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Uganda's National Budget Context for Climate Change, Loss and Damage, and Renewable Energy Funding
Uganda is at a critical moment in its budget planning cycle. As the government finalises the FY2026/27 national budget, CECIC has analysed how climate change, loss and damage, and renewable energy are reflected in Uganda's public spending and what this means for communities in the Rwenzori region.
Our analysis finds that while Uganda has a strong legal framework for climate action, including the National Climate Change Act, the national budget does not yet have a clearly labelled "Loss and Damage" funding line. Money for climate-related disasters and recovery is scattered across different government votes and departments, making it difficult to track, measure, or hold accountable. For a region like Rwenzori, which faces serious risks from floods, landslides, and ecosystem degradation, this gap is deeply concerning.
On renewable energy, there is progress. The government is expanding its Sustainable Energy Development programme and attracting large international investments, including a US$638 million World Bank project for electricity access. Tax exemptions for solar products such as lanterns and batteries are also improving affordability. However, decentralised energy solutions that would directly benefit remote Rwenzori communities remain underfunded.
Uganda's public debt, standing at US$34.86 billion as of December 2025, limits the government's ability to fund climate responses domestically. This makes transparent management of international climate finance more important than ever.
CECIC is calling on government, Parliament, and development partners to take eight priority actions, including creating a dedicated Loss and Damage budget window, scaling off-grid renewable energy access in the Rwenzori corridor, and improving the transparency of climate spending from allocation to real results on the ground.
Communities cannot wait. Climate finance must reach those who need it most.
Read the full report on our website or contact CECIC for more information.
