Rwanda and Singapore have embarked on designing high-quality carbon credit projects that deliver real climate and development benefits.

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This after the two governments signed a carbon credit agreement on Tuesday, May 6 in Singapore, in a bid to start the implementation of Article 6 of the Paris Agreement.

The agreement marks a milestone in climate cooperation and Rwanda carbon market framework.

The carbon market, established the Paris Agreement, enables climate polluters to finance greenhouse gas (GHG) emissions-reduction projects in other countries or entities and count the reductions toward their own climate targets. It is implemented by selling what is known as carbon credits.

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One carbon credit represents one tonne of greenhouse gas emission reduced or removed. Carbon credits are generated from activities that reduce or remove these emissions.

In the context of Article 6 of the Paris Agreement, activities are referred to as ‘mitigation activities,’ which reduce greenhouse gas emissions to prevent climate change.

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The signing of carbon trading deal took place on the sidelines of Ecosperity Week 2025, an annual conference that brought together key decision makers from both the public and private sectors with a shared vision to build a vibrant ecosystem that could accelerate climate action and promote a just transition.

The implementing agreement builds on the Memorandum of Understanding (MoU) signed by both countries in December 2023 on the sidelines of COP28 in Dubai.

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This agreement establishes a framework for Rwanda and Singapore to work together by trading high-quality carbon credits.

It shows the commitment to cutting emissions while also attracting investment, encouraging innovation, and supporting sustainable development.

A joint working group will guide this collaboration, with a focus on environmental integrity, innovation, and private-sector engagement.

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"Rwanda is committed to deepening technical cooperation with Singapore to harness the potential of carbon markets as an effective tool for climate action,” Minister of Environment Valentine Uwamariya, said after signing the agreement.

"Through this agreement, we aim to promote high-integrity carbon markets, achieve tangible emissions reductions, and support sustainable development for our communities.”

She added that the agreement would pave the way for stronger public-private partnerships to address climate change impacts.

According to a statement by Ministry of Environment, this bilateral cooperation not only supports Singapore’s efforts to meet its climate targets through credible, verified offsets, but also unlocks investment, innovation, and green jobs in Rwanda.

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Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations, Grace Fu, the agreement reaffirmed the two countries’ strategic partnership and explored ways to expand joint efforts.

"Over the years, Singapore and Rwanda have strengthened cooperation in forward-looking areas such as the digital economy and fintech,” Minister Fu said.

"Climate change is a new and emerging area of collaboration given the existential challenges that we are facing globally.

"This Implementation Agreement builds on our existing partnership and represents a concrete step in operationalising the Paris Agreement. I look forward to companies utilising this agreement to develop high-quality carbon credit projects under Article 6 to accelerate climate action.”

She said the Rwanda–Singapore Implementation Agreement stands as a leading example of South-South cooperation in putting Article 6 of the Paris Agreement into practice, embodying a shared commitment to climate ambition through action, equity, and sustainable development.

Early this year, Rwanda unveiled a ‘Practical Guide’ to help understand the carbon market and related investment opportunities.

The country expects to sell 7.5 million tonnes of carbon dioxide equivalent (or carbon credits) estimated to generate $337 million.