The restoration of Kwahu tropical forest landscape in Ghana is led by GenZero. (Photo: GenZero)
Singapore announced on Sept. 16 that it will invest SGD 76.4 million (about USD 59.8 million) to procure its first batch of cross-border, nature-based carbon credits, enough to offset nearly 4% of the nation’s emissions.
On the same day, Singapore also signed a carbon credit agreement with Vietnam, expanding its list of Article 6 trading partners under the Paris Agreement to nine countries.
4 projects selected with focus on forest, earth
The credits will come from four projects in Peru, Paraguay, and Ghana, covering two REDD+ initiatives, one grassland restoration, and one landscape restoration. Together, they are expected to offset 2.175 million tonnes of CO₂e between 2026 and 2030.
In Peru, two REDD+ projects by commodity trader Mercuria Asia Resource will protect the Yanachaga Chemillén National Park, the San Matías–San Carlos Protection Forest, and forest reserves in the Madre de Dios region.
In Paraguay, US-based developer Boomitra will restore grasslands in the Pampas region, promoting sustainable ranching and soil carbon storage.
In Ghana, Singapore-based GenZero will restore 51,000 hectares of forest in Kwahu through agroforestry and mixed planting systems.
The National Climate Change Secretariat (NCCS) and the Ministry of Trade and Industry (MTI) said the projects were chosen based on quality, developer track record, and cost competitiveness, though actual credit prices were not disclosed. Each project also includes co-benefits for local communities and measures to reduce leakage risks.
Boomitra’s grassland project in Paraguay will supply carbon credits to Singapore. (Photo: Boomitra)
Vietnam joins as Singapore’s 9th carbon trading partner
Under Article 6 of the Paris Agreement, countries may use carbon credit trading to meet their NDC targets. Singapore expects to offset 2.51 million tons of emissions annually through such credits and has pledged to direct 5% of investments toward sustainable development and climate adaptation in partner countries. The projects in Peru, Paraguay, and Ghana mark concrete outcomes of these agreements.
On the same day it announced its first nature-based carbon credit procurement, Singapore also expanded its list of trading partners by signing an agreement with Vietnam. The deal will allow the Singapore government and companies liable for carbon tax to purchase Vietnamese credits for offsetting purposes.
Prior to this, Singapore had signed similar agreements with Bhutan, Chile, Papua New Guinea, Rwanda, Thailand, Ghana, Peru, and Paraguay. Vietnam is the second Southeast Asian country, after Thailand, to reach such a deal with Singapore.
Source: MTI, NCCS, The Straits Times
Read more: Carbon credits as diplomacy: How Asia-Pacific is redefining market leadership
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