, international non- governmental organisations (INGOs), international foundations, etc. Scoping Report Resource Mobilisation for Environmental Mainstreaming 27

28 Name fund of Details Relevance to mainstreaming in agriculture Planned and ongoing projects donations, and US$ 4.3 million from investment income generated by the trustee. Funds available for new project and programme approvals had amounted to US$ million at year-end Kenya, Rwanda, Tanzania, Uganda). A Project Formulation Grant of US$ 80,000 has been awarded for development of the full proposal. However, the low price of carbon and the lack of donations to the fund has limited its capitalisation. The AF is currently in discussion with the GCF on a proposal to identify opportunities for the GCF to cofinance projects and programmes with the Global Environment Facility, the Adaptation Fund or Multilateral Development Banks. The AF pioneered direct access to finance for developing countries through National Implementing Entities that are able to meet agreed fiduciary standards, as opposed to working through UN agencies or Multilateral Development Banks (MDBs) as multilateral implementing agencies. Managed by the GEF. MINIRENA is the accredited NDA for Rwanda. Least Developed Countries Fund Established in 2002 and managed by the GEF, the LDCF is one of the largest funds available for adaptation and has approved the largest volume of adaptation finance for Sub-Sahara Africa (around USD 1 billion). As of June 30, 2015, the total amount pledged was $934.7 million. Of this, payments amounting to $929.1 million have been received. However, the demand for LDCF resources considerably exceeds the funds available for new approvals. As at June 30, 2015, there were USD 10.5 million available LDCF funding could be used for adaptation activities in the agriculture sector. However, the lack of funds in the LDCF means that it has limited capacity at present to fund new projects. So far Rwanda has had 2 projects funded by the LDCF totalling USD 14.3 million. 1. Increasing the Capacity of Vulnerable Rwandan Communities to Adapt to Adverse Effects of Climate Change: Livelihood Diversification and Investment in Rural Infrastructures. The executing entity is EWSA and partner agency is AfDB. USD 8.8 million. Approved May Building Resilience of Communities Living in Degraded Forests, Savannahs Scoping Report Resource Mobilisation for Environmental Mainstreaming 28

29 Name fund of Special Climate Change Fund Details Relevance to mainstreaming in agriculture for new funding approvals. Each LDC can access up to $30 million from the LDCF in accordance with the principle of equitable access. To qualify for LDCF (and SCCF) funding, the proposals must demonstrate additional cost reasoning, that is the grants can only be used for those costs that are additional to a development baseline and are the incremental cost of adaptation activities. It relies on co-financing from development partners to pay for the business-as-usual part of the project. The funds can be accessed by submitting a standard 4 page Project Identification Form (PIF) through one of GEF agencies 9. In fact the GEF Agency prepares the PIF with the Operational Focal Points (OFP) 10. Established in 2002 and managed by the GEF, the SCCF supports national adaptation plan development and their implementation, although largely through smaller scale projects (with a country ceiling for funding of USD 20 million). As of June 30, 2015, the total amount pledged was $349.1 million. The SCCF has approved USD million since its inception across 90 countries. Net SCCF funding could be used for adaptation activities in the agriculture sector. However, the lack of funds in the SCCF means that it has limited capacity at present to fund new projects. Planned and ongoing projects and Wetlands of Rwanda Through an Ecosystem Management Approach. The executing entities are REMA, MINIRENA, MINAGRI and partner agency is UNEP. USD 5.5 million. Approved Nov In addition, one project awaits approval by the fund: 1. Building the Capacity of Rwanda s Government to advance the National Adaptation Planning process. The executing entity is REMA and partner agency is UNEP. USD 6 million. Received by GEF Secretariat 29 Sep So far Rwanda has not accessed the SCCF. There is limited potential to access funding as the fund capitalisation does not fully cover existing priority concepts received by the fund. 9 GEF develops its projects through ten Implementing Agencies: the UNDP, UNEP the World Bank, the AfDB, the ADB, the EBRD, the IAD, the IFAD, the FAO, and the UNIDO. 10 designated by each country to receive GEF funding, be responsible for operational aspects of GEF activities such as, endorsing project proposals to affirm that they are consistent with national plans and priorities and facilitating GEF coordination, integration, and consultation at the country level Scoping Report Resource Mobilisation for Environmental Mainstreaming 29

30 Name fund of Details Relevance to mainstreaming in agriculture Planned and ongoing projects funds available for amount to just $4.3 million. The World Bank is the Trustee and Administrating Unit of the SREP. The present Strategy encompasses adaptation programming under two windows; the SCCF Adaptation Program (SCCF-A), and the Program for Technology Transfer (SCCF-B). The SCCF is open to all vulnerable developing countries. Scoping Report Resource Mobilisation for Environmental Mainstreaming 30

31 Although most counties have opted to channel finance through the multilateral funds, there are a number of bilateral funds that are significant in terms of the funding available. These include: UK s International Climate Fund (GBP 3.87 billion or USD 6.02 billion), Germany s International Climate Initiative (USD 2.8 billion), and Norway's International Climate and Forest Initiative (NICFI) (has pledged up to USD$517 million per year). These are described in Table 2 below. Germany s International Climate Initiative (ICI) and the UK s International Climate Fund contribute significant sources of bilateral finance. Accessing ICI funds is contingent on receiving a formal request for proposals from the German Government representative (BMU) in country and the project must be integrated into the national strategy. Table 3: Name of fund Details Planned and ongoing projects Bilateral Funding UK's International Climate Fund Germany's International Climate Initiative Norway's International Climate and Forest Initiative Established by the UK Government in 2011, the GBP 3.87 billion ICF has channelled the majority of its funds through dedicated multilateral funds, particularly the CIFs, but is in the process of revising this strategy. Funds Adaptation, Mitigation - general, Mitigation REDD. ICF funds 33% of DFID s GBP 38 million POSA of which Agri-TAF is a part. Established by the German Government in 2008 the initiative has approved USD 1.1 billion for a total of 377 mitigation, adaptation, REDD+ projects. The initiative is innovatively funded partly through sale of national tradable emission certificates, providing finance that is largely additional to existing development finance commitments. Grants and loans are typically in the region of 2.5 million. Has approved a total of USD 305 million through bilateral channels up to Sizeable pledges have been made for REDD+ activities in Brazil, Indonesia, Tanzania, and Guyana. The majority of NICFI s activities are conducted through multilateral channels and bilateral initiatives including the FIP, UN REDD, Brazilian Amazon Fund, Congo Basin Forest Fund, Forest Carbon Partnership Facility and Forest Investment Program. NICFI activities are only conducted through bilateral channels in countries where multilateral initiatives and/or multi-donor Rwanda has already accessed significant support from this fund via DFID for the establishment and initial capitalisation. Further funding is dependent on ongoing discussions with DFID and the outcome of a DFID business case made to the fund. Rwanda received USD 0.37 million to Draft a National Climate Change and Low Carbon Development Strategy implemented through the World Bank. Rwanda has received two grants for around USD 2.5 million. Funding applications can only be made if requested by the BMUB. Funding modality suggests a low probability of interest in Rwanda by this fund. Scoping Report Resource Mobilisation for Environmental Mainstreaming 31

32 Name of fund Details Planned and ongoing projects cooperation already exist. This ensures that recipient countries possess the necessary capacity for the uptake of projects. However, exceptions are made for: Countries that have already made such extensive progress at the national level that performance-based support for the implementation of an established strategy can be immediately provided; and Countries with which Norway has long, broadbased experience of cooperation on natural resource management, and which have already started internationally supported REDD programmes. 4 Next steps Agri-TAF will facilitate closer linkages between FONERWA and MINAGRI and RAB to ensure that agriculture components of any proposed climate projects align closely with sector and national priorities. In particular, over the coming months there is a need for effective engagement with FONERWA and World Bank missions during the development phase of the SPCR, the Investment Plan and the two concept notes for the PPCR and FIP. Active engagement is also needed during the preparatory studies for the tea resilience component of the planned Gicumbi GCF investment and the potential development of a second full GCF proposal for mainstreaming. Key departments to involve are: DG Agriculture Development and DG Strategic Planning and Coordination. 1. Agri-TAF will facilitate closer engagement between MINAGRI and the DG REMA who serves as the GEF focal point and can support applications to a number of funds including the GEF Trust Fund and LDCF. The potential for accessing funds for a project to support the proposed interventions recommended by the EU funded 2011 Strategic Environmental Assessment and the GGCRS including: agro-ecological methods and approaches including conservation agriculture, agroforestry, etc.; integrated watershed management, integrated approaches to soil fertility and water management; and diversification of crops and livestock production systems through sustainable land management. 2. Agri-TAF will consult with FONERWA to explore the potential for submitting a proposal to the NAMA Facility. 3. Agri-TAF will consult with the EU delegation to determine the potential for accessing the EU s Global Climate Change Alliance (GCCA) as a potential source of funds for mainstreaming climate change considerations into sectoral development planning, budgeting, implementation and monitoring and/or improving knowledge about the effects of climate change, developed appropriate adaptation actions for the agriculture sector as this is a stated area of interest for the GCCA. 4. Agri-TAF will consult with the IFAD programmes to ascertain the potential for an ASAP supported intervention around one or more of the following areas: 5. improved land management and gender-sensitive climate resilient agricultural practices and technologies; a. increased availability of water and efficiency of water use for smallholder agriculture production and processing; b. increased human capacity to manage short- and long-term climate risks and reduce losses from weather-related disasters; c. climate-resilient rural infrastructure; and Scoping Report Resource Mobilisation for Environmental Mainstreaming 32

33 d. communication knowledge on Climate Smart Smallholder Agriculture. 6. Agri-TAF will consult with DG Planning to ascertain if there are any forthcoming investments from the sectors key development partners (World Bank, DFID, USAID, IFAD, BTC, AfDB) that have not been identified by the desk study. 7. Agri-TAF will support MINAGRI to develop a more coordinated approach to identifying and tracking climate finance opportunities that would enable it to assess funding availability and target its resource mobilisation efforts to tap in more effectively to international climate funds. This will involve providing periodic briefing updates on climate finance opportunities to the PS and DG Planning and involving the Climate and Environment Specialist in taking over this task. Scoping Report Resource Mobilisation for Environmental Mainstreaming 33

34 Annexes Annex 1 Development partners in Rwanda s agriculture sector 1 International Fund for Agricultural Development (IFAD) IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries and a long term development partner in Rwanda. Since 1981, IFAD has financed 14 rural development programmes and projects in Rwanda for a total amount of US$201.8 million. The financing provided by IFAD consists of concessional loans and full grant funding based on the Debt Sustainability Framework. IFAD-funded grants have financed the activities of two projects supporting post-conflict reconstruction efforts and refugee rehabilitation. There are currently two generations of IFAD-financed programmes and projects. The first, designed during the 1980s and 1990s, included integrated rural development programmes and projects. These programmes and projects aimed to develop the agricultural sector in specific parts of the country by identifying all related elements and linking them together. Projects of the second generation, in place since the mid-1990s, called for activities that have an impact beyond the local level. They focus on a single aspect of rural development, such as market access or agricultural production and its relation to government policy-setting or other national initiatives already in place, to favour their replication in the rural environment. IFAD's strategy in Rwanda is aligned with the government's Economic Development and Poverty Reduction Strategy II and Strategic Plan for the Transformation of Agriculture III, as well as the IFAD Strategic Framework for Its overall objective is to reduce poverty by empowering poor rural men and women to actively participate in transformation of the agriculture sector and rural development and by reducing their vulnerability to climate change. The COSOP's strategic objectives are to: 1. Sustainably increase agricultural productivity through management of the natural resource base and investments in physical and social capital including scaled-up agricultural intensification resulting in improved incomes and livelihood 2. Develop climate-resilient export value chains, post-harvesting processes and agribusiness to increase market outlets, add value to agricultural produce and generate employment in rural areas 3. Improve the nutritional status of poor rural people and vulnerable groups included in the process of economic transformation. There are two ongoing projects: 1. Project for Rural Income through Exports (PRICE) US$ 37.4 million (IFAD loan: US$ 18.7 million, DSF grant: US$ 18.7 million) 2. Climate-Resilient Post-Harvest and Agribusiness Support Project US$ 33.9 million (IFAD loan: US$ 13.5 million, DSF grant: US$ 13.5 million, IFAD ASAP: US$ 6.9 million) 1.1 Project for Rural Income through Exports (PRICE) US$ 37.4 million (IFAD loan: US$ 18.7 million, DSF grant: US$ 18.7 million, ASAP grant 7 million, GoR counterpart funds: US$12.35 million) The goal of PRICE is to improve farmer income through their integration into key export-driven agricultural value chains. The approach of PRICE is to: (i) support value chains to tackle key production, processing and Scoping Report Resource Mobilisation for Environmental Mainstreaming 34

