As part of CIF’s Nature, People, and Climate (NPC) investment programme, the governing board of the Climate Investment Funds (CIF) approved two investment proposals for a total of $61 million in funding. These plans use nature-based solutions to combat climate change in Rwanda and the Dominican Republic. The plans, which indicate potential co-financing of up to $500 million, will test ground-breaking approaches to enhance land use, bridge mitigation and adaptation to climate change, and create economic opportunities for Indigenous peoples and rural communities.
Recognising the close ties between different ecosystems, the small island developing state of Dominican Republic concentrated its investment plan on advancing integrated landscape methods from upland forest to coastal areas. Rwanda made the decision to concentrate CIF’s assistance on the most impoverished rural regions of the nation, providing creative funding for a wildlife conservation bond that supports important chimpanzee habitats that benefit the ecosystem as a whole. CIF’s Dedicated Grant Mechanism will also provide $8 million in direct assistance to local communities and Indigenous peoples in both partner countries.
For the very first time, the Dominican Republic will receive financing from a CIF program. The country, in partnership with the Inter-American Development Bank Group and the World Bank Group, will direct part of the $30 million CIF funding on “From Ridge to Reef” activities in the Yuna watershed. Featuring higher than average poverty levels, the watershed faces major adaptation challenges, with extreme weather events such as droughts and floods threatening livelihoods and ecosystems. The plan will tackle policy and regulatory issues, ecosystem restoration and conservation, and nature-positive economic diversification, notably through ecotourism. Co-financing is expected to reach up to $290 million in the country.
A $31 million grant will be given to Rwanda to address the structural issues preventing vulnerable populations in the Kaduha-Gitwe corridor from reaching their full potential. It will also help to create the Rwanda Wildlife Conservation Bond, a creatively designed bond for the financial market that aims to conserve wildlife, including chimpanzees that are in danger of extinction. The World Bank is in charge of both projects, and up to $283 million in co-financing is anticipated. In Rwanda, sometimes described as the “land of a thousand hills,” soil erosion and loss are significant problems. The plan places a high priority on managing wetlands and forests sustainably as well as restoring degraded land. The goal of Rwanda’s strategy is to facilitate cooperation amongst all stakeholders by coordinating and aligning the contributions of the nation’s primary environmental and climate funds.
CIF’s $370 million Nature, People, and Climate investment program supports the development of nature-based solutions in low- and middle-income countries, ranging from small island developing states to sub-Saharan Africa and Latin America. It funds initiatives that recognize the interdependence of land use, climate-change mitigation and adaptation, and the improvement of livelihoods for rural communities and Indigenous peoples. One region and seven countries are currently part of the program.
“Today, the Climate Investment Funds endorsed the very first investment plans as part of the Nature, People, and Climate program. Congratulations to the Dominican Republic and Rwanda for their impressive climate ambitions! Again, we pioneer new approaches with our country partners, bridging the gap between mitigation and adaptation funding. Their programs will bring co-benefits such as improved biodiversity and enhanced livelihoods, with a specific focus on vulnerable groups such as Indigenous peoples and local communities.” Quoted by Tariye Gbadegesin – CEO, Climate Investment Funds