European Union Energy Initiative (on behalf of: Ministry of Infrastructure, Ministry of Environment and Natural Resources)   |   2009
Type: Research Report
Topic: Fuels, Market Assessments
Country: Rwanda
In this Volume 4 an investment package of US$ 120 million is presented for the implementation of the proposed biomass energy strategy to render the supply of wood and charcoal sustainable. The package includes four parallel programs dealing with energy conservation, rehabilitation of plantations, fuel substitution, and capacity building. Some regulatory changes are required to change the current rules that govern the cutting of wood for energy purposes: the law and decrees consider that wood comes from natural forests whereas today most if not all wood comes from man-made plantations. This makes firewood and charcoal just another product from the farm or the plantation and the legislation should take this into account. In addition, the applied taxation system on woodfuels is no longer adequate and should be improved. A different system is proposed whereby benefits are offered to stakeholders as long as they improve the efficiency of their operations. Without such changes it does not make much sense to implement the investment package.