35 marketing constraints; (ii) diversify value chains to secure broad-based growth and include non-traditional crops such as sericulture and horticulture that lends itself to cultivation by very small farmers; (iii) promote the sustainability of cooperatives as a means to generate economies of scale and increase farmer access to markets and support services; (iv) increase returns to farmers by providing technical assistance with production as well as capturing more valued added; (v) mainstream the project into government structures to build capacity and create a sustainable exit strategy. The project has national coverage and supports interventions in selected areas across the country along specific criteria developed for each value chain: Coffee: activities would support existing coffee plots and 3,100 ha of new plantations. Tea: activities to be organised around one existing and 5 greenfield sites, for which tenders for building private tea factories are to be launched soon. Sericulture: activities will focus on the 40 cooperatives already established by PDCRE in different agro-ecological zones across the country. Horticulture: activities would be developed by groups of investors teaming up with smallholder farmers to develop horticulture value chains. 1.2 National Sericultuture Centre (NSC) USD 4,301,190 PRICE + Timeline: 5 YEARS (PRICE) The objective of the NSC is to provide possible logistical and technical support to beneficiary farmers/cooperatives to optimise production and maximize profits with a major thrust on value addition initiatives for production of various silk products / handcrafts for local and foreign markets. The partners are the Sericulture Cooperatives, farmers, Unions, Individual Enterpreneurs, Rwanda Silk Farmers Federation (RSFF), Agro-Processing Industry Limited (API Ltd), UTEXRWA. The NSC is the technical institution implementing the silk development component activities supported by SPIU and Government. The centre s core mandate is to supply quality mulberry cuttings with facilitation from SPIU to the sericulture sub stations, cooperatives and household silk farmers; undertake silkworm egg production in order to ensure adequate supply to the cooperatives; organize sericulture training for both Technicians, Cooperative members and household silk farmers; and provides sufficient extension services to the cooperatives. NSC is also in the process of implementing an ambitious 5 year Strategic plan they developed for Ministry of Agriculture (MINAGRI) to establish 10,000 hectares of mulberry ( ). 1.3 Climate Resilient Post-Harvest and Agribusiness Support Project (PASP) US$ 33.9 million (IFAD loan: US$ 13.5 million, DSF grant: US$ 13.5 million, IFAD ASAP: US$ 6.9 million) The project aims to Increased smallholder and rural worker incomes (including women, youth and vulnerable groups) from CIP crop and dairy PHHS-related businesses. There are two components: 1. HUB capacity development programme and business coaching 2. Post-harvest climate resilient agri-business investment support PASP is strengthened through a grant from the Adaptation for Smallholder Agriculture Programme (ASAP), to enable the project to address climate-related post-harvest problems in the prioritized CIP crops and dairy. Based on a review of existing value chain studies and market information available on the CIP crops and dairy sector, MINAGRI has decided to initially focus PASP on maize, beans, cassava, Irish potato and dairy. The initial target for PASP national beneficiaries will be 32,400 rural households in 10 districts where the project will be intervening. These households will be members of approximately 200 HUBs. The North-west area includes the districts of Musanze, Nyabihu and Rubavu producing Irish potato, maize, beans and milk. The Scoping Report Resource Mobilisation for Environmental Mainstreaming 35

36 Eastern province area includes the districts of Gatsibo, Kayonza, Ngoma and Nyagatare producing maize (more than 90%), beans (94%) and cassava (50%), with also potential for dairy development. The Southern province area includes the districts of Muhunga, Kamonyi and Ruhango with predominantly two crops, with over 70% of households growing cassava, and more than 90% growing beans. To overcome the contains the youth face and ensure their opportunities to participate and benefit from PASP investments, the project will: (i) profile young people as part of the baseline analysis and identify those that are household heads in the Ubudehe categorization to have a better understanding of their poverty levels; (ii) prioritise young people for training related to the development of skills and capacities in off-farm income generation, including linkages to the HANGUMURIMO programme in MINICOM that took over the apprenticeship programme of PPPMER II for the establishment of training positions with cooperatives and cooperative-owned businesses; (iii) ensure that the poorer young households gain access to employment generated by project activities; and (iv) identify within cooperatives high potential youth with good literacy skills for leaders training. Linkages will be established with the USAID/EDC Youth Livelihoods Project and vocational technical schools to identify employment opportunities. Finally, opportunities for youth participation in simple mechanisation will be also explored. 1.4 Kirehe community-based Watershed management Project (KWAMP) USD 49.3 million This large scale investment has recently ended. The Kirehe community-based Watershed management Project (KWAMP) operates in Kirehe District since 2009 as an agricultural investment project implemented by MINAGRI, originally co-financed by IFAD, WFP, DED and the Government of Rwanda. It became effective on 30th April 2009, and was due for completion in June Its overall objective was to develop sustainable profitable small-scale commercial agriculture in Kirehe District. The total cost of the project was estimated at USD 49.3 million. As some financiers did not fulfil their commitment (WFP 8.13 million and DED million), the total project cost now stands at million. The current IFAD grant commitment amounts to USD million. It operated in 18 watersheds of Kirehe district and aimed at reaching direct and indirect beneficiaries. KWAMP supported investments were handed over to Kirehe District in April World Bank There are six active projects supported by the World Bank in Rwanda representing an investment of USD million: 1. Third Phase of the Transformation of Agriculture Sector Program-for-Results (PforR) Project for Rwanda - USD 100 million in IDA, Rwanda Feeder Roads Development Project - US$ 49 million, Third Rural Sector Support Project (RSSP3) - US$ million (IDA) Land Husbandry, Water Harvesting and Hillside Irrigation - USD 35 million, Landscape Approach to Forest Restoration and Conservation (LAFREC) - USD 9.53 million (from LDCF), Lake Victoria Environmental Management Project (LVEMP) is also relevant as it promotes IPM, FFS and watershed management - US$ 15 million IDA loan over 5 years In addition, there is one pipeline project: 1. Rwanda Pilot Program for Climate Resilience USD1.5 million (from the CIF) for preparation of a Strategic Program for Climate Resilience (SPCR) and associated investment plan. Scoping Report Resource Mobilisation for Environmental Mainstreaming 36

37 Details on each of these programmes are provided below. There is also a small project/study on livestock and climate change which is developing a climate tool for the livestock sector in Rwanda as well as support for CSA analysis and a possible manual for CSA and integration into policy. The Bank has also produced two recent reports that are relevant to environment and climate mainstreaming: WB/CGIAR/CIST CSA brief on Climate Smart Agriculture (2015) Environmental and Social Systems Assessment (ESSA) of the Program-for-Results programme (2014) Agriculture Public expenditure review including climate and environment 2.1 Third Phase of the Transformation of Agriculture Sector Programfor-Results (Pfor R) Project for Rwanda USD 100 million in IDA The objective of the PforR operation is to increase and intensify the productivity of the Rwandan agricultural and livestock sectors and expand the development of value chains. The operation supports the Government of Rwanda s strategic objectives of the Transformation of Agriculture Sector Program Phase 3 with aims to enhance food security and nutrition contributing to reduction in poverty and inclusive economic growth. The operation supports four broad program areas: (i) agriculture and animal resource intensification; (ii) research, technology transfer and professionalization of farmers; (iii) value chain development and private sector investment; and (iv) institutional development and agricultural cross-cutting issues. The PforR operation is designed as a programmatic results-based approach in the agriculture sector. The Program is based on well-functioning Government fiduciary systems and practices, including contract and financial management, governance and anti-corruption systems, social and environmental regulations and systems, and technical capacities as demonstrated over the last 13 years in implementing World Bank supported projects/programs in the sector. Additionally, MINAGRI has demonstrated strong monitoring and reporting against results/indicators in the Bank- financed operations. The PforR operation also is designed to reinforce and strengthen the Government's own systems for delivery of key agriculture services, while putting in place processes to expand the role of the private sector in service provision and production and agroprocessing investments. 2.2 Rwanda Feeder Roads Development Project US$ 49 million The Feeder Roads Development Program co-funded with USAID and the World Bank is a USD 49 million investment that will run to 2021 with the aim of enhancing all season road connectivity to agricultural market centres in four districts. The project includes an institutional development and project management component which provides technical assistance on environmental, social, technical and financial audit. The objective of the project is to enhance all season road connectivity to agricultural market centers in selected Districts. There are three components: 1. Rehabilitation, Upgrading and Maintenance of Selected Feeder Roads:(Cost $41.10 M) 2. Strategy Development for Rural Access and Transport Mobility Improvement and Support to Preparation of Follow-on Operations:(Cost $5.50 M) 3. Support to Project Management:(Cost $2.40 M) The project has prepared an Environmental and Social Management Framework. 2.3 Third Rural Sector Support Project (RSSP3) US$ million (IDA) Scoping Report Resource Mobilisation for Environmental Mainstreaming 37

38 The additional finance (USD 15.9 million) is intended to cover the costs associated with a scale-up of the impact and development effectiveness of the RSSP3 project by: (i) expanding marshland area developed for irrigation beyond the original project scope (i.e., on an additional 1,000 hectare (ha)); and (ii) developing 200 ha of sustainable hillside works to protect the irrigation infrastructure against erosion and run off. The AF helps finance the costs associated with a scale-up of the impact and development effectiveness of the RSSP3 project by: (i) expanding marshland area developed for irrigation beyond the original project scope (that is, on an additional 1,000 hectare (ha); and (ii) developing 200 ha of sustainable hillside works to protect the irrigation infrastructure against erosion and run off. The scale-up will thereby target some 1,500 additional beneficiaries in the rural areas around Kigali city. The AF capitalises on the achievements of the ongoing RSSP3 project and the first two phases of this program and the World Bank supported Land Husbandry, Water Harvesting, and Hillside Irrigation (LWH) Project in increasing sustainable agriculture production and commercialization. The AF, along with the LWH AF serve as a bridge for the preparation of a larger national scale-up operation in the sector within the International Development Association (IDA) 17 envelope. There are three components: 1. Infrastructure for Marshland, Hillside and Commodity Chain Development which aims to: (i) Expand irrigation in cultivated marshlands through rehabilitation and development; (ii) Promote sustainable land management practices on associated hillsides; and (iii) Improve economic infrastructure in support of commodity chain development. 2. Capacity for Marshland, Hillside and Commodity Chain Development. This component aims to provide multi-level capacity needed to maximize beneficiary gains from the infrastructure investments and to ensure the sustainability of project objectives beyond the life of the series through: (i) Capacity Building for Farmer Organizations and Cooperatives; (ii) Capacity Building for Improved Production Technologies; and (iii) Capacity Building for Value Chain Development. 3. Project Coordination and Implementation. This component aims to ensure that project activities are effectively managed within the SWAp structure for Ministerial implementation of programs and projects at MINAGRI. 2.4 Land Husbandry, Water Harvesting and Hillside Irrigation AF USD 35 million The Land Husbandry, Water Harvesting and Hillside Irrigation Project is part of the RSSP. The objective is to increase the productivity and commercialization of hillside agriculture in target areas in the country. The project uses a modified watershed approach to introduce sustainable land husbandry measures for hillside agriculture on selected sites, as well as developing hillside irrigation for sub-sections of each site. The Project operates in 101 watersheds and has three components: 1. Capacity Development and Institutional Strengthening for Hillside Intensification. This component aims to develop the capacity of individuals and institutions for improved hillside land husbandry, stronger agricultural value chains and expanded access to finance. 2. Infrastructure for Hillside Intensification. This component will provide the essential hardware for hillside intensification to accompany the capacity development and institutional strengthening activities of Component A. 3. Implementation through the Ministerial SWAp Structure. This component aims to ensure that Project activities are effectively managed within the new SWAp structure for Ministerial implementation of programs and projects at MINAGRI. The project has piloted best practice in sustainable land use using IWRM approaches in Nyanza, Karongi and Gatsibo. The Bank has provided additional credit to the project to finance the costs associated with a scale-up of the impact and development effectiveness of the project by (i) expanding land husbandry works beyond the Scoping Report Resource Mobilisation for Environmental Mainstreaming 38

39 original project scope (i.e., on an additional 7,000 hectare (ha) in the poorest regions of the country); and (ii) developing 500 ha of irrigation works to be carried out in selected priority areas and where feasibility studies have already been completed. The scale-up will thereby target some 15,000 additional beneficiary households in the country. 2.5 Landscape Approach to Forest Restoration and Conservation (LAFREC) USD 9.53 million The project development and the global environmental objective is to demonstrate landscape management for enhanced environmental services and climate resilience in one priority landscape. The funds are channelled through REMA-MINELA. There are two components: Forest-friendly and climate-resilient restoration of Gishwati-Mukura landscape (US$8.227 million) Research, monitoring and management (US$1.305 million) 2.6 Rwanda Pilot Program for Climate Resilience pipeline project USD1.5 million The grant is for the preparation of a Strategic Program for Climate Resilience (SPCR) and associated investment plan, and to establish an enabling environment that allows for the mainstreaming of climate resilience into development planning and implementation. The grant will provide Technical Assistance in three phases: 1. Identification of a programmatic approach towards mainstreaming climate resilience, and preparation of the SPCR and accompanying strategic investment plan. 2. Identification of appropriate funding sources and packaging of investments 3. Initial capacity building and climate information systems investments 2.7 Lake Victoria Environmental Management Project (LVEMP) USD 15 million IDA loan This is a five-year East African Community project under implementation in the five countries that share the Lake Victoria Basin: Burundi, Kenya, Rwanda, Tanzania and Uganda. It is funded through a US$ 15 million IDA loan from the World bank. There are four components: 1) strengthening institutional capacity for managing shared water and fisheries resources; 2) point source pollution control and prevention; 3) watershed management with two sub-components: (i) natural resource conservation and livelihoods improvement; and (ii) community capacity building and participation; and 4) project coordination and management. In the Goma area, around 100 ha of radical terracing have been completed and 70ha of land planted with trees. The project also disburses small grants through SACCO branches to cooperatives through its Community Driven Development (CDD) sub-project initiative. This approach enables local communities to access project funds for sustainable enterprise development. Under component 3 (watershed management), the work includes rehabilitation of riparian buffer zones, sustainable land management, IPM, Farmer Field Schools and watershed management, training and awareness building on the Environmental Organic Law. Under the third component, the project will establish biodiversity-rich ecosystems, reduce erosion and regulate water flow; as well as develop and promote alternative livelihoods based on the restored ecosystems. 3 European Union The EU has recently agreed to provide 200 million in budget support to Rwanda agriculture to invest in farm production, nutrition and jobs of which 20 million is for TA. The funds will be used to support the Scoping Report Resource Mobilisation for Environmental Mainstreaming 39

