The project is designed to generate significant positive environmental impacts, with moderate environmental and social risk that is carefully managed under the World Bank’s Environmental and Social Framework.

Key environmental impacts include:

• Restoration of degraded ecosystems, including forests, wetlands, riverbanks, and catchments
• Reduction of soil erosion and sedimentation, especially in high-risk slopes and watersheds
• Improved water quality and natural flood regulation, reducing damage to infrastructure and farmland
• Biodiversity conservation, through restoration of habitats and use of native and indigenous species
• Climate change mitigation, with an estimated 3.2 million tons of CO₂ equivalent mitigated through reforestation, agroforestry, and improved land management practices

Overall, the project strengthens ecosystem services that are critical for climate adaptation and disaster risk reduction.

The project strongly supports sustainable development by integrating environmental restoration with social and economic benefits.

Key sustainable development elements include:

• Sustainable land management (SLM) and climate-smart agriculture to increase long-term land productivity
• Livelihood diversification, including non-timber forest products, agroforestry, and nature-positive enterprises
• Inclusive development, with a strong focus on women, youth, and vulnerable groups
• Private sector engagement, encouraging sustainable investments in forestry and landscape-based value chains
• Institutional strengthening, policy alignment, and participatory planning to ensure long-term sustainability beyond the project period

By linking ecosystem restoration with income generation and governance reforms, the project supports Rwanda’s Vision 2050, Green Growth and Climate Resilience Strategy, and Nationally Determined Contributions (NDCs)