Kigali, Rwanda, 12 December 2025 — The Global Green Growth Institute (GGGI), Rwanda, in partnership with the Government of Rwanda through the Ministry of Environment, convened a National Consultation Workshop to explore the feasibility of establishing a Payment for Ecosystem Services (PES) mechanism for Rubavu and Rutsiro districts. The workshop was held on Friday, 12 December 2025, and brought together government institutions, development partners, private sector actors, and civil society organizations to reflect on emerging evidence and discuss Rwanda’s readiness to pilot a PES scheme.

The consultation is part of the ‘Enhance access to affordable and diversified financing through Payment Ecosystem Services (PES) and blended finance to promote sustainable forestry practices and accelerate the clean cooking transition in Rwanda’ Action. It aims to pilot and design innovative financing instruments that will enhance access to innovative, affordable and diversified financing to accelerate the clean cooking transition and adoption of sustainable forestry practices in Rwanda. This activity is carried out with the support of the Sustainable Forestry and Efficient Renewable Energy for Improved Livelihood (SFERE) project, funded by the Grand Duchy of Luxembourg and implemented by the Rwandan Ministry of Environment, the Luxembourg Development Cooperation Agency (LuxDev) and GGGI Rwanda. As a key first step, GGGI is conducting a pre-feasibility study assessing the technical, institutional, and financial viability of PES in the two target districts. During the workshop, stakeholders validated the findings of the prefeasibility study and endorsed GGGI to proceed with the next phase—developing a robust, evidence-based Business Case for a PES mechanism and initiating the design of a contextually appropriate scheme for the two target districts.

Caroline Raes, GGGI’s Country Representative in Rwanda, noted, “This endorsement marks a critical step toward advancing sustainable land and forest management in the targeted districts. By moving forward with a robust, evidence-based Business Case for Payment for Ecosystem Services, we are laying the foundation for an innovative mechanism that not only protects our ecosystems but also creates tangible benefits for economic actors and communities in Rubavu and Rutsiro districts. This is about turning environmental stewardship into real economic opportunity.”

 

Anabella Umuhoza Kayihura, Climate Resilient Investment and Partnership Specialist who represented the Ministry of Environment, noted, “The outcomes of the consultation will be instrumental in guiding the next steps, shaping the development of a robust business case, detailed design, and ultimately, the implementation of a PES mechanism that is well-adapted to Rwanda’s unique context.”

Over the past months, GGGI has carried out extensive field assessments and district-level consultations to identify priority ecosystem services, understand community and stakeholder needs in Rubavu and Rutsiro districts. The National Consultation Workshop builds on this work and provides a platform for national-level reflection.

Jitendra Sinha, Chief Technical Advisor at the Luxembourg Development Cooperation Agency in Rwanda, stated, “LuxDev is happy for this collaboration with GGGI to develop innovative financing solutions – blended finance and Payment for Ecosystem Services (PES), which will immensely help communities with affordable and accessible finance to sustain their livelihoods while contributing towards environmental sustainability.”

 Rwanda’s natural capital, its forests, soils, and watersheds, plays a critical role in supporting livelihoods, agriculture, hydropower generation, and clean water supply. Yet pressures from population growth, unsustainable farming, and land degradation continue to undermine ecosystem health, affecting both upstream communities and downstream users such as water utilities, tea and coffee industries, and other businesses. Additionally, Rwanda’s cooking energy landscape continues to be dominated by traditional biomass, which remains the primary source of household energy across the country.

This heavy reliance on firewood and charcoal has significant environmental and socio-economic consequences, including deforestation, soil erosion, and increased disaster risk in forest-dependent communities. Currently, inefficient biomass-based cooking methods account for approximately 90 per cent of national cooking energy demand, while modern and transitional energy technologies represent only about 10 per cent.

Payment for Ecosystem Services offers an innovative and results-based approach where beneficiaries of ecosystem services financially reward those who protect and restore them. While Rwanda does not yet have a fully established PES mechanism, policies such as the National Environment and Climate Change Policy (2019), National Forestry Policy (2018), and the National Climate and Nature Finance Strategy (2024–2030) provide a strong foundation for piloting a sustainable and context-appropriate PES scheme.

The outcomes of the workshop will inform the next steps of the SFERE project, including the design of a PES mechanism that is locally grounded, institutionally viable, and financially sustainable. Once designed, the PES will not only protect the environment but also sustain communities and economies for generations to come.

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Note

The Global Green Growth Institute (GGGI) is a treaty-based international organisation dedicated to supporting sustainable, inclusive, and climate-resilient economic development in developing countries and emerging economies. In Rwanda, GGGI supports the government’s efforts to achieve the country’s green growth and climate resilience goals, aligning with its 2050 vision.

The Ministry of Environment provides oversight in environmental protection, climate action, and natural resource management in Rwanda. It oversees policy implementation and supports initiatives that promote sustainable development and the well-being of citizens.

Disclaimer: The content of this document is the sole responsibility of GGGI and can in no way be taken to reflect the views of the Grand Duchy of Luxembourg.

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For media inquiries at GGGI Rwanda, please contact:

Innocent Muvunyi, Senior Communications and Knowledge Sharing Associate

• innocent.muvunyi@gggi.org | +250788353906