The Development Bank of Rwanda (BRD) has revealed that Rwanda is set to earn more than $19 million, roughly Rwf 27.5 billion, from the international carbon market by 2026, with the funds earmarked for sustainable energy and environmental protection programs.
The announcement was made on October 30, 2025, during a briefing with the Parliamentary Committee on Land, Agriculture, Livestock, and Environment.
Under the carbon market system, developing countries with low greenhouse gas emissions enter agreements with richer, high-emission countries. These wealthier nations pay for certified initiatives that reduce carbon dioxide (CO₂), allowing them to offset part of their emissions. Projects supported through the scheme include tree planting, clean cooking solutions, forest conservation, renewable energy, and biodiversity protection.
One carbon credit is equal to one ton of reduced CO₂ and typically trades internationally for between $40 and $80, though Rwanda currently sells its credits at a lower rate of $15 per ton. Officials say the country expects higher prices in future deals as Rwanda strengthens its project portfolio.
Rwanda has committed to cutting emissions by 38% by 2030, and BRD says carbon finance will play a crucial role in achieving that target. Gatete Innocent, BRD’s Project Implementation Manager, told lawmakers that Rwanda has already begun receiving payments, with $214,000 (Rwf 310 million) disbursed so far. More than $2 million is expected in December 2025, followed by nearly $16 million in 2026.
“These funds help us scale up our initiatives and address gaps where needed,” Gatete said. “This includes expanding clean cooking and renewable energy subsidies.”
BRD has registered carbon credits from green projects implemented between 2020 and 2025. Among the flagship initiatives is “Cana Uhendukiwe,” which has enabled more than 510,000 households to access solar power through an investment of $48.94 million.
The EAQIP 3B (Tekera Aheza) project, set for completion in 2026, supports the distribution of fuel-efficient cooking stoves to reduce firewood consumption and indoor pollution. It is expected to prevent more than 600,000 tons of CO₂ emissions and generate over $10 million from carbon credit sales. Reinvested revenues will continue strengthening renewable energy, sustainable fuel production, and improved cookstove programs.
So far, BRD has also encouraged private-sector participation by offering green loans, including financing for gas storage infrastructure supporting clean cooking solutions.
Officials say BRD is one of the first Rwandan institutions to tap into the carbon market, but more agencies are expected to follow once their environmental projects meet verification standards.
