Rwanda - Develop a methane strategy for the livestock sub-sector sector and a funding proposal for upscaling anaerobic digestion of livestock manure [RW-23-003]

Overview

This project responds to a request by the Rwanda Environment Management Authority (REMA).

The agriculture sector is the primary source of methane emissions in Rwanda, largely driven by the country’s livestock sub-sector. According to the Rwanda’s first Biennial Update Report, the Enteric Fermentation and Manure Management accounted for 78.43 % share of national total methane emissions. Whereby, enteric methane and manure represents 76 per cent and 16 per cent respectively for dairy cattle emissions.

This project seeks to complement the Green Climate Fund (GCFP) regional project on Pathways to Dairy Net Zero: Promoting Low Carbon and Climate Resilient Livestock in East Africa (PADNET) by developing a methane strategy, that complements the CCAC supported methane roadmap that is on-going and that targets the mitigation interventions for cattle and small ruminant systems in the districts that PADNET does not target. These districts will be defined in consultation with the government of Rwanda and PADNET implementation team. The development of a methane strategy for the livestock sector and a comprehensive MRV system to monitor emissions reductions will build on comprehensive work carried out under the CGIAR-CCAFS Climate Finance Readiness, FAO analysis on development of low-emission dairy systems in East Africa, and the Pathways to Dairy Net Zero launched during the UN Food Systems Summit, as well as the engagement at COP26 towards a process aimed at systematically enhancing climate action in global dairy systems.

Rwanda is implementing the fourth phase of the Strategic Plan for Agricultural Transformation (PSTA 4) by promoting climate-resilient crops and livestock. This effort aims to support the transformation of livestock into a more efficient, inclusive, and sustainable sector that contributes to economic growth, food and nutrition security, while reducing emissions and other environmental impacts. Upscaling the use of modern on-farm anaerobic digestion of manure for bioenergy (biodigesters) is a priority measure in Rwanda’s Nationally Determined Contribution (NDC). It is estimated that $62 million is required to implement this action by 2030. Anaerobic digestion is reflected in Rwanda’s agriculture strategies and energy policy, which set out to promote the use of alternative fuels such as biogas derived from animal and plant waste as cooking fuel.

In addition to reducing methane emissions, the use of biogas is expected to provide additional benefits, including avoided deforestation in a country where 90 per cent of rural areas use firewood as a source of cooking fuel. This project is expected to develop a complete funding proposal for upscaling the use of biodigesters.

The requirements for this proposal are detailed below. Applicants are encouraged to propose additional outputs as needed to ensure the expected project results are achieved. This project is expected to launch in Q1 2024.

More information on Rwanda's involvement in the CCAC is available on their Partner Page.

Who to involve

Successful delivery of this project will require close coordination and engagement with the Ministry of Agriculture and Animal Resources (MINAGRI), Rwanda Agriculture Board, Rwanda Environment Authority (REMA), Ministry of Environment, Ministries of Local Governments, Ministry of Infrastructure (MININFRA).

Project applicants should seek complementarities with the Rwanda Dairy Development project phase II (RDDP II) and the Pathways to Dairy Net Zero (PADNET) regional GCF proposal, a collaborative effort involving multiple development partners, such as IFAD, FAO, and ILRI, among others. Its benefits will extend to Rwanda, Uganda, Tanzania, and Kenya.

Expected results

Applicants are encouraged to propose additional outputs as needed to ensure the expected project outcomes are achieved. Applicants can determine the scope of outputs if not specified. The project is expected to deliver at a minimum:

1. The Government of Rwanda has a demonstrated strengthened capacity for developing a Tier 2 emissions inventory for the livestock subsector (dairy cattle, swine, goats, poultry, sheep, etc.) by project the end of the project.

Indicator: Number of government entities with a demonstrated improved capacity for SLCP action

Output 1.1: Training workshops provided to relevant government stakeholders on Tier 2 inventory development for the livestock sub-sector, including on how to:

• Define data inputs
• Identify data gaps and propose data acquisition protocols
• Identify the climate change indicators, data collection and processing procedures, and recommendations of the organizations where indicator data can be obtained for the livestock subsector
• Develop an integrated GHG, SLCP assessment for the livestock subsector
• Assess methane mitigation potential of modern anaerobic digestion

2. The Government of Rwanda endorses a methane strategy for the livestock sub-sector (cattle and small ruminant systems) by the end of the project or soon after.

Indicator: Number of action plans, roadmaps, strategies, or other future plans with SLCP targets or mitigation measures formally adopted, endorsed and/or implemented.

Output 2.1: A methane strategy for the livestock sub-sector (cattle and small ruminant systems) that includes at a minimum: 

• Identification of methane mitigation options and best climate-smart livestock practices
• Provide an assessment of the methane mitigation potential and the cost of mitigation options and benefits of measures.
• Assessment of the institutional arrangements for implementation
• Assessment of the economic impacts
• Identification of emission reduction targets
• A monitoring and evaluation framework for the methane mitigation pathways
• Formulation of a methane strategy for the livestock sub-sector that builds on the work done by FAO during the design of PADNET as well as under the Flexible Voluntary Contribution sub-programme on livestock and climate actions.