40 transformation under way in Rwandan agriculture specifically to support government programmes to improve nutrition among rural communities, expand the number of food-secure households, make farmers more efficient in cropping patterns and land use, and extend the irrigation network to cover more households. The EU grant will also help spread agro-forestry in hilly and terraced areas, target job opportunities among exportoriented agricultural producers and processors, and provide suitable loans to farmers and cooperatives. Support will also be provided to improve public financial management capacities in agriculture. In addition to this grant, the EU s GCCA also supports two regional projects that Rwanda is part of. The EU also funded the Strategic Environmental Assessment of the agriculture sector in African Development Bank (AfDB) 4.1 Livestock Infrastructure Support Programme (LISP) Million USD 4 Years, until 31 December 2015 A nationwide programme, LISP Works with Farmers cooperatives, Local and International NGO's. The goal of the Programme is to create an enabling environment that will stimulate the development of a modern livestock industry in Rwanda through value addition and access to markets in order to encourage diversification of the economy, sustain growth, create jobs and reduce poverty. Its operational objective is to build the necessary infrastructure and services (livestock markers, Milk Collection Centers, Feeder Roads and Slaughter facilities) that will contribute to the development of a sustainable and profitable livestock market as well as stimulate dairy production and overall improvement of the livestock industry in Rwanda. This is aimed at supporting the implementation of the Government development agenda of improving the livestock sub-sector and the livestock business environment for active private sector participation. The medium term objective of the LISP is to sustain the growth of the livestock sector by: (i) improving the marketing system in a sustainable manner through the provision of critical infrastructure; (ii) improving the business environment for active private sector participation; and, (iii) contributing to ensuring macroeconomic stability. The Livestock Infrastructure Support Programme (LISP) focuses on: 1. Rural infrastructure, especially: 1. water supply for livestock farmers; 2. feeder roads to improve access for livestock farms; 3. milk collection centers (MCCs) to increase the milk handling capacity and safety, improved marketing and slaughtering facilities for livestock. The food security enhancement activities under the programme: 1. support to One Cow per poor family and 2. up scaling of technologies and building capacity of cooperatives in order to raise the productivity of livestock farmers, and their competitiveness which would contribute significantly to the technological transformation of the dairy industry. 2. Capacity building of dairy farmers MCC cooperatives A capacity building program for dairy farmers around MCCs was already developed and adopted by all the dairy sector development partners including: HPI, SNV, Land O`Lakes (RDCP II), Send A Cow Rwanda, CHF and EADD. Farmer trainings courses are ongoing in collaboration with development partners and are focusing on many topics among them we have: Milk handling at farms, Milk handling at the MCC, Hygiene and sanitation at the MCC, Veterinary service provision, Artificial Insemination service provision, Cooperative and MCC management skills, Milk data collection and Recording skills, etc. Over 40 trainers of dairy farmers around MCCs have been trained and 10,746 farmers trained (41% of them are women). Scoping Report Resource Mobilisation for Environmental Mainstreaming 40

41 3. Livestock Watering System Development. After completion of the feasibility study plus the tendering process, the Livestock watering system (LWS) construction works started in February 2013 for a period of 18 Months for site 1 located in Nyagatare District. The total livestock farms area (acreage) to be covered is 6,467 ha; the total number of Farms that will benefit from phase one of this project is 967 farms and 839 of them have been already identified. These farms are located in following administrative Sectors: Tabagwe, Rwempasha; Musheri and a small part of Rwimiyaga. The network pipeline length to cover is 287 Kms. The construction works are on-going and the overall works progress reaches at 90%. 4. Contribution to Mukamira Dairy "Mukamira Dairy Ltd" is a Public Private Partnership (PPP) initiative created in 2010 by 12 local dairy farmers cooperatives and the Government of Rwanda and is implemented through the Ministry of Agriculture and Animal Resources (MINAGRI) by the Livestock Infrastructure Support Programme (LISP). The Government of Rwanda/MINAGRI as the main shareholder in the company is therefore the leading shareholder. After completion of the feasibility study and the tendering process, construction works started in July 2012 and are so far at 95% of progress on civil works. Overall progress estimated at 100% for the waste water treatment plant including 5 soak way pits and 1 hangar for which provisional reception is done: only testing once connected to the factory is still awaited. Works progress estimated at 98% for construction and supply of water tanks. AfDB also produced the following report: Towards Inclusive Green Growth in Rwanda: Costing of Investments in Agriculture and Natural Resources (Ntabana, 2014) 5 DFID 5.1 Programme of Support to Agriculture 38.25m The project will provide sustainable increases in agricultural productivity which benefit the poor. This will contribute to the impact of achieving sustainable economic growth and a reduction in poverty. This includes a provision of 34m over 4 years ( ) to support the implementation of the Government of Rwanda (GoR) agriculture strategy, through a World Bank Programme for Results (PforR). The PforR disburses funds against a set of agreed upon Disbursement Linked Indicators (DLI s). A separate MoU with GoR provides assurances that DFID funds are re-invested into particular priorities in the agriculture sector. 4m will support a Technical Assistance Fund (TAF) that will provide additional resources, analysis and expertise to ensure increases in agricultural productivity are sustainable and inclusive. The majority of the DFID funds ( 34m) will be allocated to the World Bank PforR. The PforR makes disbursements upon the achievement of pre-agreed strategic results in the GoR s latest Strategic Plan for the Transformation of Agriculture (PSTA III). Key activities to deliver results include: (i) agriculture and animal resource intensification; (ii) research, technology transfer and professionalization of farmers; (iii) value chain development and private sector development and; (iv) institutional development and support to agricultural cross-cutting issues. DFID funds that have been disbursed will be reinvested, by the GoR, into these budget lines. The 4m TAF will provide additional expertise, knowledge and evidence to help ensure increases in agricultural productivity are sustainable and benefit the rural poor. Activities will be designed during an inception phase but indicative focus areas for the programme include: research and evaluation to support programme implementation and generate improved evidence. capacity building targeting additional support on specific areas of interest to DFID that may affect achievement of the programme outcome. Scoping Report Resource Mobilisation for Environmental Mainstreaming 41

42 coordination that promotes synergies between PSTA III programmes and other relevant activities across programmes and sectors. 5.2 Improving Market Systems for Agriculture in Rwanda (IMSAR) 6,850, IMSAR will commercialise agriculture through improving the way agricultural market systems function. It will identify market failures and provide the necessary agricultural expertise and finance required to help address them. This will benefit the poor as producers, employees and consumers, and small and medium size business, resulting in increased sales among farmers and agro-enterprises, increase in the percentage of Rwandan agricultural produce that has value-added and an increase in export diversification. 5.3 FONERWA DFID provided seed funding to capitalise FONERWA and TA support to the Fund Management team for the first three years. 6 Belgian Development Agency (BTC) BTC is a major development partner for the agriculture sector but the current package of support is ending. 6.1 Support to SPAT II 18,000,000 EUR (BTC) and 620,000 EUR (Government of Rwanda) July 2011 June 2016 Market Oriented advisory services and quality seeds A nationwide project implemented through the Rwanda Agricultural Board (RAB), Centre for Communication and Information in Agriculture (CICA). The specific objectives are: 1. Improved access to advisory services for crops and livestock 2. Improved access and use of high quality planting materials of food crops for men and women Main activities include: Support RAB to implement The Rwanda Seed Initiative Seed policies Seed production Gene bank Rwanda Seed Enterprise Private sector development Quality control Support to The Rwanda Farmer Field School Initiative (a nationwide project implemented through the Rwanda Agricultural Board for all major crops) Support to CICA (a National extension Resource center for extension material development and mass coverage through radio messages) 7 USAID Agriculture falls under USAID'S Economic growth program which aims to: 1. Build a strong agricultural sector, and 2. Promote private sector competitiveness In 2015, USAID spent USD68.3 million supporting the agriculture sector in Rwanda. In 2016, USAID prepared a review of Climate Smart Agriculture and Sustainable Intensification in Rwanda. USAID also invested USD Scoping Report Resource Mobilisation for Environmental Mainstreaming 42

43 21.9 million in IWRM over five years from 2011 through the Rwanda Integrated Water Security Program (RIWSP) which promotes innovative technologies for water supply, sanitation, agriculture and community climate resilient water management in two target watersheds. 7.1 Rwanda Climate Services for Agriculture project The Rwanda Climate Services for Agriculture project, is planned to transform the country s rural farming communities and the national economy through improved climate risk management. The project will reconstruct Rwanda s incomplete meteorological data record using cutting-edge climate science, and develop climate information products and services based on the expressed needs of farmers and other end-users. It builds on on-going innovations made by the Enhancing National Climate Services initiative (ENACTS), which filled in a 15-year gap in Rwanda s historical meteorological records. The project aims to deliver four specific outcomes: 1. Climate services for farmers.farmers across Rwanda s 30 districts will have decision-relevant, operational climate information and advisory services, and be trained to use the information to better manage risk. 2. Climate services for government and institutions.agricultural and food security decision makers in the Ministry of Agriculture and other national and local government agencies and institutions will use climate information to respond more effectively to risks. 3. Climate information provision.meteo-rwanda will design, deliver, and incorporate user feedback into a growing suite of weather and climate information products and services tailored to the needs of decision makers. 4. Climate services governance.a national climate services governance process will oversee and foster sustained coproduction, assessment and improvement of climate services. The project is being implemented by the Rwanda Agriculture Board (RAB) and Meteo Rwanda, in collaboration with the CGIAR Research Program on Climate, Agriculture and Food Security (CCAFS), Columbia University s International Research Institute for Climate and Society (IRI), the International Center for Tropical Agriculture (CIAT), the World Agroforestry Centre (ICRAF), and the International Livestock Research Institute (ILRI). 7.2 Feed the future project USD30-35 million Feed the Future is a United States Government (USG) initiative that addresses global food insecurity by supporting agriculture sector growth and improving nutritional status in 19 focus countries. USAID are finalising a major $30 35 m climate smart agriculture 11 (CSA) programme, an activity of USAID s Feed the Future (FtF) Project, that will run over the next 5 years. This investment will combine CSA with nutrition and improved market access and has a strong gender focus to ensure that women have access to and control over agricultural resources. Most relevant to environmental mainstreaming is outcome 1 (increased sustainable agriculture productivity) which will involve training farmers on good agriculture practices, facilitating access to inputs, building resilience to climate change and improving natural resource management practices (soil, water). Gender, climate change and environmental resilience are cross cutting themes. Interventions will support an integrated landscape approach to agriculture productivity that follows the principles of sustainable land and water use, and contributes to improving the resilience of farming systems through improving water management and preventing soil erosion, while maximising the effectiveness of input use through integrated soil fertility. The activity will also promote integrated water management, a farming 11 Practices that can increase food production from existing farmland while minimizing the negative impacts on environment are referred to as climate smart agriculture (CSA) and/or sustainable intensification (SI). Scoping Report Resource Mobilisation for Environmental Mainstreaming 43

