Singapore’s Minister of State for Trade and Industry, Alvin Tan, is leading a business delegation to Accra, Ghana, until July 18, 2024. The mission is to boost carbon credit cooperation between companies from both nations. The delegation includes representatives from 22 Singapore-based companies, comprising project developers, traders, financiers, and other stakeholders within the carbon trading ecosystem.
This collaboration seeks to establish Article 6-compliant carbon credit projects, linking finance into carbon mitigation initiatives that support Ghana’s Sustainable Development Goals. Such projects are essential as they make otherwise unviable carbon mitigation ventures feasible through carbon credit revenues.
During their visit, the Singaporean delegation will engage with senior Ghanaian officials, local developers, and visit carbon credit project sites. Officials from Singapore’s ministries of trade and industry, sustainability and environment, Enterprise Singapore, and the National Environment Agency will accompany the delegation.
Singapore and Ghana share a commitment to combating climate change and promoting sustainability. This collaboration is expected to significantly enhance both countries’ efforts to meet their climate objectives.
Under the agreement, project developers are required to allocate 5% of the proceeds from authorized carbon credits to climate adaptation efforts in Ghana, aiding the country in preparing for and adapting to climate change impacts. Additionally, developers must cancel 2% of authorized carbon credits upon issuance, contributing to the overall reduction of global emissions.
Singapore’s international carbon credit framework allows eligible credits generated under this agreement to be used by Singapore-based companies to offset up to 5% of their taxable emissions. This promotes sustainable development and generates benefits for local communities, such as job creation, improved access to clean water, enhanced energy security, and reduced environmental pollution.