3. The Government of Rwanda adopts a MRV framework for the livestock sub-sector by the end of the project or soon after.

Indicator: Number of monitoring, reporting, and verification (MRV) systems developed or updated that include SLCPs

Output 3.1: An integrated greenhouse gas and SLCP Monitoring, Reporting and Verification (MRV) framework for the livestock sub-sector.

Output 3.2: Identification of pilot farms where data can be collected and analysed. These farms could also serve as farm field schools to disseminate best practices among dairy farmers.

Output 3.3: Training provided to Rwanda Agriculture Board, Ministry of Agriculture and Animal Resources and affiliated agencies, Ministry of Environment, Ministry of Local Government, District and sector offices, CIAT – International Centre for Tropical Agriculture on MRV system as well as exploring the opportunity of markets for different feed additives following consultation with MINAGRI and Rwanda Food and Drugs Authority (FDA)

4. The Government of Rwanda submits a project proposal to address emissions of short-lived climate pollutants (SLCPs), particularly methane, through the adoption of modern anaerobic digestion to potential climate funding mechanisms by the end of the project or soon after. 

Output 4.1: Project proposal to address emissions of SLCPs through the adoption of modern anaerobic digestion targeting climate funding mechanisms.

Indicator: Amount of external funding ("catalyzed funding") for SLCP actions. 

Application process

Eligibility requirements

To be eligible for consideration, project proposals must meet the following requirements:

• Complete and submitted before the deadline
• Submitted by a non-governmental organization (NGO), intergovernmental organization (IGO), or other not-for-profit entity. Governments are not eligible to apply directly for funding in this call.
• Requested funding is within the estimated budget amount, or includes a clear justification for additional expenses 
• Project duration is less than 24 months
• Budget criteria are met and spending caps on expenses are respected. 

Please note that entities will be required to provide the last three (3) audited financial statements to be eligible for CCAC funding. These statements may be provided along with the application for funding or at the request of the CCAC Secretariat during the evaluation process.

For-profit entities may only participate in the project as stakeholders, co-funders, or end users. Applicants are encouraged to include for-profit entities in the development of the project proposal and/or during project implementation if their ownership of the proposed solution is key to the project’s success.  

How to apply

Eligible applicants are invited to apply using the Application Form and Excel Budget Form. Specific instructions on completing these forms are available in both documents. 

Applicants may choose to follow the cost range proposed above OR propose a different budget supported by a clear justification. However, applicants should note that cost efficiency will play a significant role in the selection process.

The completed Application Form and Excel Budget Form should be submitted to secretariat [at] ccacoalition.org (secretariat[at]ccacoalition[dot]org).

Evaluation criteria

Proposals will be evaluated against the following criteria:

• Presents a clear plan to achieve the required outcomes during the lifetime of the project or soon after
• Includes a plan or activities to enable the scaling up of, replication of, or sustained use of project results over time
• Sets out a clear approach for enabling or contributing to SLCP emissions reductions and resulting co-benefits
• Involves relevant stakeholders 
• Approach is grounded in a strong understanding of relevant risks
• Complements other relevant initiatives, funding mechanisms, and existing policy processes
• Applicant demonstrates necessary capacity and experience to perform the work
• A realistic, cost-effective, and clearly justified budget and approach is proposed
• Project meets the minimum requirements for the OECD DAC gender equality marker Score 1

Selection process

• A preliminary review of proposals submitted by the deadline will be conducted by members of the CCAC Secretariat, Funding Task Team, and Board, in consultation with relevant CCAC Partners.  
• Shortlisted applicants will be invited to present their proposals in further detail and to respond to follow-up questions about their application.
• Successful applicants will be invited to develop a Project Implementation Plan and Detailed Budget in consultation with the CCAC Secretariat and relevant CCAC Partners.

The selection process may take up to 6 months after the closing date of the call for proposals. Due to the high volume of requests, the CCAC will not respond to requests for updates or feedback during this time.

Note: Due diligence 

In addition to eligibility criteria outlined above, qualified UNEP/CCAC implementers* must meet the following criteria: 

• Have adequate financial resources to perform the contract and meet all existing commitments (financial health)
• Be able to provide proof of registration, proof of not-for-profit status and audited financial statements for the last three completed fiscal years 
• Have a record of satisfactory performance with UNEP/CCAC, when applicable; and  - Not have been suspended or debarred by UNEP/CCAC or another UN agency. UNEP/CCAC also considers entities included in the Security Council Resolution Lists to be ineligible for UNEP/CCAC agreements.

* (inter)governmental entities/ United Nations are exempt from this requirement

Procurement

As a general rule, Implementation Agreements allow for incidental procurement only, and as such, total costs in the following categories must fall below a certain threshold*:

• Contractual Services
• Equipment, Vehicles and Furniture
• Operating and other Direct costs
• Supplies, Commodities and Materials

*Agreements of $200,000 and below: up to $20,000 or 15% of total budget, whichever is lower.

*Agreements of above $200,000: up to $40,000 or 15%. * United Nations agencies are exempt from this requirement.