Singapore has taken its first step into sourcing carbon credits from nature-based projects, signing purchase contracts worth $76.4 million for more than two million tonnes of credits from Ghana, Paraguay and Peru.
The announcement, made jointly by the National Climate Change Secretariat (NCCS) and the Ministry of Trade and Industry (MTI) on 16 September, marks the Republic’s first tranche of carbon credits from overseas nature restoration and protection projects. The credits will offset emissions from 2026 to 2030, contributing to Singapore’s target of using high-quality credits to reduce around 2.51 million tonnes of greenhouse gas emissions annually over this decade.
The projects include protecting forested areas in Peru, restoring degraded tropical forests in Ghana, and improving soil carbon sequestration in Paraguay’s grasslands. Together, the credits amount to 2.175 million tonnes of emissions savings — equivalent to nearly 4% of Singapore’s total greenhouse gas emissions in 2022.
In Peru, two REDD+ initiatives — the Kowen Antami project and Together for Forests — will prevent deforestation in protected forests and smallholder areas threatened by agriculture, road construction and wildfires. In Ghana, Temasek-backed GenZero will oversee a 40-year scheme to restore 51,000 hectares of degraded land in the Kwahu region, using native trees and agroforestry. In Paraguay, US-based Boomitra will introduce sustainable ranching practices across the Pampas grasslands to enhance soil carbon storage.
The projects are being supplied through three firms: GenZero, commodities trader Mercuria Asia Resources, and Boomitra. Mercuria will deliver credits from the Peruvian projects, while Boomitra’s soil carbon credits will be supplied on a scheduled basis from 2026 through 2031.
Singapore has signed bilateral carbon trading agreements with nine countries under Article 6 of the Paris Agreement, which allows credits generated abroad to be counted towards national climate targets. Ghana, Paraguay and Peru are among these, alongside Papua New Guinea, Bhutan, Chile, Rwanda, Thailand and Vietnam.
Officials said the purchase not only helps Singapore meet its 2030 climate goals but also provides financial incentives to protect forests, restore ecosystems and support sustainable livelihoods in partner countries.
