In a move that underscores growing international cooperation on environmental action, Singapore and Rwanda have signed a bilateral agreement enabling the trading of carbon credits under the framework of the Paris Agreement. The deal, formalised on 6 May 2025, during a visit by Rwanda’s Minister of Environment, Dr Valentine Uwamariya, marks Singapore’s sixth such partnership since 2023.
Two hands holding a small seedling. AI generated visual
Minister Grace Fu, who leads Singapore’s Ministry for Sustainability and the Environment, signed the agreement alongside Dr Uwamariya. The pact allows Singapore to purchase high-integrity carbon credits from Rwanda—each credit representing 1 metric tonne of carbon dioxide either removed from the atmosphere or prevented from being released.
These credits will contribute to Singapore’s national green targets, particularly its strategy to offset approximately 2.5 million tonnes of emissions annually from 2021 to 2030. They may be used by both the Singaporean government and companies liable for carbon taxes, who can offset up to 5% of their taxable emissions using such credits.
This bilateral cooperation falls under Article 6 of the Paris Agreement, which establishes guidelines for voluntary international carbon markets. Singapore has previously signed similar agreements with countries including Ghana, Peru, Chile, Bhutan, and Papua New Guinea.
Read more: High-quality carbon credits vs regular carbon credits: what sets them apart?
‘[The agreement] aims to promote credible carbon markets and sustainable development’, said Dr Uwamariya. Minister Fu highlighted that the pact also reflects growing ties between the two nations in digital innovation and financial services.
Singapore is currently engaged in discussions with over 15 other countries to expand its carbon trading network. However, it has yet to finalise any such deals within Southeast Asia. Analysts attribute this to the head start that many African nations, including Rwanda and Ghana, have had in developing robust carbon market frameworks—often in partnership with countries like Switzerland and Singapore.
As global carbon markets mature, bilateral agreements like these are expected to play a critical role in driving investment in nature-based solutions and ensuring the integrity of traded credits.
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Rwanda’s agreement with Singapore reflects a broader global momentum toward credible carbon trading and scalable nature-based solutions. At DGB Group, we align with this vision by designing and executing impactful, science-backed projects—from reforestation to ecosystem restoration—that generate verified carbon credits while uplifting local communities. As countries like Rwanda take the lead in shaping Article 6 frameworks, the pathway for meaningful nature-oriented projects is clearer than ever. Now is the time to be part of that change.
