Subject category:
Production and Operations Management
Published by:
Singapore Management University
Version: 2024-11-05
Length: 18 pages
Data source: Field research
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Abstract
As a primary means of transport, motorcycle taxis were a significant contributor to Rwanda's air pollution. Lee Wee Chia and his friends set up Rwanda Electric Motors Limited (REM Limited) to market electric motorcycles (e-Motos) to reduce pollution. In addition to environmental sustainability, REM's twin-battery-powered e-Motos and strategic location of swap stations effectively addressed riders' range anxiety typically associated with electric vehicles. Moreover, the upfront cost of the e-Motos and the rental cost of batteries were also competitive. This ensured cost-savings and convenience for riders. The Rwandan government had sworn to reduce greenhouse gas emissions as part of its efforts to mitigate the impact of climate change. It announced plans to phase out internal combustion engine (ICE) motorcycle taxis to address climate change. So, REM Limited also offered retrofitting services to convert ICE motorcycles to e-Motos. REM's potential to expand beyond Rwanda was promising. However, batteries were expensive, and Chia needed funds to expand the business. To make the proposal attractive to sustainability investors, Chia had to calculate the carbon credits REM Limited could generate by selling e-Motos and converting ICE motorcycles to e-Motos. Also, Chia had to demonstrate the additionality of emissions reduction and explore avenues to monetise the carbon credits in the carbon market.
Time period
The events covered by this case took place in 2024.Geographical setting
Country:
Rwanda
Subject category:
Production and Operations Management
Published by:
Singapore Management University
Version: 2024-11-05
Length: 23 pages
Data source: Field research
Subject category:
Production and Operations Management
Published by:
Singapore Management University
Format:
.xlsx
Data source: Field research
About
Abstract
As a primary means of transport, motorcycle taxis were a significant contributor to Rwanda's air pollution. Lee Wee Chia and his friends set up Rwanda Electric Motors Limited (REM Limited) to market electric motorcycles (e-Motos) to reduce pollution. In addition to environmental sustainability, REM's twin-battery-powered e-Motos and strategic location of swap stations effectively addressed riders' range anxiety typically associated with electric vehicles. Moreover, the upfront cost of the e-Motos and the rental cost of batteries were also competitive. This ensured cost-savings and convenience for riders. The Rwandan government had sworn to reduce greenhouse gas emissions as part of its efforts to mitigate the impact of climate change. It announced plans to phase out internal combustion engine (ICE) motorcycle taxis to address climate change. So, REM Limited also offered retrofitting services to convert ICE motorcycles to e-Motos. REM's potential to expand beyond Rwanda was promising. However, batteries were expensive, and Chia needed funds to expand the business. To make the proposal attractive to sustainability investors, Chia had to calculate the carbon credits REM Limited could generate by selling e-Motos and converting ICE motorcycles to e-Motos. Also, Chia had to demonstrate the additionality of emissions reduction and explore avenues to monetise the carbon credits in the carbon market.
Settings
Time period
The events covered by this case took place in 2024.Geographical setting
Country:
Rwanda
Related
Subject category:
Production and Operations Management
Published by:
Singapore Management University
Version: 2024-11-05
Length: 23 pages
Data source: Field research
Subject category:
Production and Operations Management
Published by:
Singapore Management University
Format:
.xlsx
Data source: Field research