44 systems approach (integrated crop management), integration of livestock production and vegetable production all of which have been shown to have positive environmental, nutrition and climate resilience benefits. The activity is planned to start early 2017 and will target the Ministry of Agriculture and the Rwanda Agriculture Board for capacity-strengthening. The project will also work and build capacity at the district level and support RAB s agricultural extension system. Other key partners will include the Ministry of Local Government and the Rwanda Natural Resources Authority. The project will have a strong focus on community-based organisations, non-governmental organisations, and farmer cooperatives that will be key to ensure farmer ownership and sustainability of the investment. The main Feed the Future goal in Rwanda is to sustainably reduce poverty and hunger. Under this main goal are two First-Level Objectives: (1) Improved Nutritional Status, especially of women and children, and (2) Inclusive Agriculture Sector Growth. these First-Level Objectives have two corresponding strategic objectives: 1. Strengthened capacity for sustained and improved health outcomes; and 2. Expanded economic opportunities in rural areas.18 The impact that Feed the Future aims to achieve in Rwanda by 2015 are to: Assist more than700,000 vulnerable Rwandan women, children, and family members mostly smallholder farmers to escape hunger and poverty. Reach nearly 190,000 children, improving their nutrition to prevent stunting and child mortality. Leverage strategic policy engagement and institutional investments to improve income and nutritional status in significantly more rural households. To reduce hunger and poverty in Rwanda, Feed the Future is tackling major constraints to agriculture investment. This includes core investments committed to building market linkages, increasing agricultural productivity, and improving infrastructure and nutrition. Core investments are coupled with capacity building and strengthening the policy environment to facilitate the expansion of the private sector and its contribution to the overall growth of the Rwandan economy. Feed the Future supports bean, maize, and dairy value chains through investing in sustainable market linkages, infrastructure, and nutrition. Feed the Future also provides limited support to Rwanda s traditional high-value exports of coffee and pyrethrum. This investment combines CSA with nutrition and improved market access and has a strong gender focus to ensure that women have access to and control over agricultural resources. The intervention framework is shown in Annex 3. Most relevant to environmental mainstreaming is outcome 1 (increased sustainable agriculture productivity) which will involve training farmers on good agriculture practices, facilitating access to inputs, building resilience to climate change and improving natural resource management practices (soil, water). Gender, climate change and environmental resilience are cross cutting themes. Interventions will support an integrated landscape approach to agriculture productivity that follows the principles of sustainable land and water use, and contributes to improving the resilience of farming systems through improving water management and preventing soil erosion, while maximising the effectiveness of input use through integrated soil fertility. The activity will also promote integrated water management, a farming systems approach (integrated crop management), integration of livestock production and vegetable production all of which have been shown to have positive environmental, nutrition and climate resilience benefits. The main activities are planned to start early 2017 and will target the Ministry of Agriculture and the Rwanda Agriculture Board for capacity-strengthening. The project will also work and build capacity at the district level and support RAB s agricultural extension system. Other key partners will include the Ministry of Local Government and the Rwanda Natural Resources Authority. The project will have a strong focus on community-based organisations, non-governmental organisations, and farmer cooperatives that will be key to ensure farmer ownership and sustainability of the investment. Feed the Future also supports the following programs, partnerships and organisations in Rwanda. Africa Lead Scoping Report Resource Mobilisation for Environmental Mainstreaming 44

45 Borlaug Higher Education for Agricultural Research Development (BHEARD) Famine Early Warning System Network (FEWSNet) Feed the Future Innovation Lab for Collaborative Research on Horticulture Global Agriculture and Food Security Program HarvestPlus Iron-fortified Beans Activity Human and Institutional Capacity Development Project Integrated Improved Livelihood Program Land Husbandry, Hillside Irrigation and Water Harvesting Program 8 FAO Cooperation between Rwanda and FAO began in 1963, and an FAO country office opened in Since then, assistance has comprised an evolving range of interventions, including development projects and emergency response and rehabilitation. A more recent focus on improved policymaking is illustrated by FAO s support to the mainstreaming of value chain development in Rwanda s Strategic Plan for Agricultural Transformation. On the technical front, Rwanda was the first country to have embraced FAO s Sustainable Food and Agriculture (SFA) initiative. FAO assistance in Rwanda is shaped by the FAO Country Programming Framework (CPF), which centres on four priority areas: 1. Improvement of food security and nutrition among the Rwandan population 2. Agriculture and livestock productivity through sustainable use of natural resource management, adapted to climatic changes 3. Value chain development and private sector investment as a basis for boosting commercialized agricultural development 4. Institutional collaboration and knowledge sharing in addressing agricultural development, food security and poverty actions FAO and the Ministry of Agriculture are mainstreaming related interventions across the agriculture sector strategy and developing a nutrition action plan. Two joint projects to combat malnutrition among children were implemented by FAO with UNICEF, WFP and WHO in Nyamagabe and Rutsiro, which are two of the most affected districts. The FAO-led component aims at promoting local production and consumption of nutritious and safe food as well as helping the affected households build more resilient livelihoods. In the field, activities focus on the distribution of small livestock, the construction of kitchen gardens and the provision of agricultural inputs and tools. Farmer Field and Life Schools (FFLS), an important and successful component of FAO s activities in Rwanda, are stressing the benefits of producing bio- fortified crops as well as mushrooms. The sustainability of the project activities should be assured through capacity building, which also encourages households to assume ownership. About 649 households in Nyamagabe and households in Rutsiro benefited directly from this collaborative project. Project funded by the Swiss Development Cooperation (SDC) and the Netherlands. FAO has also been supporting value chain development for potato, maize, milk, passion fruit, cassava and pineapple, focusing on Burera, Gicumbi and Gisagara districts. Also in Gicumbi District, FAO focused efforts on improving farmers food and nutrition security and increasing cash income through the intensification, value addition and commercialization of agricultural and livestock products. A particular emphasis was placed on the milk value chain, from the dairy farmers to the milk collectors, processors and retailers. An upcoming project includes a three year project monitoring agriculture and food policies which will support 1 new post in the Planning Department. Scoping Report Resource Mobilisation for Environmental Mainstreaming 45

46 8.1 Africa Solidarity Trust Fund for Food Security The fund was launched in 2013 as a unique Africa-led initiative to improve agriculture and food security across the region. The Fund was officially launched in June 2013 during the 38th Session of the FAO Conference. The Trust Fund was developed for African governments and partners to commit resources for the implementation of national or regional food security initiatives. It will support activities aligned with the renewed strategic framework and priority programmes of FAO, to enhance governments and regional organizations capacities to: 1. contribute to eradicate hunger, food insecurity and malnutrition; 2. increase and improve provision of goods and services from agriculture, forestry and fisheries in a sustainable manner; 3. reduce rural poverty; 4. enable more inclusive and efficient agricultural and food systems at local, national and international levels; and 5. increase the resilience of livelihoods to threats and crises. The Fund is governed through the following two bodies: the Steering Committee (SC) and the Fund Assembly (FA), which decide on priorities and approve proposed activities. The implementation of activities is coordinated and directed by the Programme Management Unit (PMU), established by FAO for this purpose. The current volume of the Africa Solidarity Trust Fund is over USD 40 million. Five envisaged country programmes and action plans (Central African Republic, Ethiopia, Malawi, Mali, Niger) have been approved by the SC as catalysts to ongoing efforts to eradicate hunger, reduce malnutrition and poverty. ASTF supports one project in Rwanda ( ) which fights malnutrition and rural poverty, through increasing decent employment in the agricultural sector and improving the local poultry value chain. This three-year initiative will select rural youth and poor/vulnerable households mainly women headed families as direct beneficiaries. Poultry farming will offer them supplemental income in addition to improving family diets. Rwanda is part of the four recipient countries in Eastern Africa (Burundi, Kenya, Rwanda and Uganda) to benefit from the SFE managed ASTF project. 9 NEPAD 9.1 Gender, Climate Change and Agriculture Support Programme (GCCASP) USD 11,891, The goal of the Gender, Climate Change and Agriculture Support Programme (GCCASP) is to achieve an effective and more equitable participation of Rwandan women smallholder farmers, youth and other vulnerable groups in climate-smart agricultural practices. The purpose is to build skills that will enable these vulnerable groups of societies in Rwanda to derive more benefits from engaging in climate-smart agricultural practices and capacitate them to better cope with climate variability and climate change. The specific objectives are to: Strengthen mainstreaming of gender issues in sectoral policies for climate resilience. Mainstream gender issues into national policies and strategies. Capacity building of smallholders women farmers. Strengthen institutions to enhance participation of women in planning and decision making processes, and Improve access of women to livelihood assets, agricultural inputs, loans, climate smart technologies, market, and rural infrastructure and benefit from adopting best practices. Scoping Report Resource Mobilisation for Environmental Mainstreaming 46

47 One of the major aspects of the programme interventions is geared towards improving the policy and institutional capacity of the Ministry of Gender and Family Promotion to effectively discharge its responsibility of policy guidance, regulatory and monitoring and evaluation functions to ensure empowerment to address gaps in socio-cultural, economic and institutional factors that limit achievement of effective and more equitable participation of smallholder women farmers, through policy changes and resilient capacity building to adverse effects of climate changes. The removal of these obstacles will ease and improve the smallholder women farmers access to credit and grants, and subsequently to climate-smart agricultural technologies, capacity building opportunities, land rights, market and other production assets. Investing in climate smart agricultural technologies and best practices that are amenable to rural women and young people, is critical in order for them to harvest their potential to ensure household food security and accelerate agricultural growth and transformation of the rural economies. The specific components of the Programme are grouped under four main intervention areas or service lines: (i) closing institutional gaps; (ii) capacity building of smallholder women farmers; (iii) creation and strengthening of women platforms; and (iv) investments in up-scaling of innovative and successful practices. All in all the Rwanda GCCASP programme will support and strengthen the capacities of selected smallholder women farmer groups and other section of the society who are vulnerable to adverse effects of climate change and variability, in all 30 districts of the country. Eventually there will be 12,000 direct beneficiaries of the programme, with women smallholder farmers being the centre of focus. 10UNDP UNDP fund two projects through REMA that are relevant to environment mainstreaming in agriculture: 1. Poverty and Environment Initiative (PEI), and 2. Decentralisation and Environmental Management Project II (DEMP II) 10.1 Poverty and Environment Initiative (PEI) The Poverty and Environment Initiative (PEI) Rwanda programme focuses on enhancing the contribution of sound environmental management to poverty reduction, sustainable economic growth and the achievement of the MDGs. PEI Rwanda is jointly led by the Ministry of Environment Natural Resources (MINIRENA), the Rwanda Environment Management Authority (REMA), the Ministry of Finance and Economic Planning (MINECOFIN). Its overall goal is to contribute to poverty reduction and improved wellbeing of poor and vulnerable groups through mainstreaming poverty-environment linkages into national development processes. It operates in six selected line ministries (selected on the basis of expenditure) including MINAGRI and districts to mainstream environment in their sector policies, plans and strategies and to strengthen capacity for sustainable sector performance. Work includes increasing national budget allocations in support of pro- poor environmental outcomes and building the long-term capacity of the government to integrate poverty environment concerns into the design and implementation of development plans. Environmental mainstreaming work is carried out under three clusters: (i) central government, including MINAGRI; (ii) local government; and (iii) communities. At the central level, PEI developed checklists and guidelines for mainstreaming environment in budget agencies. These are now included in MINECOFIN s Budget Call Circulars. PEI also provides 1-week training to all Planning officers of budget agencies on these guidelines (convened by MINECOFIN). At the local level, PEI assisted with greening the district development plans (DDPs) in 2015 with FONERWA funding. At the community level, PEI piloted green villages i.e. settlements with green components including agricultural-related ones and RAB provided cows through the GRINKA programme. MINAGRI has a permanent seat on the PEI steering committee. PEI also established a thematic working group (the sub-sector on Environment and Climate Change which is coordinated by the Scoping Report Resource Mobilisation for Environmental Mainstreaming 47

48 Director of Planning and M&E from REMA) on environment within the agriculture sector working group that commissioned a Cost-benefit analysis of fertiliser use in agriculture 12 in recognition of the adverse effects of fertiliser use. PEI also organised a training of trainers on Integrated Pest Management (IPM) in May 2015 for the Chamber of Agriculture and Livestock in the Private Sector Federation. At present PEI have had no specific activities with NAEB Decentralisation and Environmental Management Project II (DEMP II) The Decentralisation and Environmental Management Project II (DEMP II) works on environmental issues at the district level. The project is in its second five-year phase and is intended to build on and scale up the successes of the first phase (2005-8). The overall objective of DEMP II is to integrate environment with development and promote sustainable livelihoods using decentralisation as a delivery mechanism. The project has 3 components: 1) enabling MINITERE to effectively implement environmental policies, and support the decentralisation and coordination of quality delivery of environmental services in the districts; 2) strengthening district capacity for environmental management to enable districts to integrate environmental issues into the development process, through the District Development Plans (DDPs) and the budget process; and 3) assisting in the implementation of environmental priorities identified in the DDPs by using innovative practices (e.g. improved cooking stoves, soil conservation technologies etc.), and building public-private-civil society sectors in integrating conservation and development, targeting communities in/ around protected areas where degradation threatens livelihoods sustainability. 12 the DG for Agriculture Development, Dr Charles Murekezi, leads on this Scoping Report Resource Mobilisation for Environmental Mainstreaming 48

