The cabinet was on Monday, September 11 briefed on the country's carbon emission trading framework in accordance with Article 6 of the Paris Agreement.
The cabinet meeting, presided over by President Paul Kagame at Village Urugwiro, explored the framework's potential to harness the carbon market, a mechanism allowing climate polluters to finance emissions-reduction projects in other nations.
They can then count these reductions toward their own climate targets while continuing to emit greenhouse gases.
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In this framework, a carbon credit signifies the removal of one tonne of carbon dioxide from the atmosphere. Trading these credits through carbon markets serves as an incentive for climate action.
Credits are earned through actions such as reducing greenhouse gases, transitioning to renewable energy, or preserving carbon stores in natural ecosystems.
Implementing Article 6 of the Paris Agreement offers an opportunity to achieve national emission reduction targets more efficiently. It facilitates voluntary cooperation among nations to attain ambitious reduction goals by exchanging carbon credits.
The Paris Agreement, established during the COP21 summit in Paris in 2015, serves as an international framework for reducing greenhouse gas emissions beyond 2020.
A significant outcome of the 26th UN Climate Summit (COP26) in Glasgow was the approval of Article 6, the rulebook governing carbon markets under the Paris Agreement.
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During last week's Clean Air Day celebration, Juliet Kabera, Director General of the Rwanda Environment Management Authority (REMA), highlighted Rwanda's carbon market framework, designed to incentivize the reduction of greenhouse gas emissions associated with traditional cooking methods.
At the Smart City Investment Summit held in Kigali from September 6 to 8, Adam Bradford, Director of CO2 Capital's Africa project, revealed a noteworthy development in the world of carbon markets. CO2 Capital, supported by its parent holding company, CSG, is exploring carbon market opportunities in Rwanda, specializing in scaling verified carbon credit projects via forest restoration and agroforestry using blockchain technology.
Rwanda's ambition to access the carbon market includes a plan to plant more trees, with 40 percent being indigenous species, according to Concorde Nsengumuremyi, the Director General of Rwanda Forestry Authority.