Rwanda has officially launched a road map for its Green Taxonomy, becoming the second country in Africa to adopt such a policy tool. A Green Taxonomy is a classification system that defines which economic activities and assets are considered “green” or sustainable, guiding investments toward environmentally sustainable projects and ensuring transparency. ALSO READ: Unpacking Rwanda’s recently approved Green Taxonomy The launch which took place on September 11, at Marriott Hotel brought together financial institutions, regulators, development partners, and green finance experts. “This is yet another milestone in Rwanda's journey to positioning as a sustainable finance hub and to building a financial ecosystem that is resilient but also aligned with the country’s climate ambitions,” said Kigali International Financial Centre (KIFC) CEO Hortense Mudenge. She explained that taxonomies are now widely recognised as an important tool for linking finance with climate action, since they direct investments toward green and climate-resilient projects while setting a common standard for what qualifies as sustainable. The taxonomy was the result of a collaborative process, approved by the cabinet on April 17 after extensive consultations with stakeholders across public and private sectors, Mudenge said. ALSO READ: Rwandan minister calls for climate finance reform at Africa summit According to Rwanda Green Fund CEO Teddy Mugabo, the taxonomy provides a clear definition of green aligned with international standards, giving investors confidence to fund environmentally sustainable projects. “Now that we have this classification and standardisation, project developers whether public or private sector can use it as a guideline. For the fund, it means we can disburse funding faster because we are getting a better pipeline of projects.” She emphasised Rwanda’s broader climate ambition, noting that the taxonomy will help the country achieve its Vision 2050 goal of becoming a carbon-neutral economy. She added, “With this tool breaking down each sector: agriculture, construction, energy, and transport, SMEs now have a starting point. If they want funding from the Green Fund or a loan from BRD, they must ensure their projects align with the taxonomy. This will help them access green financing faster and better.” Additionally, she explained that the taxonomy will help prevent greenwashing by providing a clear standard to verify that projects claiming to be green genuinely deliver environmental benefits. Herbert Asiimwe, Head of Financial Sector Development at the Ministry of Finance, explained its impact on citizens. ALSO READ: Rwanda woos investors to tap into Rwf3tn green growth agenda “The Green Taxonomy has mobilised sustainable green finance to support farmers and other members of the public. These funds are being channelled through financial institutions, such as SACCOs, to reach farmers and small businesses,” he said. He added, “By building the capacity of farmers and small businesses to understand the taxonomy, they can design projects and access green loans at subsidised rates. He gave an example: a livestock farmer who wants to install a biogas system can approach their SACCO for a green loan aligned with the taxonomy, enabling them to access funding at a lower cost. Asiimwe also stressed the taxonomy’s flexibility, noting that additional sectors contributing to environmental sustainability and national development can be included over time.
