• Singapore partners with Africa to offset emissions, meet climate goals
• Six-country deals enable carbon credit trade under Paris Agreement
• $59M in credits bought; projects include forest restoration, efficiency

Facing severe space constraints that limit its ability to generate its own carbon credits, Singapore is turning to partnerships with African nations to advance its carbon neutrality goals and establish itself as a regional hub for emissions offsetting.

The city-state produced nearly 49 million metric tons of CO₂ in 2023 and aims to cap emissions at 45 to 50 million tons by 2035. To meet this target, Singapore is leveraging African projects focused on reforestation and energy efficiency.

Singapore has already signed agreements with six African countries, including Rwanda and Ghana, to develop carbon credit projects. This strategy is designed to meet the nation's own carbon neutrality commitments and supply a market for Asian companies facing rising environmental obligations. In Ghana, approximately 30 initiatives are under review, including the restoration of degraded forests in cocoa-growing regions. This month, Singapore announced a $59 million purchase of credits from projects, including some in Africa.

The legal framework for these partnerships is based on Article 6.2 of the Paris Agreement, which allows for the international exchange of carbon credits. For Singapore, this provides a vital way to secure a resource essential to its climate trajectory and position itself as a key intermediary for Asian businesses.

For African nations, these agreements offer a source of climate finance. However, the long-term viability of these partnerships depends on the credibility and traceability of the generated credits, as the sector lacks optimal regulatory frameworks in many parts of the continent.

Olivier de Souza