The government's plan to discourage illegal logging in Nyungwe National Park is set to tap into the carbon market as a way to incentivize thousands of farmers to plant and protect agroforestry trees in their community for a period of 20 years, The New Times has learnt. ALSO READ: Can Rwanda make the best out of carbon markets? A carbon market is a system where people or companies can buy and sell what is known as carbon credits, which represent a reduction in greenhouse gases through projects like planting and conserving trees to mitigate climate change. One carbon credit is equivalent to one tonne of greenhouse gases reduced through such projects. The carbon market allows governments, companies, and other entities to finance carbon-cutting projects in other countries and count the avoided emissions toward their own climate targets. ALSO READ: Rwanda to plant 63 million indigenous trees for carbon market The 20-year Nyungwe Agroforestry Project (NAP), which is applying for participation in the carbon market, aims to positively impact 13,000 hectares of farmland and involve 23,000 smallholder farmers along the eastern border of Nyungwe National Park in Nyamagabe and Nyaruguru districts. The agroforestry trees will promote and improve good agricultural practices, reduce soil erosion, provide forest products such as timber and fuelwood at the farm level, improve soil fertility, and increase income opportunities for implementing communities. The Rwf5 billion initiative seeks to improve farmers' resilience by rehabilitating ecosystem services and increasing their capacity to adapt to climate change. In addition to controlling soil erosion, the project will also improve nutrition through increased consumption of fruits in households,” said Habimana Thaddée, Nyamagabe District Vice Mayor in charge of economic development. “It will also generate income from tree harvesting and discourage illegal logging in Nyungwe National Park, as the trees that were previously cut in the forest will now be available on their farms. Nyungwe is one of the oldest rainforests in Africa, with more than 1,000 sqaure kilometres of dense forests, bamboo-covered slopes, grasslands, and wetlands, making it the largest expanse of forest remaining in Rwanda. The national park feeds two of the world’s longest rivers, the Congo and the Nile, and provides 70 percent of the country’s freshwater. A report on the State of the Wildlife Economy in Rwanda shows that the value of Nyungwe National Park is estimated at around $4.8 billion. Seeking registration under the Gold Standard According to the developers of the Nyungwe Agroforestry Project, The project to protect Nyungwe Park will contribute toward climate change mitigation through planting trees that store carbon. The project is applying to be registered under the Gold Standard to receive certified carbon credits for the emission reductions resulting from the project activities. Gold Standard sets the standard for climate and sustainable development interventions to quantify, certify and maximise their impact. ALSO READ: Carbon market: A look at Rwanda’s probable prices The project is being implemented by the Rwandan government in partnership with Initiative pour la Promotion de la Famille et du Genre (IPFG) and Livelihoods Funds, which support the efforts of agricultural and rural communities to restore natural ecosystems. Concorde Nsengumuremyi, the Director General of the Rwanda Forestry Authority, said that if the agrofprestry trees are well maintained, they will increase Rwanda's potential in the carbon market. The trees should be well managed from planting to harvest. The longer a tree lasts, say 50 years, and the larger its size in terms of height and width, the more it reduces carbon emissions and attracts valuable carbon credits. With the carbon market, farmers can earn money without cutting down their forests, Nsengumuremyi explained. He said every soil should have tree species suitable for it to ensure higher survival rates. ALSO READ: Rwanda allocates over 7,000 hectares of state forests to investors Nsengumuremyi added that investors are looking to tap into carbon market opportunities in Rwanda. They also seek to work with forest farmers' cooperatives by complying with the rules set by the government, he said. The Rwanda Forestry Authority (RFA) has placed forests covering approximately 1,000 hectares, managed by farmers’ cooperatives in four districts, on the carbon market. This serves as an incentive for farmers' efforts in conserving the forests. Farmers could receive financial incentives based on the amount of carbon emissions their forests have reduced and sold on the carbon market each year. Under the 2015 Paris Agreement to limit global warming to 1.5 degrees Celsius, countries and companies can transfer carbon credits earned from the reduction of greenhouse gas emissions to support one or more countries in meeting climate targets. The new development to monetize forests follows Rwanda’s launch of the Carbon Market Framework during the 28th UN Climate Change Conference (COP28) that took place in Dubai, UAE in late 2023. With more than 30 per cent of the country's surface covered by forests, Rwanda seeks to reduce 38 percent of greenhouse gas emissions by 2030. ALSO READ: Rwanda’s carbon market framework launch, more events at COP28 Rwanda expects to sell 7.5 million tonnes of carbon dioxide equivalent – carbon credits – estimating that they could generate $337 million (approx. Rwf420 billion). Given that the minimum price is $30, Rwanda could sell $45 per carbon credit (one tonne of carbon dioxide equivalent), potentially resulting in $337 million from 7.5 million tonnes of carbon dioxide equivalent.
