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By Annonciata Byukusenge
Rwanda has earned more than $1.5 million, equivalent to about 2.2 billion Rwandan francs, from the sale of carbon credits generated by various projects, as the country’s environmental regulator says 29 initiatives have so far been registered under its carbon market framework.
The carbon market is based on the volume of greenhouse gas emissions that a project can prevent or reduce. One carbon credit represents one ton of carbon dioxide that a project has kept out of the atmosphere or removed from it.
Faustin Munyazikwiye, deputy director general of the Rwanda Environment Management Authority (REMA), explained how the system works.
“We calculate it so that one credit equals one ton of CO₂ that a project has either prevented from entering the atmosphere or removed from it,” he said.
He said REMA has registered 29 projects spanning sectors including agriculture, forestry, transport, energy, and waste management.
The projects fall under Rwanda’s Nationally Determined Contributions (NDCs), the country’s commitments under the Paris Agreement, and include both private initiatives and state-run schemes such as hydropower dams operated by the Rwanda Energy Group (REG).
Some of these projects have already reached the stage of selling carbon credits, after being registered, verified, and monitored by international bodies to confirm that the emissions reductions they pledged have actually been achieved.
Munyazikwiye said anyone wishing to bring a project into the carbon market must submit it to REMA, the agency responsible for implementing the market, following registration guidelines published on the authority’s website.
“That means anyone in the carbon market has to submit their project to REMA. The registration procedures are all on REMA’s website, where people can access them,” he said.
Once a project is submitted, REMA works with a technical committee drawn from various ministries, government agencies, and private institutions to assess it against established criteria before determining whether it can proceed to the carbon market.
How are carbon credits approved?
Before carbon credits can be sold, internationally accredited verification bodies conduct audits to confirm that the emissions reductions claimed by a project have actually taken place.
Munyazikwiye said these bodies check, for example, whether a project that pledged to cut 100 tons of emissions over a given period actually achieved that reduction.
Once the verification bodies approve a report, it is submitted to REMA, which represents Rwanda in the carbon market and confirms the auditors’ findings. Only then can the approved carbon credits be brought to market.
Munyazikwiye said, “Carbon credit prices fluctuate, ranging between $14 and $45 per credit depending on market conditions and the type of carbon market a project is part of. He noted there are two main types, the voluntary carbon market, which buyers and sellers enter by choice, and the compliance, or regulated, carbon market, which is tied to countries’ binding commitments.”
He added that Rwanda is now training local personnel to carry out verification for projects entering the carbon market, a task currently handled by foreign auditors, which drives up costs.
Rwanda has received close to $1.5 million.
Munyazikwiye said Rwanda has so far received close to $1.5 million from carbon credits sold by various projects.
He explained the figure reflects a small percentage that the government requires be channeled into the national treasury from each transaction.
“Across the projects we have here in Rwanda, the country has received close to $1.5 million from carbon credits that various projects have sold, because the government has set a small percentage that goes into the state treasury; that is the amount we have received so far,” he said.
He added that Rwanda has signed international agreements with other countries, including Singapore, under which those countries commit to purchasing carbon credits generated in Rwanda.
Environment Minister Bernadette Arakwiye said the carbon market gives Rwandans an opportunity to earn income through activities that reduce or eliminate greenhouse gas emissions.
She cited tree planting as an example, where Rwandans can design projects, measure the resulting emissions reductions, and generate carbon credits they can then sell on the market.
Rwanda has committed to cutting greenhouse gas emissions by 38% by 2030. Of that target, 3.5 million tonnes of carbon are expected to be reduced through domestic projects and measures, while 4.5 million tons are expected to be cut through international support and partnerships.
The Carbon Markets Africa Summit, a conference focused on carbon markets across the continent, is scheduled to take place in Kigali from October 13-15.
The summit will showcase African projects related to environmental conservation, sustainable land-friendly agriculture, carbon emission reduction, waste-to-value initiatives, and aquatic biodiversity conservation, and it will include exhibitions connecting project developers with investors and carbon credit buyers.
