Rwanda joins coalition of Trade Ministers to phase out fossil fuels

Rwanda has joined a coalition of Trade Ministers on climate that is aimed at promoting trade and investment that foster the diffusion, development, accessibility and uptake of goods, services and technologies that support climate mitigation and adaptation in both developed and developing countries. Speaking at the World Economic Forum, Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, said that the coalition can contribute meaningfully to reducing emissions and boosting resilience. “In Rwanda, we understand the important role of the private sector in addressing climate change and building a sustainable economy based on the principles of green growth and climate resilience. We have an ambitious plan to be carbon-neutral by 2050 and reduce emissions by 38% by the end of this decade. To reach this goal, the private sector as well as national, regional and global trade need to go green,” he said. Shift from fossil fuels to renewable energy. To support this effort, he noted, the Coalition should advocate for a shift from fossil fuels to renewable energy. “Rwanda’s energy mix is already predominantly renewable and we are working hard to reduce diesel, petroleum and peat use. This is where the coalition should start from since how we power and fuel our economies is one of the biggest factors in trade,” Ngabitsinze said. He added that there is a need to end the dumping of obsolete technology and low quality fuels and equipment that are not energy efficient and contribute to the overall global carbon emissions. “A clear example is the massive exportation of used vehicles to developing countries. In Rwanda, our new transport policy offers incentives to importers and manufacturers of e-vehicles. For example, import taxes on electric vehicles and equipment have been waived,” he said. He said there is also a need to promote locally made goods since they have a low carbon footprint. “My ministry is working hard to promote “Made in Rwanda” and the manufacturing base is growing as a result,” he noted. Governments, he added, must also advocate for green procurement policies, which serve as catalysts for low emission purchases of services and goods. “Government agencies are often the biggest consumer and can help to drive down prices across the market. We also need to promote climate friendly cold chains to prevent food loss and reduce associated emissions both from the decomposing food and vehicles. Finally, we need to track progress on low emission trade and ensure we are meeting our targets and the goals of the Paris Agreement,” he said. By partnering with the private sector and setting the example, he added. “we can green global trade and make a substantive contribution to climate action. At COP27, Rwanda launched a new green investment facility for the private sector called Ireme Invest. The facility will invest in quality projects that set a new standard for green growth in Rwanda.” Ireme Invest consists of several financing instruments and two windows working in an integrated approach. A Project Preparation Facility at the Rwanda Green Fund will offer grants to cover early-stage project activities to move projects from feasibility to bankability. In addition, the fund will provide the operational costs for Ireme Invest. A Credit Facility embedded within the Development Bank of Rwanda will offer credit guarantees and concessional loans. Inside the coalition priorities According to the statement released by the coalition, the priorities include fostering international cooperation and collective action to promote trade and trade policies that pursue climate action, identifying ways to ensure the multilateral trading system contributes to the global response to climate change and promotes a positive contribution to the climate agenda, as well as promoting trade and investment that foster uptake of goods, services and technologies that support climate mitigation and adaptation in both developed and developing countries. They also include identifying trade-related strategies supportive of the most vulnerable developing and least developed countries, building alliances and partnerships with climate and finance communities and relevant stakeholders to foster climate action, transitions, and climate-resilient development on the ground.

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Rwanda joins coalition of Trade Ministers to phase out fossil fuels