KIGALI, Jan. 31 (Xinhua) -- Rwanda is considering setting up a green investment bank to bridge the financing gap so as to meet the country's climate adaptation and mitigation needs, an official said here Thursday.
"Rwanda has an ambitious climate action agenda to build resilience to climate change and foster green growth ... Having a green investment bank will no doubt bridge the financing gap in our market," said Rwandan Minister of Environment Jeanne d'Arc Mujawamariya while addressing a meeting on the new bank.
Finance has become the center of climate action policies and strategies, the minister said, adding that a green investment bank will act as a force multiplier.
The bank would mobilize private finance and strengthen climate finance in Rwanda by empowering the country to better access international non-grant finance, the minister noted.
Activities that the bank would finance include mainstreaming climate in priority sub-sectors such as biomass replacement, green cities, sustainable transport, waste management and climate-smart agriculture, which are all critical for Rwanda's economic transformation, Mujawamariya said.
According to Rwanda's Ministry of Environment, the country could lose 1 percent of its gross domestic product (GDP) annually due to climate change-related losses by 2030 and an even greater proportion thereafter.