Financing inclusive investment in low carbon climate resilient development: The national climate finance landscape in Ethiopia and Rwanda
International and national policymakers are promoting investment in low carbon climate resilient development (LCCRD) to address the challenges and opportunities provided by climate change. Ethiopia and Rwanda are two of several countries that are investing in an LCCRD pathway. The investment is expected to achieve, protect and enhance development gains made by households and the economy in the context of escalating climate change impacts. Policymakers will need to identify policy options to mobilise and deliver appropriate finance to support investment in LCCRD, including: scaled up finance to support the current and projected cost of LCCRD investments, long-term finance to sustain and incentivise investment in LCCRD, and flexible and accessible finance to enable the most vulnerable to invest in LCCRD.
By showing how policy actors in Ethiopia and Rwanda are shaping investment in LCCRD the paper identifies ways in which policymakers can establish coalitions to mobilise and deliver climate finance for inclusive investment in LCCRD. This paper is based on a political economy analysis of stakeholder choices vis-à-vis climate finance. It outlines the financial intermediaries, financial instruments and financial planning systems, which are used to access and allocate different sources of climate finance.