SINGAPORE, Sept 19 (Askume) – Singapore’s state-backed low-carbon investment firm GenZero said on Thursday it would collaborate with Rwanda on a project to generate carbon credits to offset emissions.
Countries such as Australia and the UK have been widely criticised for refusing to use offsets to meet their net zero targets , but Singapore relies on them because it has scope for large-scale renewable energy projects.
The agreement, signed by GenZero, the Rwanda Green Fund and carbon certification body Gold Standard, commits to ensuring the integrity of the scheme,Comply with Article 6 of the Paris Agreement on Climate Change।
This section explains how countries can achieve their climate goals by investing in low-carbon projects in other countries through bilateral arrangements or a yet-to-be finalised UN trading scheme .
Frederick Teo, chief executive of GenZero, a unit of state investment fund Temasek, said: “We will be reviewing potential projects with the Rwanda Green Fund and the Rwanda Environment Authority in the coming months to determine whether they are eligible and suitable to participate in the collaboration. “It can be done.
“Projects can be nature-based solutions, such as nature restoration, or technology-based solutions, such as better waste management.”
While negotiations on Article 6 are still ongoing, Singapore has signed Memoranda of Understanding with Laos and the Philippines, and legally binding “Implementation Agreements” with Ghana and Papua New Guinea.
Negotiations for agreements with Bhutan, Paraguay and Vietnam have also been completed, Singapore’s climate action ambassador Ravi Menon told a conference last week.
Singapore companies can purchase credits through Section 6 transactions to offset up to 5% of their taxable carbon emissions.
Article 6 will be given priority during the COP29 climate talks in Azerbaijan in November, after negotiations on a final draft failed in Dubai last year.
All sides are struggling to agree on how a UN-run carbon market would work, with some worried that bilateral agreements could infringe on national sovereignty.
