Rwanda is set to unveil its carbon market scheme at the 28th UN Climate Summit, known as COP28, scheduled to take place from November 30 to December 12, at Expo City Dubai, The NewTimes has learnt.
Herman Hakuzimana, the Climate Change Programme Manager at the Rwanda Environment Management Authority (REMA) says Rwanda has a lot to offer on the carbon market.
The carbon market scheme is a groundbreaking initiative that allows climate polluters to finance emissions-reduction projects in other nations or entities, thereby aiding in the removal or reduction of greenhouse gas emissions. Importantly, these reductions can be counted toward the polluters' own climate targets while they continue to emit greenhouse gases.
Tradable carbon credits, in this context, equate to one tonne of carbon dioxide or an equivalent quantity of a different greenhouse gas reduced, sequestered, or avoided.
Recently, the cabinet received a comprehensive briefing on the country's carbon emission trading framework, which aligns with Article 6 of the Paris Agreement.
Hakuzimana says the carbon market scheme, which will be launched during COP28, outlines the procedures for interested investors to purchase carbon credits in Rwanda and that this will also demonstrate the diverse projects the country can offer in the carbon market, including innovative cooking technologies aimed at reducing pressure on our forests.
Investment opportunities span a wide range of sectors, including industries, agriculture, indigenous trees, and initiatives focused on reducing emissions in the transportation sector, including the promotion of electric vehicles and renewable energy projects.
Hakuzimana emphasized, "The carbon market framework serves as a tool to attract investors to Rwanda's carbon market, and these projects are all part of Rwanda's 10-year climate action plan, which requires $11 billion for implementation through 2030."Rwanda has committed to reducing its greenhouse gas emissions by 38 percent by 2030. To achieve this target, $4.155 billion will be sourced domestically, contributing to a 16 percent reduction in emissions, while $6.885 billion will come from external financing, contributing to a 22 percent emissions reduction.
Seeking Climate Finance at COP28
In addition to the carbon trading mechanism, Rwanda is actively seeking climate finance from various sources. Hakuzimana noted, "During COP27, we advocated for increased climate finance to enhance our ability to adapt and build resilience against climate change impacts. Unfortunately, the outcomes fell short of expectations, with the promised doubling of climate adaptation finance not materializing."
He added that developed countries pledged $100 billion annually to developing nations, but this target remains unmet. "We requested a transparent mechanism for providing this pledged funding, which was not established. Therefore, negotiations continue at COP28, with discussions on commitments that could replace this pledge starting in 2025," he explained.
Hakuzimana also highlighted the approval of the 'Loss and Damage Compensation Fund' during COP27 to aid vulnerable countries affected by climate change, but he noted that the fund has yet to become operational. He stressed the importance of defining the fund's operational procedures and sources of finance during COP28.
Experts agree that the availability and accessibility of funds within this new fund must be distinct from other climate funds.
Expectations of Rwandan Civil Society Organizations (CSOs) at COP28
Faustin Vuningoma, the Coordinator at Rwanda Climate Change and Development Network (RCCDN), expressed the need for COP28 to prioritize African concerns, adding that COP27 did not meet Africa's expectations, despite addressing financing for loss and damage for the first time.
Vuningoma emphasized the importance of involving ministers from African nations in negotiations to amplify their voices. He also cautioned against the potential shortcomings of carbon market schemes, highlighting the need for concrete steps to reduce carbon emissions, invest in renewable energy infrastructure, and prioritize actions for climate adaptation.
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Abias Maniragaba, an environmental expert, underscored the climate financing gap as a significant challenge for African countries in adapting to climate change and its associated impacts. He called on stakeholders to craft clear messages and demands that hold those responsible for climate issues accountable, especially at COP28, which has been labeled the "Accountability COP."
One of the key issues at COP28 will be the global goal on adaptation, with an emphasis on ensuring that developing countries have access to the funding needed for adaptation. The idea of doubling adaptation funding remains a top priority, and COP28 is expected to establish a mechanism to achieve this goal.
