Singapore to Purchase Nature-Based Carbon Credits from Ghana, Paraguay, and Peru
Singapore, Sep 16 (PTI): Singapore is set to invest SGD 76.4 million to acquire over two million tonnes of nature-based carbon credits from projects in Ghana, Paraguay, and Peru, as reported by The Straits Times on Tuesday.
This initiative marks Singapore's inaugural foray into obtaining carbon credits from nature-based schemes, according to the National Climate Change Secretariat (NCCS) and the Ministry of Trade and Industry (MTI).
The four projects are designed to conserve Peruvian forests and curb deforestation, restore degraded pastureland in Ghana, and sequester carbon in Paraguayan grasslands through sustainable management practices.
The acquired 2.175 million tonnes of carbon credits will offset nearly 4% of Singapore's greenhouse gas emissions for 2022. One carbon credit equals the removal or prevention of one tonne of carbon dioxide emissions.
Projects like these offer financial incentives to maintain natural landscapes rather than transforming them for other developments, helping to ensure their longevity.
In Peru, two projects aim to protect forested regions from logging, monetizing the emissions prevented as carbon credits. The Kowen Antami Redd+ Project focuses on safeguarding the Yanachaga Chemillen National Park and the San Matias-San Carlos Protection Forest, facing pressures from agriculture expansion, road construction, and wildfires.
An additional project, "Together for Forests Redd+," seeks to reduce deforestation across three provinces in Peru's Madre de Dios region, covering forestry land and smallholder forests.
Singapore's bid for these credits involved three firms, including Temasek-backed GenZero, Mercuria Asia Resources, and US-based Boomitra. These agreements are crucial in helping Singapore achieve its 2030 climate objectives.
Mercuria will provide credits from Peru, while Boomitra handles those from Paraguay’s Pampas grasslands, implementing sustainable ranching practices to enhance soil carbon retention.
GenZero will oversee the Ghana project, intending to rehabilitate 51,000 ha of degraded land in the Kwahu region over a 40-year period, employing native tree replanting and agroforestry techniques.
Singapore’s strategy aligns with the Paris Agreement, buying credits from nations it has partnered with, such as Ghana, Peru, Paraguay, and six others, including a recent agreement with Vietnam.
The MTI and NCCS selected projects based on proposal quality, the parties’ experience, and price competitiveness.
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