Singapore taps Africa’s carbon credits to fuel net-zero ambitions

While global powers scramble for Africa’s critical minerals, Singapore is quietly charting a different path — targeting the continent’s carbon credits to meet its climate goals and become Asia’s carbon trading hub.
The city-state, constrained by its small size and lack of natural resources, has limited scope to develop large-scale carbon offset projects domestically. Instead, it is turning to Africa for nature-based solutions like forest restoration and clean cookstove initiatives. Each carbon credit — equivalent to one ton of CO₂ avoided or removed — helps Singapore and its regional partners offset emissions they cannot eliminate. Singapore has signed agreements under Article 6 of the Paris Agreement with 24 countries, including six in Africa. Rwanda and Ghana are the most advanced, with over 30 projects under consideration. A recent procurement round awarded contracts for more than 2 million tonnes of high-integrity credits from projects in Ghana, Peru, and Paraguay.
The Singaporean government views these credits as vital to achieving its 2030 Nationally Determined Contribution (NDC) and its 2050 net-zero target. Despite investments in solar energy, carbon capture, and a national carbon tax, officials admit decarbonization at home remains limited. “Why we really need Africa as a partner is because of climate change,” said Rahul Ghosh of Enterprise Singapore. “We need a “transference of carbon credits that helps us achieve our carbon goals,” he added. By investing in African carbon sinks, Singapore aims to lead in environmental finance — proving that, amid the global resource race, sustainable trade can offer a different kind of power.