49 Annex 2 International Climate Funds 1 Multilateral climate funds 1.1 Green Climate Fund Expected to become the primary channel through which international public climate finance will flow, the Green Climate Fund (GCF) is a direct access fund through accredited regional, national and sub-national implementing entities and intermediaries. Countries can also access the GCF through MDBs and UN agencies. To date, the fund has received USD billion in pledges. Allocation will balance funding for mitigation and adaptation measures and 50% of the adaptation funding is ring-fenced for the most vulnerable countries (LDCs, SIDS and African States). Grants and concessional loans are available but accredited intermediaries that fulfil specialised fiduciary standards have the option to pass on GCF funding as risk guarantees and equity investments in addition to grants and loans. A Private Sector Facility will also provide funding to private actors, and support activities that especially enable domestic private investment in low carbon and climate resilient approaches. The GCF is the first climate fund to have a gender mainstreaming approach in place. The GCF will fund mitigation and adaptation programmes. The focus areas for mitigation include: lowemission transport, low emission energy access and power generation at all scales; reduced emissions from buildings, cities, industries and appliances; and sustainable land and forest management (including REDD+ implementation) for mitigation. The core metric is that of greenhouse gas (GHG) emission reductions in tons of carbon dioxide equivalents. For adaptation focus areas include: increased resilience of health, food and water systems; infrastructure; ecosystems; and enhanced livelihoods of vulnerable people, communities and regions. The Board will make GCF investment decisions based on a set of 6 agreed investment criteria focusing on 1) impact (contribution to the GCF results areas); 2) paradigm shift potential; 3) sustainable development potential; 4) needs of the recipient countries and populations; 5) coherence with a country s existing policies or climate strategies; and 6) the effectiveness and efficiency of the proposed intervention, including its ability to leverage additional funding (in the case of mitigation). The initial call for proposals was planned to begin by mid- 2015, in order to achieve the goal of having a first round of approvals in REMA is the National Designated Authority (NDA) and the main point of contact for the Fund. MINIRENA is in the process of applying for accredited entity status. FONERWA will also apply for this. GoR is in the process of accessing readiness support to strengthen the institutional capacity for country coordination and multistakeholder consultation mechanisms as needed, as well as to prepare a country programme and project pipelines. The NDA will take the lead in deploying readiness and preparatory support funding, which is capped at USD 1 million per individual country per year. Rwanda is also applying for enhanced direct access which is being piloted to allow developing country-based accredited institutions to receive an allocation of GCF finance and then make their own decisions about how to programme resources. This will enable Rwanda s accredited agencies to have their own project pipeline, or climate related budget support arrangements. KfW has GCF accreditation and is another channel for potential GCF funds for mitigation and adaptation projects in Rwanda. Scoping Report Resource Mobilisation for Environmental Mainstreaming 49

50 Green Climate Fund High potential for Rwanda to access significant levels of funding in grants and concessional loans for adaptation and mitigation programmes in both the private and public sector. Important to complete the accreditation process for target agencies, to continue to pursue the enhanced direct access status, and take forward the readiness programme and project pipeline that are currently under review by the fund. 2 Climate Investment Funds Established in 2008, as one of the largest fast-tracked climate financing instruments in the world, the $8.1 billion CIF provides developing countries with grants, concessional loans, risk mitigation instruments, and equity that leverage significant financing from the private sector, MDBs and other sources. Five MDBs the African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB), and World Bank Group (WBG) implement CIF-funded projects and programs. There are 3 funds relevant to Rwanda. These all fall under the CIF s Strategic Climate fund: 1. Pilot Programme for Climate Resilience (PPCR) 2. Forest Investment Program (FIP) 3. Scaling Up Renewable Energy in Low Income Countries Program (SREP) 2.1 Pilot Programme for Climate Resilience Currently the largest operational adaptation fund in the world, the PPCR focuses on a small number of countries and transactions to maximize impact and possibility for replication. It is active in 9 pilot countries and 2 regional programs, which includes 9 small island nations. The PPCR is part of the World Bank s portfolio of Climate Investment Funds (CIFs), and has resources of US$ 1.2 billion and a further US$ 1155 million in pledges. The PPCR was established to pilot and demonstrate ways in which climate risk and resilience can be integrated into core development planning and implementation by providing incentives for scaled-up action and initiating transformational change. Currently, USD 1.1 billion is allocated for 75 projects and programs, expecting co-financing of $1.7 billion from other sources while USD 777 million (70% of PPCR allocations) is approved and under implementation for 44 projects with expected co-financing of $1.1 billion 13. The Pilot Programme for Climate Resilience (PPCR) was only intended to operate until 2012 although it continues to operate under a sunset clause which enables it to operate until new UNFCC architecture becomes available. The PPCR offers grants and concessional loans to finance adaptation activities in recipient countries but as with LDCF and SCCF only covers the additional costs necessary to make a project climate resilient. PPCR is therefore designed to integrate climate resilience into development plans and as such, projects are not intended to be free-standing but should be combined with MDB resources and/or other parallel co-financing measures, including government and/or private sector resources. Unlike the LDCF and SCCF, the fund is accessible to private as well as public entities. To extend the PPCR s reach beyond national and regional investment plans and stimulate more private sector participation, USD 75.4 million in concessional financing has been set aside for innovative private sector projects 14. The PPCR is expected to leverage USD 1.7 billion USD in co-financing Scoping Report Resource Mobilisation for Environmental Mainstreaming 50

51 The PPCR takes a programmatic approach to adaptation and resilience finance and works only with a small number of pilot countries. The African Development Bank is the regional implementing entity for these programmes. During the first phase, PPCR was active in 9 pilot countries and 2 regional programs. PPCR pilot programs are intended to be country led, build on NAPAs and other relevant country studies and strategies, and strategically align with the Adaptation Fund and other donor funded activities. The PPCR is designed to provide programmatic finance for climate resilient national development plans with four main objectives: 1. pilot and demonstrate approaches for integration of climate risk and resilience into development policies and planning; 2. strengthen capacities at the national levels to integrate climate resilience into development planning; 3. scale-up and leverage climate resilient investment, building on other on-going initiatives; and 4. enable learning-by-doing and sharing of lessons at country, regional and global levels. The PPCR recently issued a call for Expressions of Interest (EOI) for a second phase of pilot countries. Rwanda was one of six countries 15 that were selected for the second phase. Following an EOI from the GoR, Rwanda secured a USD 40 million investment from the PPCR to build resilience around water resources that are critical to Rwanda s long-term growth and development plans. Pilot Programme for Climate Resilience Rwanda has been selected as a pilot country and will develop a USD 40 million investment plan to build resilience around water resources that are critical to Rwanda s long-term growth and development plans. Important to engage effectively with the AfDB in developing the investment plan and maintain the private sector focus. 2.2 Forest Investment Program One of the Climate Investment Funds (CIFs) established in 2008, administered by the World Bank, and operated in partnership with regional development banks 16. The USD 785 million Forest Investment Program (FIP) supports developing countries efforts to reduce emissions from deforestation and forest degradation and promote sustainable forest management and enhancement of forest carbon stocks (REDD+). FIP pilot programs are intended to be country-led and country owned, by building on, enhancing and strengthening existing nationally prioritized REDD efforts, and respect national sovereignty. Funding is channelled through the multilateral development banks (MDBs) as grants and near-zero interest credits. FIP financing addresses: 1. promoting forest mitigation efforts, including protection of forest ecosystem services; 2. providing support outside the forest sector to reduce pressure on forests; 3. helping countries strengthen institutional capacity, forest governance, and forest-related knowledge; and 4. mainstreaming climate resilience considerations and contribute to biodiversity conservation, protection of the rights of indigenous peoples and local communities, and poverty reduction through rural livelihoods enhancements. The FIP invests in the on-the-ground action needed to advance REDD+ in FIP pilot countries. Described as the missing middle, FIP primarily focuses on REDD+ implementation activities (Phase 2), providing a crucial 15 Ethiopia, Gambia, Madagascar, Malawi, Rwanda and Uganda 16 The African Development Bank, the Asian Development Bank, the European Development Bank, and the Inter- American Development Bank are the implementing agencies for FIP investments. Scoping Report Resource Mobilisation for Environmental Mainstreaming 51

52 pull to incentivize REDD+ readiness activities (Phase 1) and exerting a push to develop needed capacity and experience for countries to progress to results-based payments (Phase 3). The FIP complements other REDD+ financing mechanisms, including Forest Carbon Partnership Facility (FCPF), Global Environment Facility (GEF), UN Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (UN-REDD Programme). To extend the FIP s reach beyond national investment plans and encourage more private sector participation, financing has also been set aside to be awarded on a competitive basis for private sector projects advancing the goals of the FIP within FIP pilot countries. In order to qualify for funding FIP Investment Strategies, Programs and Projects should deliver transformational change and go beyond business-as-usual, and are assessed according to: climate change mitigation potential; demonstration potential at scale; cost-effectiveness; implementation potential; integrating sustainable development (co-benefits); and safeguards. The FIP is currently active in 8 pilot countries 17 but recently issued a call for a second phase of pilot countries. Although Rwanda did not qualify, the FIP agreed to provide USD 2.25 million to Rwanda and eight other nonpilot countries for preparation of investment plans to enable it to access additional resources that may become available either through the FIP or other bilateral or multilateral sources, including the Green Climate Fund 18. Forest Investment Program Rwanda was not selected as a pilot country for the second phase but has qualified for a USD 2.25 million grant to prepare an investment plan to access additional resources that may become available at a later date. Important to engage effectively with the World Bank in developing the investment plan. 2.3 Scaling Up Renewable Energy in Low Income Countries Program The USD 796 million Scaling Up Renewable Energy in Low Income Countries Program (SREP) is a funding window of the USD 8.1 billion Climate Investment Funds. It was established to scale up the deployment of renewable energy solutions in the world s poorest countries to increase energy access and economic opportunities. Channelled through five multilateral development banks (MDBs), SREP financing aims to pilot and demonstrate the economic, social, and environmental viability of low carbon development pathways building off of national policies and existing energy initiatives. The SREP is subject to the CIF 'sunset clause' which enables closure of funds once a new financial architecture becomes effective under the UNFCCC regime. Until such time, donors and recipients operate under the existing framework. The SREP is designed to demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector in low-income countries. It aims to achieve five main objectives: 1. assist low income countries foster transformational change to low carbon pathways by exploiting renewable energy potential; 2. highlight economic, social and environmental co-benefits of renewable energy programs; 3. help scale up private sector investments to achieve SREP objectives; 17 Brazil, Burkina Faso, Democratic Republic of Congo, Ghana, Indonesia, Lao People s Democratic Republic, Mexico, and Peru 18 Scoping Report Resource Mobilisation for Environmental Mainstreaming 52

53 4. enable blended financing from multiple sources to enable scaling up of renewable energy programs; and 5. facilitate knowledge sharing and exchange of international experience and lessons. SREP has allocated USD 501 million to 44 projects and programs that expect USD 3.3 billion in co-financing and aim to support the installation of 840 MW in renewable energy capacity and improve energy access for 14 million people equal to the population of Senegal. To date, SREP USD 136 million (27% of allocations) is approved for 12 projects with expected co-financing of USD 1 billion. Technologies supported include solar, wind, bio-energy, geothermal, small hydro power, and cook stoves. Preference is given to projects with strong poverty alleviation benefits. Economic and/or social development and environmental benefits are key criteria for project selection. Eligible new renewable energy applications include: 1. grid and off-grid electricity applications including small hydro or biomass-based power, wind and solar powered systems, and geothermal; 2. financing available for renewable electricity generation and use, and for transmission and distribution grids; and 3. cooking and heating applications including sustainable community forests, improved cook stoves, geothermal heating, and biogas or other renewable-based fuels. The programme has recently expanded to include fourteen new countries 19 (selected in June 2014) including Rwanda. In Rwanda, SREP will support investments to scale-up renewable energy generation and facilitate the development of the country s sustainable energy agenda. Rwanda s engagement in SREP activities is expected to result in: development of a clean energy IP for the first five years that would help Rwanda to scale up RE and move towards low carbon development; improved investment climate for private sector participation in the renewable energy sector; and enhanced legal and regulatory frameworks in the renewable energy sector. During Phase 1 of the implementation of the SREP, the African Development Bank (AfDB) and the World Bank Group (WBG), including the International Finance Corporation (IFC), have been supporting the Government of Rwanda and other relevant stakeholders - United Nations Organizations, bilateral partners, private sector companies, non-governmental organizations and civil society organizations in developing the SREP IP. It was agreed that the World Bank would be the lead MDB and therefore coordinate the joint effort of the MDBs in the country. The finalisation and endorsement of the IP by the SREP Sub-Committee will mark the beginning of implementation (Phase 2). Since Rwanda was selected as a pilot country for the SREP, the Government has undertaken a number of preparatory activities with support from MDBs, including: (i) the completion of a Scoping Mission containing consultations with various national stakeholders; (ii) the request of USD 260,000 grant resources to support IP preparatory activities; and (iii) the appointment of an individual consultant to support the Rwanda Energy Group (REG) and technical team hosted in the Ministry of Infrastructure (MININFRA) with the preparation of the SREP IP. The SREP Focal Point in Rwanda is Mr. Marcel Gakuba, Head of Studies, Research, and Development in the Energy Development Corporation Ltd, Rwanda Energy Group20. The next steps are: 1. Rwanda will use the preparation grant to prepare the investment plan; 2. submit the plan to SREP-SC Investment Plan for endorsement; 3. develop investment and financing proposals; and 19 Bangladesh, Benin, Cambodia, Ghana, Haiti, Kiribati, Lesotho, Madagascar, Malawi, Nicaragua, Rwanda, Sierra Leone, and Zambia. 20 TERMS OF REFERENCE. Scaling-up Renewable Energy Program (SREP). Joint Mission June 23-26, 2015, Rwanda Scoping Report Resource Mobilisation for Environmental Mainstreaming 53

