The idea is to take advantage of the trading scheme of credits, which are obtained by reducing emissions, to sell them to public or private entities unable to meet the reduction requirements.
These mechanisms support the transfer of emissions between countries and at the same time encourage the private sector to invest in climate-friendly solutions, explained Faustin Munyazikwiye, deputy director general of the Rwanda Environmental Management Authority.
Rwandan authorities intend to use these funds to increase the country’s forest cover – currently 30.4 percent – and grow the economy sustainably.
Carbon credit trading is regulated globally through the United Nations Framework Convention on Climate Change and has its origins in 1997, when the Kyoto Protocol established carbon as a tradable commodity.
Africa emits less than three percent of global gases into the atmosphere, yet countries such as Rwanda aim to reduce their emissions by 38 percent by 2030.