Singapore Finalizes Agreements for Over 2 Million Metric Tons of Carbon Credits Derived from Natural Sources
Singapore, a small, densely populated island city-state with limited natural resources, has announced that it will contract more than 2 million tonnes of nature-based carbon credits from four projects in Ghana, Peru, and Paraguay. This move is a significant step towards the city-state's goal of achieving net zero emissions by 2050 and meeting its 2030 Nationally Determined Contribution (NDC) targets.
The four projects, Kowen Antami REDD+ in Peru, Together for Forests REDD+ in Peru, Boomitra Grassland Restoration Project in Paraguay, and Kwahu Landscape Restoration Project in Ghana, aim to reduce carbon emissions from deforestation, increase carbon sequestration, and remove carbon emissions through reforestation. These projects have been contracted by Singapore's Ministry of Trade and National Climate Change Secretariat (MTI and NCCS).
The use of these carbon credits under Article 6 of the Paris Agreement is a viable and effective complementary pathway for countries like Singapore to achieve their decarbonisation targets. Article 6 of the Paris Agreement details how countries will authorize carbon credit trading and how registries tracking this trading will operate to enable country-to-country carbon market trading. The international agreement reached at the COP29 UN climate conference in November 2024, on Article 6 of the Paris Agreement, aims to establish high integrity carbon markets.
The MTI and NCCS plan to launch a second RFP for Article 6-compliant carbon credits later this year. The RFP issued in September 2024 aimed at identifying projects with high-quality nature-based solutions carbon credits, ensuring additionality, low leakage risks, permanence, and co-benefits to surrounding communities.
The new carbon removal agreements will help Singapore achieve its 2030 NDC. Singapore has a NDC target to reduce emissions to around 60 million tonnes of CO2e by 2030, after peaking emissions earlier. The carbon credits represent 2,175 million tonnes of emissions reductions from 2026 to 2030.
The selected projects will help preserve or regenerate host countries' natural carbon sinks and biodiversity, safeguard local communities' access to income from sustainable land use, and provide ecosystem benefits such as improving water quality. The total value of these carbon credits is approximately S$76 million (USD$60 million).
However, Singapore's ability to fully decarbonize is still constrained due to its limited natural resources. The city-state continues to invest in renewable energy, electric vehicles, and energy efficiency measures to reduce its carbon footprint and achieve its ambitious climate goals.
This announcement comes as a positive step forward in Singapore's efforts to combat climate change and contribute to the global fight against climate change. The use of carbon credits under Article 6 of the Paris Agreement provides a way for Singapore to meet its climate goals and leverage international partnerships to achieve its decarbonisation targets.
Read also:
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Delaware's contentious offshore wind project faces uncertainty as the Trump administration reverses course on clean energy initiatives.
- Green Party leader Graf advocates for the shutdown of wood-burning power plants