54 4. submit to SREP-SC for approval of financing21. Scaling Up Renewable Energy in Low Income Countries Program Rwanda was recently selected as a pilot country for the SREP and is in the process of developing an investment plan with the World Bank to scale-up renewable energy generation and facilitate the development of the country s sustainable energy agenda. 2.4 GEF Trust Fund - Climate Change focal area Established in 1994, the Global Environment Facility Trust Fund supports the implementation of multilateral environmental agreements, and serves as a financial mechanism of the UN Framework Convention on Climate Change. It is the longest standing dedicated public climate change fund. Climate Change is one of the six focal areas supported by the GEF Trust Fund. The GEF also administers several funds established under the UNFCCC including the Least Developed Countries Trust Fund (LDCF), the Special Climate Change Trust Fund (SCCF) and is interim secretariat for the Adaptation Fund. All GEF projects including LDCF and SCCF are subject to a flat 10% agency fee, which is paid on top of the project grant. This covers the services of the implementing agencies (UNDP, UNEP, IFAD, FAO, WB and others) in assisting the countries in preparing and implementing the project. The GEF aims to help developing countries and economies in transition to contribute to the overall objective of the United Nations Framework Convention on Climate Change (UNFCCC) to both mitigate and adapt to climate change, while enabling sustainable economic development. The GEF is intended to cover the incremental costs of a measure to address climate change relative to a business as usual base line. Activities supported include: Climate Change Mitigation: Reducing or avoiding greenhouse gas emissions in the areas of renewable energy; energy efficiency; sustainable transport; and management of land use, land-use change and forestry (LULUCF) Climate Change Adaptation: Supporting developing countries to become climate-resilient by promoting both immediate and longer-term adaptation measures in development policies, plans, programs, projects, and actions. All adaptation related work for the GEF cycle is financed through the LDCF and SCCF. The activities supported by GEF 5 are in accordance to its 6 strategic objectives to promote and support: demonstration, deployment, and transfer of innovative, low-carbon technologies. Projects are expected to achieve the following objectives: Market transformation for energy efficiency in the industrial and buildings sectors Investment in renewable energy technologies Energy-efficient, low-carbon transport and urban systems Conservation and enhancement of carbon stock through sustainable management of land use, landuse change, and forestry Enabling activities and capacity building The GEF Trust Fund is replenished every 4-years. The GEF Trust fund has received a total of $ billion during its five replenishments. Under GEF 4, Rwanda received a grant of USD 4.5 million for the Sustainable Energy Development Project (SEDP). Under the fifth replenishment ( ), 40 donor countries pledged USD 1.35 billion to the climate change focal area. GEF 5 has approved a total of USD 799 million for 232 projects. The sixth replenishment ( ) will allow GEF to make an estimated USD 3 billion available for climate change, with 30 donor countries pledging USD 4.43 billion over all focal areas Scoping Report Resource Mobilisation for Environmental Mainstreaming 54

55 There are five focal area strategies: (i) biodiversity (USD 1296 million); (ii) climate change mitigation (USD 1260 million); (iii) chemicals and waste (USD 554 million); (iv) international waters (USD 456 million); and (v) land degradation (USD 431 million). The most relevant areas for Rwanda s agriculture sector are climate change mitigation and land degradation. Within climate change mitigation, key mitigation efforts include low emission technologies and land use, landuse change and forestry (LULUCF) options. Programme 4 of this focal area promotes conservation and enhancement of carbon stocks in forest, and other land-use, and support climate smart agriculture. Within the land degradation focal area, there are a number of programmes that are relevant to agriculture. Programme 1 targets agro-ecological intensification which builds on planned or existing initiatives addressing improvements in genetic resources and use of inputs, institutional frameworks to strengthen capacity of smallholder farmers, and efficient marketing and extension programs. Areas supported under this programme include: 1. Agro-ecological methods and approaches including conservation agriculture, agroforestry, etc.; 2. Improving rangeland management and sustainable pastoralism, regulating livestock grazing pressure through sustainable intensification and rotational grazing systems, increasing diversity of animal and grass species, and managing fire disturbance; 3. Strengthening community-based agricultural management, including participatory decision-making by smallholder farmers and diversification of farms and practices at scale; 4. Integrated watershed management, including wetlands where SLM interventions can improve hydrological functions and services for agro-ecosystem productivity; 5. Implementing integrated approaches to soil fertility and water management. Programme 2 aims to increase the role of sustainable land management in agro-ecosystem resilience through Climate-Smart Agriculture. A number of areas are supported including: 1. Agricultural land management systems that are resilient to climate shocks (drought, flood). 2. Improving management of impacts of climate change on agricultural lands (including water availability) to enhance agro-ecosystem resilience and manage risks. 3. Diversification of crops and livestock production systems through SLM to enhance agro-ecosystem resilience and manage risks; e.g. Integration of tree- based practices into smallholder crop-livestock systems to increase resilience. 4. Mitigating impacts of climate change on agricultural lands using SLM (e.g. water management practices) to enhance agro-ecosystem resilience and manage risks. 5. Applying SLM strategies and other ecosystem-based climate adaptation strategies for drought mitigation in drylands. 6. Applying innovative financial and market instruments (e.g. carbon finance with public and private sector partners) to implement SLM practices that reduce GHG emissions and increase sequestration of carbon on smallholder farms. 7. Rangeland management and sustainable pastoralism, focusing on SLM options for climate change adaptation and grazing management to reduce GHG emissions. There are also relevant programmes on: Land Management and Restoration (Program 3); Scaling-up Sustainable Land Management through Landscape Approach (Program 4); and Mainstreaming SLM in Development (Program 5). A country is an eligible recipient of GEF grants if it is eligible to borrow from the World Bank or if it is an eligible recipient of UNDP technical assistance. Any eligible individual or group may propose a project that meets the following criteria: consistent with national priorities and programs in an eligible country, and endorsed by the government; Scoping Report Resource Mobilisation for Environmental Mainstreaming 55

56 addresses one or more GEF Focal Areas, improving the global environment or advance the prospect of reducing risks to it; consistent with the GEF operational strategy; seeks GEF financing only for the agreed-on incremental costs on measures to achieve global environmental benefits; and involves the public in project design and implementation. The GEF has 18 Partner Agencies. The Operational Focal Point22 decides which Agency would be best suited to develop and implement the project idea. The GEF provides funding through four modalities: full-sized projects, medium-sized projects, enabling activities and programmatic approaches. Each modality requires completion of a different template. GEF 6 has a suite of programmes that the agriculture sector could tap into including biodiversity, land degradation, sustainable forest management and trans-boundary Cooperation in International Waters. The DG REMA is currently the GEF focal point in Rwanda. The current portfolio of GEF 6 projects is shown in the table below. Table 4: Title Focal Areas Agencies Type GEF Grant USD Cofinancin g Status Forest Landscape Restoration in the Mayaga Region. REMA, Gisagara, Ruhango, Nyanza and Kamonyi Districts Biodiversity, Land Degradation, Climate Change, Multi Focal Area United Nations Developme nt Programme Full-size Project 6,213,538 GEF Trust Fund 25,777,500 Receive d by GEF Secretar iat 10 Feb 2016 Enabling Activities to Review and Update the National Implementation Plan for the Stockholm Convention on Persistent Organic Pollutants (POPs) Persistent Organic Pollutants United Nations Industrial Developme nt Organizatio n Enabling Activity 180,000 from GEF Trust Fund 190,000 Project Approve d 7 Mar 2013 REMA Landscape Approach to Forest Restoration and Conservation (LAFREC) REMA Biodiversity, Land Degradation, Climate Change, Multi Focal Area The Bank World Full-size Project 9,532,000 Multi trust fund 53,530,000 Project Approve d7 July The Operational Focal Point (OFP) coordinates all GEF-related activities within a country. In Rwanda the OFP is the DG REMA. The OFP reviews project ideas, checks against eligibility criteria and ensures that new project ideas will not duplicate an existing project. Before contacting the Operational Focal Point, we suggest that you review the eligibility criteria (below) and check the Country Profile. Scoping Report Resource Mobilisation for Environmental Mainstreaming 56

57 GEF Trust Fund Rwanda has a number of pipeline and ongoing projects supported by this fund. GEF 6 has funding through to 2018 at which stage an additional replenishment is expected for GEF 7. There is good alignment of sectoral priorities with the fund and significant levels of funding are available. There are a number of potential areas to focus that could be targeted to support climate smart agriculture, integrated soil fertility management, sustainable land management and mitigation of emissions from agriculture and livestock production systems. Agri-TAF can follow up with DG REMA to explore the potential for another GEF 6 project. 2.5 Least Developed Countries Fund The Least Developed Countries Fund (LDCF) was established under the United Nations Framework Convention on Climate Change (UNFCCC) at its seventh session in Marrakech, Morocco, in 2001 and operationalised in The LDCF focuses on the urgent and immediate adaptation needs of the 48 UNFCCC-accredited least developed countries. LDCF is one of the largest funds available for adaptation and has approved the largest volume of adaptation finance for Sub-Sahara Africa. As of June 30, 2015, the total amount pledged was $934.7 million. Of this, payments amounting to $929.1 million have been received. However, the demand for LDCF resources considerably exceeds the funds available for new approvals. As at June 30, 2015, there were USD 10.5 million available for new funding approvals. Each LDC can access up to $30 million from the LDCF in accordance with the principle of equitable access. LDCF funds are intended to be used on the most urgent adaptation needs articulated in each LDC s National Adaptation Programme of Action (NAPA). Alignment of proposed projects with NAPA priorities is therefore an important requisite for accessing funds. Funds to date have been used as fast finance for pilot projects (USD 1-5 million). However, LDCF (and SCCF) are currently trying to expand their scale and scope through a programmatic approach (i.e. moving away from a project by project approach) although this will only be possible if the volume of financing increases significantly. Agri-TAF therefore needs to track these developments and assess their implications for accessing the fund for future projects. To qualify for LDCF (and SCCF) funding, the proposals must demonstrate additional cost reasoning, that is the grants can only be used for those costs that are additional to a development baseline and are directed towards adaptation. Activities that would be implemented in the absence of climate change constitute a project baseline, (or business-as- usual). LDCF therefore only funds the incremental cost of adaptation activities, it relies on co-financing from development partners to pay for the business-as-usual part of the project. The altered plan of action required to implement adaptation measures needed to reduce vulnerability, build adaptive capacity, and an overall increase of resilience to climate change, comprises the LDCF (or SCCF) financed adaptation project or program. In cases where no baseline of activities can be identified, the LDCF will pay the full-costs of the adaptation project, provided that it targets an urgent and immediate need as defined in the NAPA. Proposals must also be cost-effective, sustainable and measures in place for risk mitigation. LDCF operates out of GEF facilities and uses its structures to assess, approve and evaluate projects. GEF provides a standard project cycle management fee (5%) to implementing agencies to manage GEF and LDCF project implementation. The funds can be accessed by public or civil society entities by submitting a standard 4 page Project Identification Form (PIF) through one of GEF agencies23. In fact the GEF Agency prepares the PIF with the 23 GEF develops its projects through ten Implementing Agencies: the UNDP, UNEP the World Bank, the AfDB, the ADB, the EBRD, the IAD, the IFAD, the FAO, and the UNIDO. Scoping Report Resource Mobilisation for Environmental Mainstreaming 57

58 Operational Focal Points (OFP) 24. The PIFs are then screened quite rapidly by the GEF Secretariat and if approved, passed onto the LDCF Council for final approval. A full proposal is then developed within 18 months with a Preparation Grant if required. The OFP endorses the proposal and facilitates consultations, execution and co-ordination of the projects. If the projects are less than US$ 2 million, a Full Proposal can be submitted directly to the GEF Secretariat and GEF CEO. So far Rwanda has had 2 projects funded by the LDCF totalling USD 14.3 million. 1. Increasing the Capacity of Vulnerable Rwandan Communities to Adapt to Adverse Effects of Climate Change: Livelihood Diversification and Investment in Rural Infrastructures. The executing entity is EWSA and partner agency is AfDB. USD 8.8 million. Approved May Building Resilience of Communities Living in Degraded Forests, Savannahs and Wetlands of Rwanda Through an Ecosystem Management Approach. The executing entities are REMA, MINIRENA, MINAGRI and partner agency is UNEP. USD 5.5 million. Approved Nov In addition, one project awaits approval by the fund: 1. Building the Capacity of Rwanda s Government to advance the National Adaptation Planning process. The executing entity is REMA and partner agency is UNEP. USD 6 million. Received by GEF Secretariat 29 Sep Least Developed Countries Fund Rwanda has already accessed this fund on a number of occasions and is currently implementing two projects. The limited availability of funds and high demand from LDCs trying to access the fund reduces the potential for exploiting these funds at this current time. However, it will be important to periodically check on the level of funds available and the status of the country cap on funding as the LDCF is a major source of adaptation finance. Important also to track developments on LDCF s plans to adopt a programmatic approach to funding Special Climate Change Fund The Special Climate Change Fund (SCCF) was established in 2001 and operationalised in Whereas LDCF provides financing for least developed countries only, the SCCF is accessible to all non-annex I countries that are parties to the United Nations Framework Convention on Climate Change (UNFCCC). As of June 30, 2015, the total amount pledged was $349.1 million. The SCCF has approved USD million since its inception across 90 countries. Net funds available for amount to just $4.3 million. As at September 26, 2014, ten GEF Agencies were involved in SCCF operations, with the World Bank holding the largest share of the portfolio at 32% of total funds approved, followed by UNDP at 25 per cent 25. The governing body of the SCCF is the LDCF/SCCF Council which meets two times a year. SCCF is designed to finance activities, programs and measures related to climate change in the areas of: a) adaptation, b) technology transfer, c) mitigation in selected sectors (energy, transport, industry, agriculture, forestry and waste management), and (d) economic diversification. Among these four categories, only the adaptation and technology transfer windows are currently active - adaptation has the top priority. Of the total resources approved, USD million were for 57 projects under the SCCF Adaptation Program (SCCF-A), while 11 projects had been approved under the SCCF Program for Technology Transfer (SCCF-B), with total grant resources amounting to USD million. 24 designated by each country to receive GEF funding, be responsible for operational aspects of GEF activities such as, endorsing project proposals to affirm that they are consistent with national plans and priorities and facilitating GEF coordination, integration, and consultation at the country level 25 17th LDCF/SCCF Council Meeting October 30, 2014, Washington, DC Scoping Report Resource Mobilisation for Environmental Mainstreaming 58

