Prime Minister Edouard Ngirente will lead Rwanda's delegation that will take part in a Summit for a New Global Financing Pact in Paris, France, from Thursday, June 22 to Friday, June 23. The Minister for Finance and Economic Planning, Uzziel Ndagijimana, alongside other officials, will also participate in the summit.

The primary focus of the summit will be on green financing as a means to address the challenges posed by climate change, biodiversity protection, and the fight against inequality, all in pursuit of the Sustainable Development Goals (SDGs).

ALSO READ: Fueling green financing in Africa: Innovations from Rwanda

Co-organized by France and India, with India holding the presidency of the G20 this year, the summit will facilitate high-level discussions among Heads of State and Government, leaders of international organizations, representatives from civil society, foundations, funds, and the private sector.

The French Embassy in Rwanda said in a statement that, "Rwanda's high-level participation in the Paris summit demonstrates the country's commitment to improving climate finance architecture and sharing lessons from its own experience."

In 2013, Rwanda established the Rwanda Green Fund (FONERWA) to mobilize funds for both public and private green projects, which has successfully raised $247 million so far. The government's goal is for a minimum of 30 percent of total fund commitments to target the private sector. The fund has financed 46 green projects, resulting in the creation of 176,188 green jobs.

ALSO READ: Fonerwa wins top UN award for climate action

Furthermore, the fund serves as a government tool to mobilize climate finance and implement Rwanda's $11 billion climate plan from 2021 to 2030.

Last year, President Paul Kagame launched "Ireme Invest," Rwanda's green investment facility, with an initial capitalization of $104 million (approximately Rwf109 billion). The facility aims to drive private sector ventures in climate-resilient projects and employs a blended finance approach, including debt, credit enhancements, and collateral support for commercially viable projects in the green sector.

These innovative financing strategies will be among the key topics discussed at the Paris summit.

During an online press conference on June 20, Ombeline Gras, an Advisor on Global Issues to the French President, emphasized that "we do not have to choose between fighting poverty, tackling climate change and its impact, and protecting biodiversity. A just transition is the only answer."

Gras highlighted the urgent need to address the financing gap and expand the coalition of donors, given the crises of Covid-19, worsening climate change, and the world's pursuit of sustainable development goals.

The Secretary-General of the United Nations will also attend the Paris summit to advocate for a reform of the international financial system, which currently lacks the necessary tools to address present-day challenges. Countries in the Global South, despite contributing less to global pollution, face the greatest threats from the climate crisis.

Natural disasters in 2022 alone cost these countries over $300 million, severely impacting their economies. Consequently, the "great financial divide" continues to widen, leaving Global South nations more vulnerable to shocks.

Developing countries lack the necessary resources for recovery, climate action, and the achievement of the Sustainable Development Goals, further exacerbating their setbacks and diminishing their potential to benefit from future transitions, including the green transition.

ALSO READ: Vulnerable Africa faces heavy climate finance shortfall

According to Secretary-General António Guterres, the global financial system, which manages around $300 trillion in financial assets, is inadequately equipped for its current purpose.

"Today's poly-crises are compounding shocks on developing countries—largely due to an unfair global financial system that is short-term, crisis-prone, and further exacerbates inequalities," Guterres said.

The Paris summit is one of many international events scheduled throughout the year, including the G20, the SDG Summit, and COP28. By Michel Nkurunziza, The New Times