Rwanda launches Carbon Market Framework to advance Climate Action for a Sustainable Future

Rwanda has today launched its National Carbon Market Framework in a significant stride towards a greener and more sustainable future. The framework was launched on the sidelines of the UN Climate Change Conference (COP28) in Dubai, UAE.

Rwanda has a bold vision to be climate resilient and carbon neutral by 2050. To achieve this ambitious goal, the Government of Rwanda has taken a groundbreaking step to establish a carbon market framework.

This first ever carbon market framework blueprint underscores Rwanda's commitment to combating climate change and fostering a sustainable future. 

“As we embark on this transformative journey, we recognise the importance of collaboration, innovation, and shared responsibility in shaping a low-carbon economy. Together, we have the opportunity to drive positive change, foster green growth, and build a resilient environment,” said Dr. Jeanne d’Arc Mujawamariya, Minister of Environment.

The framework sets rules for the trading of carbon credits, encouraging businesses and industries to adopt cleaner practices and invest in sustainable technologies. The framework aims to help to increase the transparency and trust among the carbon traders.

“Bringing more of these carbon markets onto exchanges will enhance transparency and bring greater confidence to the carbon market, which extends to pricing mechanisms and the prevention of double counting,” Minister Mujawamariya added. 

Carbon trading works by setting a limit on the total amount of greenhouse gas emissions a country can produce. Industries are then allocated emissions allowances, and those with excess allowances can sell them to those exceeding their own limits. This creates a financial incentive for businesses to reduce their carbon footprint.

Rwanda's Carbon Market Framework was commissioned by the Rwanda Environment Management Authority (REMA), the carbon market regulator, with support from the United Nations Development Programme. The establishment of the framework demonstrates Rwanda’s commitment to achieve emission reduction targets set out in Rwanda's NDC Climate Action Plan.

Rwanda will offer high quality carbon credits that will not only provide climate benefits, but also empower communities and protect and restore biodiversity.

“The framework will ensure that every credit bought in Rwanda will be done in a way that is transparent, verified and meets the requirements of the international carbon market,” said Juliet Kabera, Director General, Rwanda Environment Management Authority

Rwanda's carbon market will operate on a cap-and-trade system, allowing businesses to buy and sell carbon credits. This market-driven approach provides economic incentives for companies to reduce their carbon footprint.

Rwanda is committed to collaborating with international partners, businesses, and organisations to enhance the effectiveness of the Carbon Market Framework. This includes sharing best practices, promoting knowledge transfer, and participating in global efforts to address climate change.

Projects seeking to generate carbon credits will undergo rigorous validation and certification processes to ensure they meet internationally recognised standards. This guarantees the credibility and environmental integrity of the carbon credits traded on the market.

At today’s Carbon Market Framework launch, Rwanda signed cooperation agreements with Singapore and Kuwait towards the implementation of Article 6 of the Paris Agreement, which governs the carbon market.

 

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