Rwanda, represented by the Rwanda Green Fund, the country’s financing vehicle for attracting and coordinating climate finance through strategic investments, and the Rwanda Environment Management Authority (REMA), the country’s designated national authority under Article 6, Gold Standard, one of the world’s leading carbon and sustainable development standard and certification body, and GenZero, a Singapore-based investment company focused on accelerating decarbonisation globally, have signed a Collaboration Agreement to work together on developing a pipeline of Article 6- compliant carbon credit projects in Rwanda.
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 such as Rwanda, while generating sustainable development benefits for the local economy, environment, and communities.
Teddy Mugabo, CEO of Rwanda Green Fund said: “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.”
Projects under the Collaboration Agreement and Article 6 relevance
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. 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.
Under the Agreement, Rwanda, and GenZero will collectively study and assess the potential for Article 6 projects. 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. These projects will then be able to issue credits that come with Corresponding Adjustments (CAs), which will ensure that the underlying mitigation is i 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.
Margaret Kim, CEO of Gold Standard said, “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.
Builds on Singapore’s and Rwanda’s earlier efforts
The governments of Singapore and Rwanda signed a 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).
Juliet Kabera, Director General of Rwanda Environment Management Authority (REMA) said:
“The new agreement between Rwanda’s entities (Rwanda Green Fund and REMA) 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”.
Frederick Teo, CEO of GenZero said:
“Climate change is a alobal challende which 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.”
Singapore and Rwanda sign Memorandum of Understanding to collaborate on carbon credits to accelerate climate action. (End)