The City of Kigali. The approved Green Taxonomy plan is expected to unlock $11bn in investments.
In a significant step towards strengthening sustainable development, Rwanda’s Cabinet, chaired by President Paul Kagame on 17 April, approved a landmark Green Taxonomy framework. The initiative is a key component of Rwanda’s climate finance strategy and is expected to unlock $11 billion in green investment by 2030.
The Green Taxonomy provides a standardised classification system that defines what qualifies as an environmentally sustainable investment in Rwanda. By offering clear, actionable guidance to public and private sector stakeholders, the framework is designed to attract climate-aligned capital, reduce greenwashing, and support the country’s broader climate ambitions.
Rwanda has committed to a green growth development model as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement. To achieve these goals, the country estimates it will require approximately £11 billion by 2030.
Supporting Climate Resilience and Economic Growth
The taxonomy is a central pillar in Rwanda’s strategy to transition towards a climate-resilient, carbon-neutral economy by 2050. It aims to foster trust among investors, promote a shared understanding of sustainable finance, and channel resources into priority sectors with high climate impact.
In its initial phase, the taxonomy will focus on four critical sectors: agriculture, construction, transport, and energy—areas essential to Rwanda’s climate change mitigation and adaptation goals.
Global Collaboration and Recognition
The development of the Green Taxonomy was led in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, acting on behalf of the German Federal Ministry for Economic Cooperation and Development. Technical contributions were also provided by the Climate Bonds Initiative and Ambire Global.
Rwanda introduced its taxonomy plans on the global stage at COP28 in Dubai, signalling its ambition to become a regional leader in sustainable finance. The initiative garnered strong interest from international investors, development partners, and financial institutions.
Integration with National Climate Finance Strategies
The Green Taxonomy aligns with Rwanda’s broader climate finance initiatives, including the National Climate and Nature Finance Strategy (CNFS) and the Ireme Invest facility. Together, these frameworks aim to enhance climate resilience, support low-emission economic growth, and mobilise both domestic and international capital for sustainable development.
Additional Cabinet Decisions
Beyond the Green Taxonomy, the Cabinet also reviewed key national policies and legislative proposals, including the approval of the Budget Framework Paper for fiscal years 2025/26 to 2027/28 and endorsement of findings from the 7th Integrated Household Living Conditions Survey (EICV7), which tracks poverty and socio-economic conditions.
The cabinet also approved a draft laws on road traffic regulations and accident compensation, Presidential Orders regulating Rwanda Defence Force (RDF) services, decision-making structures, and classified military assets and the establishment of statutes for employees of the Rwanda Atomic Energy Board, as part of Rwanda’s nuclear energy development agenda.
As Rwanda continues to implement forward-looking policies and reforms, the approval of the Green Taxonomy underscores the country’s commitment to climate-smart development and sustainable economic transformation.
