KEXIM Bank, KRIC, GGGI HQ Delegation Visit in Rwanda

Enhancing Institutional Capacities for Facilitating the Use of ITMOs Through Electric Mobility

Kigali, 17 April 2023 The Government of Rwanda (GoR) has prioritized the transition to e-mobility using a combination of incentives and policies to promote the uptake of Electric Vehicles (EVs). The transfer of Internationally Transferred Mitigation Outcomes (ITMOs) has been identified as a potential source of climate finance, and the GoR is keen to mobilize climate finance from ITMOs focusing on transport sector. Sustainable transport has been a focus area for Global Green Growth Institute (GGGI) and to date GGGI has actively supported e-mobility implementation. In this line, GGGI in collaboration with Korea Research Institute on Climate Change (KRIC), is implementing a Knowledge Sharing Program (KSP) project funded by Korea Ministry of Economy and Finance and the Export-Import Bank of Korea (KEXIM Bank), to improve institutional capacity of e-mobility and ITMOs through the knowledge exchange of e-mobility technologies and regulatory framework for ITMOs with the Republic of Korea.

The Korean delegation visit to Rwanda, hosted by Ministry of Infrastructure (MININFRA), took place from 17th to 21st April 2023. Delegates were from the KEXIM Bank, Korea Research Institute on Climate Change (KRIC), and GGGI Headquarters. The overall objective of the visit was to explore cooperation potential on ITMO transactions under Article 6, between Rwanda and Korea by gaining an information and understanding of e-mobility profile and ITMO readiness in Rwanda.

 Officially launch the KSP policy consultation project “Enhancing Institutional Capacities for Facilitating the Use of ITMO Through Electric Mobility”
 Present KSP project concept to Rwandan government stakeholders in transport sector and international carbon market
 Explore institutional capacity needs, concerns, and challenges for engaging in carbon transactions under Article 6
 Engage with key government institutions and stakeholders in Rwanda to figure out the key priorities, policy framework, and gaps in transport sector
 Build bilateral agreement between Rwanda and Korea for potential MoU signing and future collaboration

The visit was designed to facilitate conversations for mutual understanding between the Korea delegation and Rwandan stakeholders in transport sector and international carbon markets. The approach involved various meetings with government authorities and private sector players;
interactive discussions provided the window of opportunities to present the KSP project to Rwandan stakeholders and to collect information from potential partners. During the meetings, both Rwanda and Korea showed a keen interest in ITMO cooperation under Article 6.

KEXIM Bank, KRIC, and GGGI HQ team had productive discussions in  multiple meetings with MININFRA, REMA, FONERWA, BRD, MINECOFIN, and private sector. Both Rwanda and Korea expressed a keen interest in ITMO cooperation under Article 6. Though the first visit was focusing on e-mobility, there are possibilities of expand the sectors of cooperation in the future. The KSP project will continue until the end of September 2023, and the main tasks will be diagnostic analysis, case studies, policy and strategy design, capacity building workshop in Korea, and the publication of the final report. Upcoming visit to Korea for capacity building workshop and knowledge exchange is planned in June 2023. All the tasks need close collaboration between Rwanda and Korea, therefore, the KSP team and GoR will continue the communication.
Starting with the KSP project, Rwanda and Korea will continue the bilateral partnership to the actual ITMO transactions in the future. In this line, the consortium will seek for the blended finance opportunities for scaling up the initiatives on e-mobility.

To conclude the visit ,an  Aide-Mémoire was prepared and officially signed with a bilateral agreement between MININFRA and KEXIM Bank. The Aide-Mémoire reflected the discussions held between the Korea delegation and MININFRA, concerning how the involved
parties should collaborate to implement and manage the KSP project. The contents of the Aide-Mémoire include activities, output, and outcome of the KSP project, with critical activities included such as:
 Activity 1: Diagnostic analysis on the current status of Rwanda’s ITMO
 Activity 2: Case study of Korea’s successful experience in international ITMO cooperation
 Activity 3: Policy recommendations: The implications and applications of the Korean experience
 Activity 4: Capacity building and knowledge exchange workshop and interim seminarian Korea
 Activity 5: Final Dissemination Seminar in Rwanda

Moving forward  a delegation of 8 representatives from Rwanda  will travel to Korea in June to participate in capacity building and knowledge exchange workshop in Korea and possibly sign an MOU between the KEXIM Bank and REMA . A total of 8 people from
related institutions include MININFRA, REMA, MoE, BRD, MINECOFIN, and GGGI Rwanda team are expected to be part of the Rwanda delegation to visit Korea.