Temasek’s decarbonisation-focused investment subsidiary GenZero has signed a collaboration agreement with carbon credit certification body Gold Standard, the Rwanda Green Fund and the Rwanda Environment Management Authority (REMA) to work together on developing a pipeline of Article 6-compliant carbon credit projects in Rwanda.
According to a Sept 19 announcement, this pioneering 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 like Rwanda while generating sustainable development benefits for the local economy, environment and communities.
Under the agreement, Rwanda and GenZero will collectively study and assess the potential for Article 6 projects. According to the parties, successful projects will go through a “robust” due diligence and screening process, and are expected to meet criteria set by the government of Rwanda and GenZero, before undertaking certification by Gold Standard.
Article 6-eligible projects should meet the criteria under Rwanda’s National Carbon Market Framework, say the parties. “These projects will then be able to issue credits that come with Corresponding Adjustments (CAs), which will ensure that the underlying mitigation is not double-counted when claimed towards international compliance targets.”
Eligible projects will need to utilise Gold Standard’s methodologies and comply with the certification body’s requirements. GenZero will set out investment parameters and assess proposals for commercial viability. Considerations include the project’s mitigation potential, project maturity and financial returns.
The projects under the collaboration agreement are expected to cover both carbon reduction and removal activities that are whitelisted by the Rwanda government for Article 6. According to the parties, these projects “could deliver biodiversity, environmental, health and other sustainable development benefits”. They will also help to enable job creation and stimulate the green economy.
The agreement builds on Singapore’s and Rwanda’s earlier efforts. The governments of Singapore and Rwanda signed a memorandum of understanding (MOU) in December 2023 on the sidelines of the United Nations Climate Change Conference (COP28) to collaborate on carbon credits aligned with Article 6 of the Paris Agreement.
Both countries agreed to collaborate on the exchange of best practices and knowledge of carbon market mechanisms, as well as the identification of mutually beneficial Article 6-compliant carbon credit projects that will support both countries in achieving their Nationally Determined Contributions (NDCs).
Onscreen, from left: Margaret Kim, CEO, Gold Standard; and Juliet Kabera, Director General, Rwanda Environment Management Authority (REMA). Sitting, from left: Frederick Teo, CEO, GenZero; and Teddy Mugabo, CEO, Rwanda Green Fund
Frederick Teo, CEO of GenZero, says: “Climate change is a global challenge which requires collective effort in order to meaningfully move the needle. International collaboration will be integral in accelerating decarbonisation globally. We are excited to explore Article 6-compliant projects in Rwanda using Gold Standard methodologies in this partnership that will enable us to develop high-integrity carbon projects and bring about positive impact to the local communities in Rwanda.”
Margaret Kim, CEO of Gold Standard, says: “At the heart of Article 6 is the idea of ‘cooperation’ — of different parties coming together to achieve net zero by working together to reduce emissions and adapt to climate change across borders. The first-ever Article 6 credits were issued by Gold Standard to a project in Rwanda. The agreement signed today builds on this achievement and will lead to more projects that have a real climate impact, improve people's lives, and help Rwanda to achieve its sustainable development objectives.”
Teddy Mugabo, CEO of Rwanda Green Fund, says: “The proposed collaboration will help Rwanda enhance its position as an early mover in Article 6 projects in Africa and globally. The pipeline of investments will align with Rwanda’s national priorities and enable the country to achieve its ambitious climate action plan.”
Juliet Kabera, Director General of REMA, says: “The new agreement between Rwanda’s entities and GenZero from Singapore is a significant milestone in our climate action collaboration. It builds on our shared commitment to sustainability, enhancing previous initiatives and creating new opportunities for innovation in carbon market mechanisms. By aligning with Article 6 of the Paris Agreement, we will strengthen our capacity to meet our NDCs and foster global cooperation in tackling climate change.”
