On May 6, 2025, Rwanda became the sixth country to sign a carbon trading implementation agreement with Singapore since late 2023, Singaporean newspaper The Straits Times has reported.
The deal was formalized by Singapore’s Minister for Sustainability and the Environment, Grace Fu, and Rwanda’s Minister of Environment, Dr Valentine Uwamariya, during her visit to Singapore.
This bilateral pact enables Singapore to purchase carbon credits from Rwanda to help meet its climate targets under the Paris Agreement.
One carbon credit represents one ton of carbon dioxide (CO2) either removed from the atmosphere or prevented from being emitted.
Relevant: Singapore Attracts Nearly $1B In Bids For Its Carbon Credits Tender
These credits will support Singapore’s goal of offsetting around 2.5 million tons of emissions annually from 2021 to 2030.
They can be used by the government or by companies liable for carbon taxes to offset up to 5% of their taxable emissions.
Singapore has previously signed similar deals with Papua New Guinea, Ghana, Bhutan, Peru, and Chile.
These agreements falls under Article 6 of the Paris Agreement, which governs international carbon trading.
Dr Uwamariya emphasized that the pact between Rwanda and Singapore aims to promote credible carbon markets and sustainable development.
Minister Fu noted the deal also reflects deepening cooperation in digital and financial technologies between the two nations.
While Singapore is in negotiations with over 15 other countries—including Malaysia, Sri Lanka, and the Philippines—it has yet to sign agreements with Southeast Asian nations.
Experts suggest this is because African nations like Ghana and Rwanda began developing carbon market frameworks earlier with support from countries like Switzerland and Singapore.
