As Rwanda is set to launch a carbon market framework at the 28th UN Climate Conference in December this year, players in the carbon market believe that the country could have"high-quality carbon credits" that could attract better prices.
He said that once Rwanda launches the carbon market framework, they will assess their offer to be able to start issuing credits if they get a permit from the government. One carbon credit has a monetary value on the compliance and voluntary carbon markets of $40 to $80, on average.The World Bank, which compiles a yearly report on carbon credit pricing in the carbon marketplace, also noted that most prices of carbon credits are below the $40-80 per metric tonne of carbon dioxide emitted needed to keep global warming within a two-point degree, as provided by the Paris Agreement.
World Bank says that higher prices are required to achieve global emission targets. There are two main ways of determining the prices of carbon credits namely external and internal carbon pricing. The first option works for organisations that set internal carbon credit prices to guide their investment decisions.On the other hand, external pricing is fixed primarily by the market forces of supply and demand.
He said the money from carbon credits can be reinvested in planting new forests, for instance, or their management."Forests can create the highest quality of credits." "There are a lot of reasons for that. One is the political drive of the government. Secondly, it is the whole policy of the country in environmental protection. Thirdly, it is the quality of the trees that you have here," adding that special measures to protect forests are also very promising.There was a problem processing your submission. Please try again later.