Singapore’s GenZero, Rwanda tie up on carbon credits

Singaporean investment platform GenZero has signed an agreement with Rwanda and carbon registry Gold Standard to develop Article 6-compliant carbon credit projects in Rwanda.

GenZero, a subsidiary of state-owned investment firm Temasek, signed the agreement with Rwanda Green Fund, the country's financing vehicle for attracting and co-ordinating climate finance through investments, and the Rwanda Environment Management Authority, the country's national authority under Article 6, GenZero said on 19 September.

The projects under the agreement will cover both carbon reduction and removal activities whitelisted by the Rwanda government for Article 6. Rwanda and GenZero will assess the potential for the Article 6 projects, which will "go through a robust due diligence and screening process," said GenZero, before undertaking certification by Gold Standard. Eligible projects must utilise Gold Standard's methodologies and comply with its requirements to achieve certification.

These projects should first meet Rwanda's national carbon market framework, and will subsequently be able to issue credits that come with corresponding adjustments to ensure no double counting.

GenZero will also assess proposals for commercial viability, based on the project's mitigation potential, project maturity and financial returns, it said.

This "partnership between a government, a standard-setting body and an investor reflects the shared commitment of the partners to catalyse international investment in high-integrity Article 6 projects in countries such as Rwanda, while generating sustainable benefits for the local economy, environment and communities," said GenZero.

Singapore and Rwanda signed an agreement in December last year to collaborate on creating carbon credit frameworks and Article 6-compliant credits. Singapore has also signed multiple agreements with other countries such as the Philippines, Ghana and Papua New Guinea, signalling the country's commitment to establishing cross-border trades of carbon credits as part of its decarbonisation efforts.

By Prethika Nair