59 SCCF activities are based primarily on NAPAs (in least developed countries) or national communications 26. The SCCF priority funding areas are: water resource management; land management; agriculture; infrastructure development; and fragile ecosystems and integrated coastal zone management. SCCF requires that projects and programs should be: 1) country-driven, cost-effective and integrated into national sustainable development and poverty-reduction strategies; and, 2) take into account national communications or NAPAs and other relevant studies and information. Funding is available as grants to public and civil society entities. The SCCF follows a similar process to LDCF for funding projects including the requirement for additional cost reasoning. The process for applying for funding is to develop a concept for a project and request assistance from an Implementing Agency of the GEF and submit to the national GEF Operational Focal Point. Projects over USD 1 million are referred to as Full-sized Projects (FSP); those of USD 1 million or below are referred to as Medium-sized Projects (MSP.) MSPs follow a streamlined project cycle, compared to FSPs. For FSPs, submission to the GEF under the SCCF starts with a Project Identification Form (PIF), followed by a CEO Endorsement Form. MSPs may start with the CEO Endorsement Form. Once the GEF CEO Endorses the project, the funding is released to the Implementing Agency. The PIF is reviewed by the GEF Secretariat and then the Council. The full proposal is then developed over a period of up to 18 months. Special Climate Change Fund Rwanda has so far not managed to access this fund. The shortage of funding to finance existing pipeline concepts reduces the potential for exploiting these funds at this current time. Periodic checks on the level of funds available and the status of the country cap on funding could be made to monitor flows to the fund and identify potential opportunities Adaptation Fund The Adaptation Fund (AF) was established in 2009 by the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) and is mandated to provide grants for concrete adaptation projects and programmes in developing countries that are vulnerable to climate change and are Parties to the Kyoto Protocol. It has a total capitalisation of US$ million (as off the end of 2015), including US$ million from CER sales, US$ million from donations, and US$ 4.3 million from investment income generated by the trustee. Funds available for new project and programme approvals had amounted to US$ million at year-end The Adaptation Fund is unique from other funds in that it derives revenue from a 2% levy on the sale of emission credits (Certified Emission Reductions - CERs) from the Clean Development Mechanism as well as contributions from bilateral agencies and private donations. However, the collapse of carbon markets reflecting oversupply and weak demand 27 has diminished the finance available to the AF and the fund is now largely dependent on donations. AF also has a direct access modality enabling recipient countries to access financial resources directly from the fund, or assign a National Implementing Entity 28 of their choosing. Direct access is in contrast to indirect access, where funding is channelled through a third party implementing agency, usually a multilateral organization, selected by the fund administrators. This move was intended to secure greater national ownership over funded activities, whilst maintaining high fiduciary standards and minimising transaction costs. 26 reports by non-annex I countries summarizing a country's mitigation and transfer; energy, transport, industry, agriculture, forestry and waste adaptation needs 27 Over the past year, the price of Certified Emission Reductions has fallen from per ton of CO2-equivalent emissions to less than 1.00 per ton 28 All implementing entities (both NIEs and multilateral implementing entities, MIEs) that seek AF accreditation must demonstrate they meet certain fiduciary standards to ensure that funds are used effectively and transparently for the purposes assigned by the Adaptation Fund. Scoping Report Resource Mobilisation for Environmental Mainstreaming 59

60 Where countries do not have an AF accredited National Implementing Entity, they can access funds through a Multilateral Implementing Entity (MIE). However, the fund has limited the amount of finance channelled through MIEs. The fund recently launched a pilot programme on regional projects, not to exceed USD 30 million, to enable greater partnerships among RIEs, MIEs, NIEs, and other national institutions, including engaging other bodies under the Convention 29. Financing is provided on a full adaptation cost basis to address the adverse effects of climate change. AF finances projects/programmes whose principal and explicit aim is to adapt and increase climate resilience. Projects/programmes have to be concrete with visible and tangible impacts and must include a knowledge component. There is no requirement for co-financing and the fund is open to all developing countries that are parties to the Kyoto Protocol are eligible. There is currently a cap of US$ 10 million per country. In 2015, the AF launched its Pilot Programme for Regional Activities which will entail one or more regional project/programme of up to USD 30 million. The programme is open to Regional Implementing Entities and Multi-lateral Implementing Entities, partnering with National Implementing Entities. The fund is open to grant applications from public, private and civil society entities. The process entails the submission of a Project Concept through the NIE or MIE which, if approved is converted into a Full Proposal for review by the AF Secretariat and final approval by the AF Board. Smaller projects (US$ <1 million) can submit a Full Proposal without a Project Concept. The project is then implemented by an executing entity which is distinct from the NIE which oversees the development and approval of projects and monitors their results. Civil society and local community organizations as well as private sector and public entities can serve as executing entities for adaptation projects. MINIRENA is the accredited NDA and has received a USD 10 million grant for one project so far: Increasing the adaptive capacity of natural systems and rural communities, living in exposed areas of North Western Rwanda, to climate change impacts. The project is currently under implementation by RNRA. Currently, the AF applies a funding cap of USD 10 million to each country so until this is raised, there is limited scope to access funds from the AF although funds can be accessed through regional projects implemented by Mutilateral Implementing Entities. Adaptation Fund Rwanda has reached the current country cap of USD 10 million imposed due to funding constraints. Periodic checks on the level of funds available and the status of the country cap on funding should be made to ensure the GoR can capitalise on any change in the country cap Global Climate Change Alliance The Global Climate Change Alliance (GCCA) is a European Union initiative that focuses on Least Developed Countries and Small Island Development States as well as African countries affected by drought, desertification and flooding. The Fund set up in 2007, attracted increasing contributions million (USD million) between 2008 and 2014 making it one of the largest climate initiatives in the world 30. The funding originates from the EU budget, the 10th European Development Fund (EDF) and contributions from Ireland, Sweden, Estonia, Cyprus and the Czech Republic. The GCCA works through the European Commission s established channels for cooperation at national and international level. The GCCA supports 51 programmes in 38 countries and 8 regions and sub-regions across the globe, and more programmes are in preparation. To date, 234 million has been committed to support national programmes. The GCCA supports the mainstreaming of climate change into national development planning in two thirds of these countries. The five GCCA priority areas include: 29 ADAPTATION FUND BOARD Twenty-fourth Meeting Bonn, Germany 9-10 October Scoping Report Resource Mobilisation for Environmental Mainstreaming 60

61 mainstreaming climate change into poverty reduction and development strategies, adaptation, building on the National Adaptation Programmes of Action (NAPAs) and other national plans, disaster risk reduction (DRR), reducing emissions from deforestation and forest degradation (REDD), and enhancing participation in the Global Carbon Market and Clean Development Mechanism (CDM). The first two priority areas are the most relevant for agriculture. Under mainstreaming climate change, the GCCA supports the systematic integration of climate change considerations into national development planning, from policymaking and budgeting to implementation and monitoring. This focuses on institutional strengthening and is often combined with another priority, in particular adaptation. Under adaptation, the GCCA aims to help improve knowledge about the effects of climate change and the design and implementation of appropriate adaptation actions, in particular in the water and agriculture sectors, that reduce the vulnerability of the population to the impacts of climate change. The GCCA builds on National Adaptation Programmes of Action (NAPAs) and other national plans. As well as supporting individual countries, the GCCA is active at the regional level, supporting programmes that tackle climate change issues that cross the borders of individual countries. To date, 60.8 million has been committed to support regional programmes 31. GCCA has supported the development of adaptation plans in vulnerable countries, and is financing pilot adaptation projects in the water and agricultural sectors and on sustainable natural resource management. To be eligible for GCCA funds, a country has to be among the 73 LDCs or SIDS recipients of aid. The fund applies additional criteria to prioritise countries for support. These include vulnerability to climate change, importance of agriculture, an assessment of the country s adaptive capacity, level of engagement on climate change and level of interest in receiving GCCA support. The fund is open to Government and civil society organisations and funds are accessed by sending an Expression of Interest to the EU Delegation in country. Funds are allocated based on population figures and on availability of funds. There are a number of funding modalities used by GCCA including: projects (77%), sector budget support (8%), general budget support (8%) and sector policy support programme (8%). In addition, training and technical assistance services related to climate change are available for government agencies of ACP countries, through the GCCA's Intra-ACP Programme. Funding is released solely through grants. This programme provides technical support to a variety of existing initiatives related to adaptation and mitigation to climate change. There are two types of support: 1) Training Workshops and 2) Short-Term Technical Assistance. The programme provides support by contracting one or more experts to complete a proposed task. Direct financial support is not included only the TA. The technical support must contribute to one or more of the 5 GCCA+ Priority Areas above. The TA can be used to carry out feasibility studies, project identification or formulation, climate funding requirements and access to funds, capacity building, training and workshops, curriculum development, policy development, technical advice, and other activities related to climate change. Additional information and an application form can be obtained by contacting the following gccaintraacp@acp.int. In the past, Rwanda has accessed GCCA funding through budget support (USD 5.72 million) for the delivery of the land tenure reform process which was completed in There are currently no national programmes active in Rwanda. However, the GCCA supports a number of regional initiatives that include Rwanda. This includes the Programme on Climate Change Adaptation and Mitigation in the COMESA-EAC-SADC Region which seeks to build successful adaptation and mitigation actions across Eastern and Southern Africa. The programme works with three Regional Economic Communities and targets smallholder famers. Interventions include scaling-up and mainstreaming climate-smart agriculture and sustainable land management practices. The GCCA was the first funder of the programme, contributing 4 million Euros from 31 Scoping Report Resource Mobilisation for Environmental Mainstreaming 61

62 2010 to 2014, and the programme received approximately 50 million Euros from Norway and the United Kingdom that will continue operations into Part of the support to Rwanda included support to design a climate smart agriculture Investment Framework (including climate proofing the National Agriculture Investment Plan). Another regional programme is the GCCA Intra-ACP Climate for Development in Africa (ClimDev) Programme which is intended to respond to climate change and variability challenges for Africa's development, with a focus on climate sensitive sectors (i.e. agriculture, food security, water resources, energy and health). The ClimDev programme has also supported a climate observation network in Rwanda through the Enhancing National Climate Services (ENACTS) which is an integrated platform aimed at accelerating efforts to improve the availability, access and use of climate information at the national level in African countries. Global Climate Change Alliance Rwanda has already accessed this fund for budget support and it is possible that further funding may be available given the resources committed. There is good alignment of funding priorities with sectoral and national priorities and potential to access funding for climate mainstreaming and adaptation. The Ministry could make an approach to the EU delegation in Kigali to explore the potential of accessing further funds particularly under the 4 funding modalities (projects, sector budget support, general budget support and sector policy support programme) Adaptation for Smallholder Agriculture Program Launched in 2012 by the International Fund for Agriculture and Development, the Adaptation for Smallholder Agriculture Programme (ASAP) channels climate finance to smallholder farmers so they can access the information tools and technologies that help build their resilience to climate change. ASAP is the largest global financing source dedicated to supporting the adaptation of poor smallholder farmers to climate change. The programme is working in more than thirty developing countries, using climate finance to make rural development programmes more climate-resilient. Financed by IFAD and the governments of Belgium, Canada, Finland, Netherlands, Norway, Sweden, Switzerland and United Kingdom, the fund has so far disbursed more than USD 300 million channelled to at least eight million smallholder farmers. Examples of ASAP-supported initiatives on its website include: mixed crop and livestock systems which integrate the use of drought-tolerant crops and manure, which can help increase agricultural productivity while at the same time diversifying risks across different products; systems of crop rotation which consider both food and fodder crops, which can reduce exposure to climate threats while also improving family nutrition; and a combination of agroforestry systems and communal ponds, which can improve the quality of soils, increase the availability of water during dry periods, and provide additional income. ASAP has 5 outcomes: 1. improved land management and gender-sensitive climate resilient agricultural practices and technologies; 2. increased availability of water and efficiency of water use for smallholder agriculture production and processing; 3. increased human capacity to manage short- and long-term climate risks and reduce losses from weatherrelated disasters; 4. rural infrastructure made climate-resilient; and 5. knowledge on Climate Smart Smallholder Agriculture documented and disseminated. With an envisaged delivery of USD 150 million per year, ASAP supports efforts through NAPAs, PPCRs and other national and international policy efforts, to deliver supportive, concrete investment outcomes for smallholders at scale. Developing countries members are able to access ASAP s co-financing targeted Scoping Report Resource Mobilisation for Environmental Mainstreaming 62

