The disclosure was made on October 30, 2025, as BRD officials appeared before the Parliamentary Committee on Land, Agriculture, Livestock, and Environment.
Through the carbon market, developing countries which contribute the least to global carbon emissions enter into agreements with wealthier nations. The latter cover the cost of initiatives that reduce greenhouse gas emissions, allowing them to offset part of their own emissions.
This includes projects such as tree planting, forest conservation, and biodiversity protection that absorb carbon dioxide (CO₂) from the atmosphere. It also covers initiatives that promote the use of renewable energy and other environmentally friendly practices.
In the carbon market, buyers voluntarily purchase carbon credits. One carbon credit (equivalent to one ton of CO₂) is priced between $40 and $80, although prices can vary depending on the type of project and agreements between countries.
The carbon market is one of the financial solutions supporting environmental sustainability, helping Rwanda reach its goal of reducing greenhouse gas emissions by 38% by 2030.
According to Innocent Gatete, head of strategic projects and implementation at BRD, the bank has already registered on the carbon market and is among the first Rwandan institutions benefiting from it.
He explained that the approved carbon credits were based on BRD's projects implemented between 2020 and 2025.
Gatete revealed that BRD has already received an initial payment of $214,000 (about Frw 310 million) and expects to receive over $2 million by December 2025, followed by $16 million in 2026.
'These funds help us expand our projects and improve where we previously faced challenges. They also help address the issue of cooking energy, as we plan to offer subsidies from these funds,' Gatete said.
He added that Rwanda sold its carbon credits at $15 per ton but expects to negotiate higher prices in the future.
Among the BRD projects that generated carbon credits is 'Cana Uhendukiwe', which provided solar energy solutions to 510,847 households and attracted $48.94 million in investment.
Another project, EAQIP 3B (Tekera Aheza), is set to conclude in 2026, with 73% of its budget already utilized. The project distributes improved cookstoves to households, helping reduce carbon emissions.
EAQIP is expected to cut over 600,000 tons of greenhouse gases and generate more than $10 million, which will be reinvested in renewable energy programs, improved cooking technologies, and the production of clean fuels.
BRD continues to encourage the private sector to seek loans from the bank for similar green initiatives. For example, it financed a government project to construct 17,000 cubic meters of biogas storage facilities used for cooking.
Apart from BRD, other institutions may also benefit from the carbon market once their projects are approved.
IGIHE
Source : https://en.igihe.com/news/article/rwanda-to-receive-over-frw-27-5-billion-through-carbon-market
