Jun 13, 2024
Washington, DC - Today the governing board of the Climate Investment Funds (CIF) endorsed two investment plans for a total of $61 million in funding, harnessing nature-based solutions to address climate change in the Dominican Republic and Rwanda, as part of CIF’s Nature, People, and Climate (NPC) investment program. The plans, which identify up to $500 million in expected co-financing, will pilot pioneering solutions to improve land use, bridge climate mitigation and adaptation, and develop sources of livelihoods for rural communities and Indigenous peoples.
Dominican Republic, a small island developing state, focused its investment plan on progressing integrated landscape approaches from upland forest to coastal areas, recognizing the intimate links between various ecosystems. Rwanda chose to focus CIF’s support on the poorest rural areas of the country, with innovative funding for a wildlife conservation bond supporting key chimpanzee habitats that provide ecosystem-wide benefits. In both partner countries, CIF’s Dedicated Grant Mechanism will also channel direct funding to Indigenous peoples and local communities, $8 million overall.
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.
Rwanda will receive $31 million in financing to address systemic challenges holding back vulnerable populations in the Kaduha-Gitwe corridor. It will also support the launch of the Rwanda Wildlife Conservation Bond, an innovative capital market structured bond to promote biodiversity, including endangered chimpanzees. Both projects are implemented by the World Bank and co-financing of up to $283 million is expected. Soil loss and erosion are major issues in Rwanda, known as the land of a thousand hills. The plan prioritizes restoration of degraded land and sustainable management of forests and wetlands. Rwanda’s strategy coordinates and aligns the contributions of all the major climate and environmental funds in the country, facilitating collaboration between all the players.
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.
Tariye Gbadegesin - CEO, Climate Investment Funds
“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.”
Dr. Max Puig - Executive Vice President of the National Council for Climate Change and Clean Development Mechanism, Dominican Republic
"We thank the Climate Investment Funds and the countries involved; your support is helping us advance the climate agenda in the Dominican Republic. The investment plan approved today, the first that the Dominican Republic presents to the CIF, reflects the joint effort of the CIF, multilateral banks, the Dominican government, NGOs, and the private sector, working together on the ground to achieve a sustainable future. This impact will be transformational in the Yuna watershed and will be replicable inside and outside the Dominican Republic."
Hon. Dr Jeanne d'Arc Mujawamariya - Minister of Environment, Rwanda
"We are immensely proud that Rwanda has been selected for the CIF Nature, People and Climate (NPC) program. This achievement is a testament to the robust collaboration among our diverse stakeholders, including Multilateral Development Banks (MDBs), government agencies, district authorities, civil society, and the private sector. Together, we have laid a solid foundation that will not only enhance the livelihoods of our vulnerable communities but also foster innovation in conservation efforts, exemplified by the introduction of a wildlife conservation bond. This initiative promises to enhance climate adaptation and create sustainable economic opportunities while protecting our rich biodiversity, ensuring a resilient and thriving future for all Rwandans."
Katharina Falkner-Olmedo - Dominican Republic Country Representative, Inter-American Development Bank
"Climate change is a reality in the Dominican Republic. An approach towards sustainable development that is positive for nature will allow the country to improve socioeconomic opportunities for its citizens. This program will restore the watershed's ability to regenerate water, conserve soils, and prevent sedimentation, and thus ensure food security and increase agricultural productivity in the Yuna watershed."
Valerie Hickey - Global Director of Environment, Natural Resources and Blue Economy, World Bank
"We will never have a world without poverty in a world without nature. Nature is an engine of economic development, its conservation and sustainable use underpinning hundreds of millions of jobs and feeding billions. Nature is also a critical tool to bend the curve of carbon emissions to zero; and is often the only available and affordable adaptation technology for millions of people at the rural and coastal frontier. That’s why we loudly applaud the NPC investment plans that chart a compelling path to deploying nature in the battle against climate change."
Learn more:
CIF Nature, People and Climate investment program
Dominican Republic’s Investment Plan in brief – in full
Rwanda’s Investment Plan in brief – in full
