Rwanda and Singapore have launched a call for carbon market projects’ proposals under Article 6 of the Paris Agreement. ALSO READ: Rwanda to mobilise finance for 19 carbon market-ready projects Under the carbon market to mobilise climate finance, companies or countries with projects that reduce greenhouse gas emissions earn carbon credits, while those that emit more pollution can buy these credits to balance their emissions. ALSO READ: Can Rwanda make the best out of carbon markets? One carbon credit usually represents one tonne of carbon emissions reduced or removed from the atmosphere. The idea is to encourage cleaner activities such as renewable energy, clean cooking, or forest protection by rewarding countries like Rwanda reducing greenhouse gas emissions financially. At the same time, it makes pollution more expensive, pushing polluters to change their behaviour. This opportunity seeks eligible, high-quality carbon credit projects under the implementation agreement between Rwanda and Singapore, according to a statement released by the Rwanda Environment Management Authority (REMA) on Friday, January 30. The bilateral cooperation between Rwanda and Singapore not only supports Asian country's efforts to meet its climate targets through credible, verified offsets, but also unlocks investment, innovation, and green jobs in Rwanda. “This application call invites project developers to submit applications for carbon mitigation activities that generate Article 6-compliant carbon credits, which may be used by Singapore towards the achievement of its climate actions known as Nationally Determined Contribution (NDC) under the Paris Agreement,” REMA said. International cooperation under Article 6 provides a strategic opportunity for Rwanda to attract climate finance, accelerate low-emission development, and unlock new economic opportunities while contributing to global mitigation efforts. ALSO READ: How investors can tap into Rwanda’s carbon market Through this collaboration, Rwanda seeks to promote high-integrity carbon market activities that deliver measurable emission reductions and sustainable development co-benefits. This call welcomes both technology-based and nature-based projects, enabling a diversified portfolio of mitigation activities across key sectors. “Projects are expected to demonstrate measurable reduced greenhouse gas emissions and deliver important sustainable development co-benefits such as improved livelihoods, enhanced biodiversity, reduced pollution, strengthened energy security, and job creation. Rwanda reaffirms its commitment to transparent, high-integrity carbon market cooperation that supports national climate objectives and sustainable development priorities,” REMA explained. Authorised projects will unlock additional carbon mitigation projects in Rwanda and advance both countries’ climate ambitions through targeted financing. ALSO READ: Can Rwanda make the best out of carbon markets? These projects will promote sustainable development and benefit local communities through job creation, clean water access, improved energy security, and reduced environmental pollution. Interested parties may submit applications for their carbon credit projects in Rwanda to be authorised in alignment with Article 6 of the Paris Agreement. Applications submitted will be reviewed by the Singapore and Rwandan governments. Application and authorisation process The process moves from project concept submission to formal authorisation by both countries, and finally to verified carbon credit issuance and approval for international transfer. The application and authorisation process comprises three stages, each corresponding to a different stage of implementation for the carbon credit project. The first two stages require applicants to submit details on the design and implementation plan for the carbon credit project in the lead-up to project authorisation. The final stage is for corresponding adjustments to be applied to the carbon credits generated from the authorised project, in accordance with Article 6, Paragraph 2 of the Paris Agreement. Singapore and Rwanda will assess applications in accordance with each country’s respective requirements. ALSO READ: Rwanda enters tripartite deal to cooperate on Article 6 carbon credit projects The eligibility criteria and the list of eligible carbon crediting programmes and methodologies under the Singapore-Rwanda Implementation Agreement are on the Carbon Markets Cooperation website. Fees charged to start carbon market projects All new carbon market projects and transactions in Rwanda will be subject to newly introduced fees, while existing projects are exempt, REMA announced last week. However, developers of existing projects who initiate a new stage within their project will need to pay the relevant fees for that stage. Opening a carbon market account carries a $1,000 fee, while project registration and issuance of a non-objection letter require $1,500. Approval of a project under Article 6 or the Voluntary Carbon Market costs $3,000. Issuance confirmation is charged per carbon credit at $0.20 under Article 6 and $0.10 under the Voluntary Carbon Market. Transaction authorisation fees amount to 2% of total emission reductions under Article 6, with up to 15% of authorised emission reductions allocated to support national climate priorities. Renewal and resubmission fees apply for modifications, including $5,000 for renewal of a crediting period and $500 for resubmission of Stage A or extension requests. For land-based projects on community, public, or private farmland, administrative fees remain the same, but at least 30% of revenues or credits must be allocated to communities and landowners to ensure direct benefits.
