Singapore and Rwanda Sign Bilateral Carbon Market Agreement to Cut Emissions

Rwanda has become the latest country to sign a carbon trading implementation agreement with Singapore, marking a significant step in both nations’ efforts to tackle climate change and promote sustainable development.

The agreement was signed on Monday by Singapore’s Minister for Sustainability and the Environment, Grace Fu, and Rwanda’s Minister of Environment, Dr. Valentine Uwamariya, during the latter’s official visit to Singapore.

The deal makes Rwanda the sixth country to enter into such a pact with Singapore since late 2023, joining Papua New Guinea, Ghana, Bhutan, Peru, and Chile.

These bilateral agreements enable Singapore to purchase carbon credits generated from approved climate projects in partner countries to offset its greenhouse gas emissions under the Paris Agreement.

Minister Grace Fu, who also serves as Singapore’s Minister-in-Charge of Trade Relations, said the agreement expands the scope of cooperation between the two countries beyond environmental issues.

“It adds to Singapore and Rwanda’s strengthened cooperation in forward-looking areas such as the digital economy and fintech,” she noted.

Dr. Uwamariya welcomed the partnership, stating: “Through this agreement, we aim to promote high-integrity carbon markets, achieve tangible emissions reductions, and support sustainable development for our communities.”

Carbon credits under these pacts represent one tonne of carbon dioxide either removed from the atmosphere or prevented from being released—such as by preserving forests from deforestation.

Singapore has projected that it would need to use about 2.5 million tonnes of carbon credits annually between 2021 and 2030 to help meet its climate targets.

In 2030, Singapore’s total emissions are expected to be 62.51 million tonnes, with the use of credits helping reduce that to its stated target of 60 million tonnes.

The carbon credits can be acquired either by the Singaporean government or by companies subject to Singapore’s carbon tax. These firms are allowed to offset up to 5 percent of their taxable emissions through such purchases.

While Singapore has formalized agreements with countries across Africa, South America, and Asia, it is still in active negotiations with over 15 other nations—including Malaysia, the Philippines, and Sri Lanka—but has yet to sign any such pacts within Southeast Asia.

As global efforts to curb emissions intensify, the Singapore–Rwanda carbon trading agreement signals growing international momentum toward collaborative climate action and high-integrity carbon markets.