Rwanda Carbon Market

The carbon market is a global market in which carbon credits can be bought and sold in line with specific standards and guidelines. The goal of the carbon market is to reduce greenhouse gas emissions. There are a number of ways to participate in the carbon market in Rwanda and contribute to reducing greenhouse gas emissions. Explore them below

Standardized Crediting Framework (SCF)
Rwanda Carbon Registry

What is the Carbon Market?

The carbon market is a global market in which carbon credits can be bought and sold in line with specific standards and guidelines. The goal of the carbon market is to reduce greenhouse gas emissions. 

Under the rules of the carbon market, countries are allocated a number of permits to emit carbon dioxide up to a certain level. If a country does not use all of its permits, it can sell the unused permits to another nation that wants to emit more carbon dioxide than its permits allow.

The carbon market was introduced by the Kyoto Protocol to allow more flexibility in how countries reduce their greenhouse gas emissions. It offers developed countries the possibility to invest in cost-effective mitigation options, with the goal of increased global ambition in greenhouse gas emissions reduction. 

The carbon market includes market mechanisms established under Kyoto Protocol, including the Clean Development Mechanism, International Emissions Trading, and Joint Implementation. These are regulated by the United Nations Framework Convention on Climate Change and the Voluntary Carbon Market. The Voluntary Carbon Market allows individuals and companies to offset or reduce emissions through various financing mechanisms.

What does the Carbon Market look like in Rwanda?

Despite its low level of emissions, Rwanda has the potential for a range of carbon market projects due to its vision to become a developed, carbon-neutral, and climate-resilient economy by 2050. The carbon market will play an important role in reducing greenhouse gas emissions and contributing to the sustainable development of the country.

In Rwanda, the Clean Development Mechanism (CDM) and Voluntary Carbon Market (VCM) are the two operational mechanisms. Carbon credits in Rwanda are currently dominated by improved cookstove projects which account for 87% of total Certified Emission Reductions issued, while lighting and solar together represent 9% and 4% respectively.

By December 2020, more than 2,250,000 carbon credits had been issued to Rwanda from the Clean Development Mechanisms and the Voluntary Carbon Market. All CDM activities have issued 724,320 Certified Emission Reductions (CERs) while the VCM activities have issued 1,525,680 Voluntary Emission Reductions (VERs).

How can I get involved in the carbon market in Rwanda?

If you have a project that can quantifiably reduce greenhouse gas emissions, the next step is to develop a project design document. Under Article 6.2 and Article 6.4, consider exploring  the Carbon Market Framework of Rwanda. 

The project must go through the national approval process led by the Rwanda Environment Management Authority, which is the National Designated Authority (NDA) under Articles 6.2 and 6.4. REMA then confirms if the project will assist Rwanda in achieving sustainable development, and after considering other factors. 

The carbon component of a mitigation project cannot acquire value in the international carbon market unless submitted to a verification process designed specifically to measure and audit the carbon component. Therefore, once the project is operational, participants prepare a monitoring report, including an estimate of Certified Emission Reductions (CERs) generated, and submit it for verification by an operational entity. 

Verification is the independent determination by an operational entity of the monitored reductions in emissions. The operational entity must ensure the Certified Emission Reductions have resulted according to the guidelines and conditions agreed upon in the initial validation of the project. Following a detailed review, the operational entity will produce a verification report and then certify the amount of Certified Emission Reductions generated by the project.

 

Apply For Project Approval

Rwanda Carbon Market Framework for Article 6 of the Paris Agreement

The purpose of developing and establishing the Article 6 framework is to facilitate Rwanda’s participation in carbon markets, both within and outside Article 6 (6.2 and 6.4), and in non-market approaches under Article 6.8. The framework will help in bringing confidence to the market and reduce uncertainty for project participants, particularly for the private sector. 

The framework establishes a governance and institutional structure that will make it possible for Rwanda to make further considerations regarding its participation in carbon markets. In addition, the framework provides an operationalization of operational/technical elements, such as determining specific procedures necessary to participate, including but not limited to, the project cycle, requirements to ensure environmental integrity, and processes for reporting.

Download Here

Carbon Market Mechanisms

Voluntary Carbon Market

Standardized Crediting Framework (SCF)

Latest News