DUBAI - Singapore’s Ministry of Trade and Industry’s deputy secretary Keith Tan and Rwandan Environment Minister Jeanne d’Arc Mujawamariya signed a memorandum of understanding (MOU) on Dec 2 to collaborate on carbon markets.
To ensure a diversified portfolio of carbon credits, Singapore has signed at least a dozen MOUs with countries such as Chile, Colombia and Mongolia.
The MOUs pave the way for possible implementation agreements with these countries, although this would depend on each country’s capability to begin trading these credits with Singapore.
Both the MOUs and the implementation agreements are aligned with Article 6 of the Paris Agreement, which essentially allows countries to voluntarily cooperate to cut their greenhouse gas emissions as set out by their national climate targets.
These carbon projects should be able to promote sustainable development and environmental integrity.
For instance, Singapore is prepared to contribute 5 per cent of its share of carbon credit proceeds to support climate adaptation in Rwanda to ensure that the projects have broader sustainable development benefits.
Senior Minister Teo Chee Hean, who is also the Coordinating Minister for National Security, noted that both countries, being small states, share a close working relationship.
He was speaking at Rwanda’s COP28 pavilion at the launch of the African nation’s carbon market framework on Dec 2.
“We have cooperated in areas such as fintech and cyber security. I am delighted that our countries are now deepening our cooperation through carbon market collaboration,” he added.
SM Teo said that Singapore’s approach to this emerging partnership with Rwanda will be underpinned by investment, interlinkages and resilience.
“Singapore stands ready to work with our companies to invest in Rwanda’s climate future,” he said.
He noted that Singapore companies are keen to work on carbon market projects in Rwanda, and that the Singapore Government will work closely with Rwanda’s authorities on projects that can deliver high impact.
“Singapore is a vibrant carbon services and trading hub, and upholds high environmental integrity standards. We are ready to work with Rwanda to link its carbon credit supply to the global market through Singapore,” he added.
