Building case for climate-compatible development in Rwanda

There is an increasing awareness that the effects of climate change are likely to change patterns of innovation, trade, production, population distribution and risk. It is also understood that the countries likely to be most affected are those most in need of social and economic development, such as Rwanda.

Climate compatible development (CCD) responds to both of these issues by moving beyond traditional climate engagement strategies and emphasizing those that minimise the harm caused by climate impacts while maximizing the many human development opportunities associated with a low-emission, more climate-resilient future.

Genesis Analytics was engaged by the Climate and Development Knowledge Network (CDKN) on behalf of the Rwanda Environment Management Authority (REMA) to conduct a study to build a business case framework for investment in climate compatible development in Rwanda. This study was the first phase in developing the business case for further investment in CCD in Rwanda.

The business case was to use a bottom-up assessment of the monetary and non-monetary costs and benefits of CCD projects that were being funded through the Adaptation Fund. While cost-benefit analyses are often heavily reliant on assumptions for estimating benefits and costs, this study was to reduce that reliance by conducting impact assessments prior to the cost-benefit analyses.

Genesis led Phase 1 of this study, which involved the review of 19 climate projects using a three-tiered screening tool. The output of this review was a selection of projects that were appropriate for an impact assessment, cost-benefit analysis (CBA) and would be able to contribute to the development of the business case for investment in CCD in Rwanda. After the selection, approaches for assessing the impact of the projects were designed, and an outline for the business case was drafted.