Singapore Looks to Africa for Carbon Trading, Strategic Partnership
By Ndubuisi Micheal Obineme
…signs an agreement with Ghana to collaborate on carbon credits.
Singapore looks to explore opportunities in the African Carbon Market as it signs an implementation agreement with Ghana to collaborate on carbon credits.
The agreement, signed under Article 6 of the Paris Agreement, underscores Singapore’s interest in promoting sustainable development, generating benefits for local communities, creating jobs, improving energy security, and reducing environmental pollution.
Commenting on this development, Ivan Tan, Director of Trade at Enterprise Singapore, said carbon credits are part of the government’s investment focus in Africa, highlighting the agency’s readiness to facilitate partnerships between Singapore and African companies in the carbon credit value chain.
He made this known in an interview with The Energy Republic, outlining the ongoing discussions between Singapore and Ghana to support carbon credit projects.
According to him, Singapore has a carbon tax rate of $25 Singaporean dollars (SGD) per ton, with a target of reaching S$50 to S$80 per ton by 2030.
In Singapore’s carbon tax regime, he said large emitters are liable for the carbon tax and they may use high-quality international carbon credits to offset up to 5% of their taxable emissions.
Tan disclosed that the strategic agreement between Singapore and Ghana on carbon credits collaboration will allow Singaporean companies to invest in carbon credits from Ghana for offsets in Singapore especially in sectors such as clean cooking, renewable energy, electric mobility, and forestation.
“In July 2024, Enterprise Singapore brought about 20 Singapore-based companies to Ghana, working with the Ghanaian government to share with them the framework and do business with Ghanaian companies on carbon credit projects. This is a win-win business initiative.
“More than 30 Ghanaian project developers with existing carbon credit project proposals in Ghana participated in a business matching session with the Singapore companies.
“Singapore companies can now use the carbon credits to offset its emissions. The offtake agreement will help to also attract more investments in Ghana.
Speaking about the requirements for strategic partnerships with Singapore on carbon credits, he said Singapore needs to sign an agreement with the African country interested in exploring opportunities in Singapore’s carbon credits before both parties can venture into carbon trading.
He noted that the agreement must correspond with both country’s deliverables.
He stated that Enterprise Singapore has more than 35 overseas centers around the world and three overseas centers in Africa, which include South Africa, Ghana, and Kenya.
“Our role in the overseas centres is, promoting trade between Singapore and Africa and attracting African companies to come to Singapore for trade and business development. Some of the African companies that we work with are Sahara Energy and Sasol.
“We also bring Singapore companies to invest in Africa. One of the new things we are working on with Africa is carbon credits,” he added.
