This report analyses how selected public subsidies in Rwanda affect biodiversity and how they can be redesigned to better support environmental sustainability while maintaining development gains. Commissioned by the Rwanda Environment Management Authority (REMA) with support from UNDP and BIOFIN, it focuses on three priority subsidies: the Crop Intensification Programme (CIP), Clean Cooking Results-Based Financing, and tax incentives for tourism investments. 

Using economic, environmental and institutional analysis, the study shows that while these subsidies support food security, energy access and tourism growth, some also unintentionally drive habitat loss, soil degradation, pollution of wetlands, and pressure on ecosystems—particularly through fertiliser use in agriculture and poorly regulated land conversion.

The report proposes practical redesign options grounded in environmental justice, including phasing out harmful incentives, scaling up organic fertilisers, strengthening clean energy solutions, and promoting green tourism investments. It also presents future scenarios and action plans to guide policymakers in transitioning Rwanda’s subsidy system toward biodiversity-positive and climate-resilient development pathways.