63 specifically at scaling up and integrating climate change adaptation in smallholder development programmes. IFAD s country programmes bid for funds on a case-by-case basis and lead on identification, development and implementation of ASAP co-financing. Projects are proposed via Regional Division Directors. Government counterparts including, where possible, gender experts and representatives of marginalised groups, are intended to be in the lead. The key selection criteria are i) the additionality of the ASAP funding to the project that it is co-financing (for example, whether the grant will provide genuine added value to a project and is not simply displacing other forms of public or private finance/activities); and ii) whether the ASAP-supported project is given strong support from the beneficiary Government, the relevant IFAD Regional Division country team and communities of smallholders including women and marginalized groups. In addition, potential project contributions towards the ten key indicators of ASAP Results Framework are taken into account: 1. number of poor smallholder household members whose climate resilience has been increased because of ASAP, disaggregated by sex, 2. size of the overall resulting investment, 3. project leverage ratio of ASAP versus non-asap financing, 4. tonnes of GHG emissions (CO2e) avoided and/or sequestered, 5. increase in number of non-invasive on-farm plant species per smallholder farm supported, 6. increase in hectares of land managed under climate-resilient practices, 7. percentage change in water use efficiency by men and women, 8. number of community groups including women s groups involved in ENRM and/or DRR formed or strengthened, 9. value of new or existing rural infrastructure made climate-resilient, and 10. number of international and country dialogues to which the project would make an active contribution. Grants size typically range from USD 3 million to 15 million depending on the overall size of the co-financed operation and the nature of the project. ASAP is providing an additional US$7 million to an existing IFAD project in Rwanda (US$ 33.9 million), the Climate Resilient Post-Harvest and Agribusiness Support Project. The goal of this five- year project ( ) is to alleviate poverty, increase the incomes of smallholders and rural labourers including women, youth and vulnerable groups and contribute to overall economic development in Rwanda. The project will demonstrate pro-poor and climate-resilient approaches to post-harvest activities undertaken amidst increasing climatic uncertainty. The target group comprises poor smallholder farmers engaged in production or processing of specific priority crops and dairy products. This group includes poor farmers with some production potential, members of cooperatives who own small land plots, and smallholders who supplement their income through agricultural wage work. Project components include the following: 1. Capacity development and business coaching for cooperatives, farmers' organizations and small and micro-enterprises involved in delivering produce to market 2. Support for agribusiness investment in climate-resilient drying, processing, value addition, storage, logistics, distribution and other post-harvest activities that reduce product losses and increase incomes. Scoping Report Resource Mobilisation for Environmental Mainstreaming 63

64 Adaptation for Smallholder Agriculture Program Rwanda has already accessed this fund for one project but it is possible that further funding may be available to co-finance a large scale investment. Agri-TAF can consult with colleagues in MINAGRI and further advice of funding availability for new projects can be sought from the IFAD country office in Kigali. 2.6 Bilateral climate funds UK s International Climate Fund The UK established its cross-departmental International Climate Fund in 2011 as the primary channel of UK climate change finance. The ICF is capitalised with GBP 3.87 billion and is designed to help developing countries adapt to climate change, embark on low carbon growth and tackle deforestation between April 2011 and March The ICF is managed by a high level cross-departmental project team with representation from the Department for International Development (DFID), the Department of Energy and Climate Change (DECC), the Finance Ministry (Her Majesty s Treasury), the Department for Environment, Food and Rural Affairs (DEFRA), and the Foreign and Commonwealth Office (FCO). The UK committed to provide USD 5.95 billion for international climate scaling up UK climate finance and has channelled the majority of its currently deposited USD 1.32 billion through dedicated multilateral funds, particularly the CIFs, but is in the process of revising this strategy. The fund has an approximate thematic split of its spend: 50% for adaptation; 30% for low carbon development, and 20% for forestry. So far the fund has approved USD 573 million for projects. Although the fund offers bilateral support to individual countries, the majority of its finance has been channelled through other dedicated climate funds including the PPCR the LDCF and the Adaptation Fund. The ICF's funding portfolio is split between capital contributions/concessional loans and grant finance. The majority of contributions to multilateral funds (CIFs, etc.) are in the form of concessional capital. Grants are used primarily as a mechanism for bilateral contributions. The ICF is designed to be responsive to country needs and well integrated into countries own sustainable development plans and strategies. The ICF aims to drive urgent action to tackle climate change by supporting low carbon growth and adaptation in developing countries. Specifically, the ICF has three objectives: 1. to demonstrate that low-carbon, climate resilient growth is not only feasible, but desirable; 2. to support international climate change negotiations; and 3. to recognise that climate change offers new opportunities for private sector partnerships, innovation, and sustainable development. These priorities have thematic foci on adaptation, low-carbon development, and forestry projects. Activities supported by the ICF include: building global knowledge and evidence; developing and scaling-up low-carbon and climate resilient programs; building capacity in the public and private sectors and supporting country level action; and mainstreaming climate change into UK development aid. The ICF also supports strategic initiatives such as the Climate Public Private Partnership (CP3) which is aimed at tipping the balance for private investors and catalysing climate finance flows to developing countries. The CP3 programme aims to demonstrate to major private sector investors that climate friendly investments are financially viable. As part of this, the UK is investing GBP 110 million (US$ 171 million) in two 32 to-2015-government-policy-climate-change-international-action#appendix-8-international-climate-fund-icf Scoping Report Resource Mobilisation for Environmental Mainstreaming 64

65 new private equity funds that will invest in sectors including water resource management in developing countries with the aim of leveraging private co-investment. CP3 also provides technical assistance to support the development of the project pipeline and facilitate pioneering projects. There is no direct route through which an organisation outside of the UK Government can independently develop a project to be considered for ICF funding. Proposals come forward through DFID country offices or central departments as well as from DECC and Defra. Often the delivery partners of individual projects include the private sector, civil society organisations and academic institutions but the proposal has to be sponsored and managed by one of the three UK Government Departments. If approved, DFID (or FCO) develop a concept note and then a business case in partnership with the host Government and/or other multilateral agencies that might be interested in co-financing for approval by the ICF Board. The International Climate Fund (ICF) of the UK government is currently considering new delivery options for the disbursal of its resources. Options includes using the UK Green Investment Bank, the Private Infrastructure Development Group (PIDG) and CDC1 as potential delivery vehicles for some of its resources 33. The GoR received USD 0.37 million to Draft a National Climate Change and Low Carbon Development Strategy implemented through the World Bank and GBP 22 million to capitalise and provide TA for FONERWA. UK s International Climate Fund Rwanda has already accessed significant support from this fund via DFID for the establishment and initial capitalisation. Further funding is dependent on ongoing discussions with DFID and the outcome of a DFID business case made to the fund B2. Germany s International Climate Initiative The International Climate Initiative (ICI) was launched by the German Government in 2008 to provide grants and loans to finance climate projects in developing and newly industrialised countries, as well as countries in transition economies. The ICI operates through GIZ and promotes climate-friendly economies, measures for climate change adaptation and for the preservation or sustainable use of carbon reservoirs/reducing Emissions from Deforestation and Forest Degradation (REDD). The fund receives 120 million (US$ 155 million) per year from the German Government. Since the IKI was launched in 2008 until the end of 2014, BMUB has initiated 446 projects with 1.6 billion in funding. The fund is open to Governments, NGOs, multilaterals, research institutes and the private sector. Most of the projects are regional or global with many countries participating. For single country projects the funds allocated tend to range from 2-6 million. The initiative is innovatively funded partly through sale of national tradable emission certificates, providing finance that is largely additional to existing development finance commitments. Additional capital contributed by the agencies implementing the projects and funding from other public and private-sector sources bring the total volume disbursed for ICI projects to over 2.2 billion (USD 2.8 billion) 34. The ICI supports projects carried out in partner countries by federal implementing agencies, government organisations, NGOs, business enterprises, universities and research institutes, and by international and multinational organisations and institutes, e.g. development banks and United Nations bodies and programmes. The ICI finances and supports climate change mitigation, adaptation and biodiversity projects (up to 6 years) to help trigger private investments of a greater magnitude. The fund aims to promote measures for climate 33 Delivery options for the International Climate Fund Report prepared for ICF spending departments Final Report June Scoping Report Resource Mobilisation for Environmental Mainstreaming 65

66 change adaptation by supporting appropriate national programmes in selected partner countries that are especially vulnerable to climate change. This includes developing and implementing national adaptation strategies in partner countries that are particularly vulnerable to climate change. Support can be granted for technology cooperation, policy advice, capacity building and training, and for the elaboration of studies and strategies. Projects should be innovative in character (technologically, economically, methodologically, institutionally), integrated into national strategies, and contribute to national economic and social development. IKI supports projects across four areas of support: 1. mitigating greenhouse gas emissions, 2. adapting to the impacts of climate change, 3. conserving natural carbon sinks with a focus on reducing emissions from deforestation and forest degradation (REDD+), and 4. conserving biological diversity. Within 2, there are 4 areas of focus: ecosystem-based adaptation (EbA), climate-related risk management instruments, such as innovative insurance solutions, and the development and implementation of national adaptation strategies (including the optimisation of land use and water management concepts and the integration of adaptation aspects into cross-sector strategies). Currently this area accounts for 10% of the portfolio. Within 3, there are 4 areas: Redd+ mechanism - keeping forests intact for climate change mitigation; Ecological and social standards and additional benefits of carbon sequestration; Bonn challenge: restoring forest landscapes (including innovative approaches in forest landscape restoration and developing tools and financing instruments in order to scale-up efforts) ; and Monitoring, reporting and verifying redd+. Currently this area accounts for 16% of the portfolio. Within 4, there are 2 areas: Mechanisms for planning and managing biological diversity; and Protected areas and ecosystem services. Currently this area accounts for 13% of the portfolio. The application process begins with a formal request for proposals from the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). The applicant submits a Project Outline to the BMU for pre-selection which then requests a formal application for final review. One of the criteria used to select projects is the country s contribution to international climate cooperation, in particular in the context of the UN climate negotiations through support for implementation of the Cancu n and Durban Agreements, climate-related negotiations within the framework of the Montreal Protocol and/or contribution to international cooperation in the context of the CBD processes through support for implementation of the CBD Strategic Plan Proposals are scored on the basis of: potential for mobilising additional funding, private investments in particular, as well as sustainable business models for climate change mitigation and biodiversity conservation measures; innovation - ICI projects should follow technologically, environmentally, methodologically or institutionally ambitious and replicable approaches that are transferrable and that achieve results beyond individual projects; transparency of government structures handling climate financing; and ability to learn and communicate lessons. Grant recipients must also demonstrate relevant expertise in implementing international cooperation projects jointly with partners in the region, or that they have been successfully involved in project-related activities for at least three years. The government of the partner country must express an explicit interest in the project. The GoR has received two grants from the ICI: 1. USD 0.25 million grant to conduct a pilot study examining the feasibility of investment in forest and landscape restoration in Rwanda implemented through IUCN, and 2. USD 2.29 million to preserve Biodiversity in the Nyungwe Forest Scoping Report Resource Mobilisation for Environmental Mainstreaming 66

67 The GoR has also recently submitted a EUR 6 million concept note to the fund to develop an EBA decision support system to increase agricultural productivity in Rwanda. Germany s International Climate Initiative Rwanda has already accessed significant support from this fund for two projects and has recently submitted a 6 million grant proposal to the fund to develop an EBA decision support system to increase agricultural productivity in Rwanda. FONERWA awaits a decision from BMUB on whether a full proposal is required. Future funding applications can only be made if requested by the BMUB. Scoping Report Resource Mobilisation for Environmental Mainstreaming 67

68 Annex 3 Other Projects Trees for Food Security Project- Improving sustainable productivity in farming systems and enhanced livelihoods through adoption of Evergreen agriculture in eastern Africa Project Jun 2012 to Nov 2016 A regional project with Burundi, Ethiopia, Rwanda, Uganda funded by the Australian Centre for International Agriculture Research (ACIAR), the Trees for Food Security Project aims to enhance food security for resource-poor rural people in Eastern Africa through research that underpins national programmes to scale up the use of trees within farming systems in Ethiopia and Rwanda and then scale out successes to relevant agro-ecological zones in Uganda and Burundi. The specific objectives of the project are: 1. To characterize target farming landscapes and systems, and develop tools for matching species and management options to sites and circumstances. 2. To generalize predictions of impacts of tree species and management on crop productivity, water resources and nutrients at field, farm and landscape scales to inform scaling up to improve food security and reduce climate risk. 3. To develop effective methods and enabling environments for scaling up and out the adoption of trees on farms. 4. To develop databases and tools for monitoring and evaluation of the impact of scaling up and out the adoption of trees on farms. 5. To enhance capacity and connectivity of national partner institutions (including farmer groups) in developing and promoting locally appropriate options for adoption of farm trees. RAB is the partner agency in Rwanda. Scoping Report Resource Mobilisation for Environmental Mainstreaming 68

69 ` MINAGRI KG 569 Street Kigali Rwanda Agriculture Technical Assistance Facility