GenZero, Singapore’s state-backed low-carbon investment firm, has partnered with Rwanda to develop carbon credit projects aimed at offsetting emissions. The collaboration involves GenZero, the Rwanda Green Fund, and the carbon certification body Gold Standard, focusing on maintaining project integrity under Article 6 of the Paris Agreement.
While countries like Australia and Britain have moved away from using carbon offsets to meet net-zero targets, Singapore continues to rely on them due to limited space for large-scale renewable energy projects. Article 6 of the Paris Agreement provides a mechanism for countries to meet their climate goals by investing in low-carbon initiatives in other nations.
“We will review potential projects with the Rwandan Green Fund and the Rwanda Environment Management Authority over the coming months, to determine their eligibility and suitability to be included in the collaboration,” said Frederick Teo, CEO of GenZero, a subsidiary of Temasek, Singapore’s state investment fund. “Projects can be nature-based solutions such as nature restoration, or technology-based solutions such as improved waste management.”
The collaboration is part of Singapore’s broader strategy to utilize international carbon markets to meet its climate goals. Singapore has already signed agreements with several countries, including Laos, the Philippines, Ghana, and Papua New Guinea, to facilitate carbon credit transactions under Article 6.
Additionally, Singapore has completed negotiations on pacts with Bhutan, Paraguay, and Vietnam, according to Ravi Menon, Singapore’s Ambassador for Climate Action. Under these agreements, Singaporean companies can offset up to 5% of their taxable carbon emissions by purchasing carbon credits.