Rwanda's national carbon market framework details the administrative and institutional framework for Article 6 implementation, as well as the guiding principles to facilitate Rwanda's participation in carbon markets both within and outside Article 6 (6.2 6.4) and in non-market approaches under Article 6.8.
Administrative and Institutional Framework
The institutional framework consists of an Extended Governing Board (Oversight Body) and an Article 6 Unit.
1) Oversight Body
The Oversight Body provides long-term oversight of adopting necessary legislation and institutional mandates for the support of Article 6 activities. Its responsibilities include:
- Coordination among multiple ministries.
- Advising on Article 6 participation strategy.
- Monitoring of the implementation of the framework.
- Coordination with other climate and sectoral initiatives.
2) Article 6 Unit
The Article 6 Unit, also known as the carbon market office, is tasked with defining and implementing the Article 6 Framework. It is responsible for:
- Operationalizing activities;
- Managing the share of proceeds;
- Providing technical support;
- Overseeing transparency and accounting requirements, including recording and reporting activities and managing corresponding adjustments;
- Developing and implementing procedures to facilitate the country's participation in the framework, which includes:
- Identifying eligible mitigation activities;
- Establishing authorisation and approval mechanisms;
- Verifying and issuing Internationally Transferred Mitigation Outcomes (ITMOs);
- Applying corresponding adjustments;
- Integrating reporting and accounting into the national system for reporting to the United Nations Framework Convention on Climate Change (UNFCCC).
3) Designated National Authority
The Rwanda Environment Management Authority (REMA), previously the Designated National Authority (DNA) for the CDM has been designated as the focal point for Article 6.4.
Policy Framework and Guiding Principles
Rwanda's guidelines for participation are in line with provisions of the Paris Agreement, and come with additional specifications for Rwanda's case. The framework mentions that the Government of Rwanda approves Article 6.2 activities and Article 6.4 projects based on national interest, and activities seeking recognition as non-market approaches require approval, and offset projects in the voluntary market need a letter of no-objection. Voluntary market projects labelled as Article 6 will imply the contribution of a share of proceeds (which can be thought of as a tax on market mechanisms) for the administration of carbon markets provision. There will also be special attention paid to forestry sector projects under Article 6, which will have to adhere to Law n47bis/2013 on the sale of forestry services.
Share of Proceeds Fees
A share of proceeds will apply for the approval of Article 6 activities, and the issuance of a letter of no objection for voluntary market projects. However, the level of share of proceeds is yet to be determined.
