[Rwanda] Poverty-Environment Initiative

Environmental Fiscal Reform (EFR) Country Experience

Presented to the PEI Africa Regional Economic Forum 8-11 November 2010

Government of [Rwanda] UNDP-UNEP Poverty- Environment Initiative Outline

1. PEI Program Objectives 2. Key Achievements related to Environmental Fiscal Reform 3. Objectives and Methodology 4. Key Findings/Recommendations 5. Policy Impact 6. Challenges and Response 7. Lessons Learned 8. Next Steps

Government of [Rwanda] UNDP-UNEP Poverty- Environment Initiative BACKGROUND

• Aims to enhance the contribution of sound environmental management to poverty reduction, sustainable economic growth and achievement of the Millennium Development Goals • Phase II is the integration of environment into national policy and district planning, policy and budget processes to implement the Economic Development and Poverty Reduction Strategy (EDPRS) • • • • • Improved capacity within key ministries and institutions Improved capacity at district level Increased awareness and more effective participation of stakeholders Improved national funding levels for investing in environmental sustainability Improved capacity for monitoring poverty and environment linkages

Government of [Rwanda] UNDP-UNEP Poverty- Environment Initiative BACKGROUND

• PEI, Rwanda is implemented by a cross-ministerial stakeholder partnership that includes: • Ministry of Environment and Lands (MINELA); Ministry of Forestry and Mines (MINIFOM); Ministry of Finance and Economic Planning (MINECOFIN); Ministry of Local Government (MINALOC); Ministry of Agriculture (MINAGRI); Ministry of Infrastructure (MININFRA) and Ministry of Industry and Trade (MINICOM).

• Local level implementation is executed through the decentralization policy process The project will be coordinated and implemented by Rwanda Environment Management Authority (REMA).

Government of [Rwanda] UNDP-UNEP Poverty- Environment Initiative

• • • • • •

KEY ACHIEVEMENTS

It has demonstrated potential for new sources of capital for Fonerwa (the fund for environment) and as such is will promote sustainability towards effective poverty reduction and economic growth.

The study will continually inform coordination and management of other funds in the pipeline at both national and regional levels including but not limited to Climate Change Adaptation Fund.

Engaging the government on processes that can trigger additional external incentives and resources – Funds in the name of climate change e.g. REDD – Funds under Clean Development Mechanisms and payment for ecosystem services Raising voice to ensure treasury provides reasonable seed funds for start-up; Promoting political momentum towards internal and external resource mobilization management for poverty reduction; Broadening advocacy for sustainable financing to overcome the challenge of budget constraint