Rwanda’s Green Taxonomy
Rwanda’s Green Taxonomy is a framework that aims to define sustainability criteria, foster shared understanding and trust on what constitutes a green investment, as well as prevent greenwashing. Rwanda’s green taxonomy working paper was developed in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, which provided support on behalf of the German Federal Ministry for Economic Cooperation and Development. Technical expertise was provided by the Climate Bonds Initiative and Ambire Global.
What is Rwanda's Green Taxonomy?
Rwanda is pursuing a green growth approach for development and requires an estimated USD 11 billion to achieve the goals outlined in the country’s 2030 Climate Action Plan, known as National Determined Contributions (NDCs) under the Paris Agreement. Attracting this level of investment, from both the public and private sectors, requires a clear definition of "sustainable."
To enable this and promote green investment, Rwanda is developing a Green Taxonomy, a policy instrument that provides clear, relevant and actionable guidance for the market. The framework aims to define sustainability criteria, foster a common understanding, build trust, and prevent greenwashing. In doing so, it is expected to unlock substantial green investments, contributing to Rwanda's vision of being a climate-resilient and carbon-neutral economy by 2050.
What is it aiming to achieve?
Rwanda’s Green Taxonomy will lay a strong foundation for the country‘s green transformation, the creation of new industries and effort to position Rwanda as the sustainable finance hub of East Africa. Once completed, it will be the second taxonomy in Africa, following South Africa.
Rwanda’s Green Taxonomy is being developed in phases. The first phase includes the four key economic sectors of agriculture, construction, transport and energy that significantly contribute to climate change mitigation or climate change adaptation.
Who will use Rwanda's Green Taxonomy and how?
Rwanda's Green Taxonomy will be used by different stakeholders in diverse ways.
Possible application venues for the taxonomy include:
