NDF - Financing for climate change and development projects

Improving charcoal value chain [NDF C95]

Photo: LAFREC Project
Photo: LAFREC Project
Photo: LAFREC Project
Photo: LAFREC Project
Photo: LAFREC Project
Photo: LAFREC Project
18.01.2017
This project will improve efficiency and sustainability along charcoal value chains in Northwest Rwanda in support of forest landscape restoration and rural livelihoods.

Rwanda
Improving charcoal value chain
Project ref: C95

NDF contribution: EUR 3.7 million
Total project cost: USD 16.4 million
Project period: 2017–2019
Partner agency: The World Bank
Implementing Agency: Rwanda Environment Management Authority (REMA) under the Ministry of Natural Resources (MINIBENA)

Objectives

The NDF-supported activities will improve efficiency and sustainability along charcoal value chains in Northwest Rwanda in support of forest landscape restoration and rural livelihoods.
The following outcomes are expected:

  • Improved woodlot management

Woodlots management will be incorporated into the Gishwati-Mukura landscape. The activities will build upon existing plans and training, initiate local-level planning of woodlots to improve management and increase productivity in order to reduce pressure on natural forests.

  • Improved seed quality

Support will be provided to the National Seed Centre. It will cover both productivity aspects and the viability of climate-resilient tree seeds. NDF's support will improve and diversify the tree seed pool. Local cooperatives will be trained in the use of new varieties and in seed collection, handling and distribution.

  • More efficient charcoal production

Woodlots and charcoal cooperatives will be assisted in gaining better market access for their products. Cooperatives will be formed or strengthened to improve uptake of better production techniques, and also to improve the value, quality and marketing of the charcoal produced. Mobile sawmills and furnaces that increase productivity will be tested to be managed and maintained by the cooperatives. The training will cover business planning as well as regulations for production. It will also improve distribution links between production and the markets and add value through labelling and branding of certified green charcoal if feasible.

  • Support for promotion of alternative sources of energy

Two activities aiming at reducing the pressure on wood fuel demand are proposed targeting commercial tea factories' wood consumption and households' cooking needs.

Financing

The total project cost estimate is EUR 15.4 million. NDF is providing EUR 3.7 million in grant while the World Bank provides USD 9.5 million (~EUR 8.9 million) and the Government of Rwanda USD 3.0 million (~EUR 2.8 million).

NDF Contact

Country Program Manager Martina Jägerhorn
Telephone +358 10 618 002

More information

NDF C95 Proposal for final consideration
NDF C95 Proposal for pipeline consideration