From left (on-screen): Margaret Kim, CEO, Gold Standard; Juliet Kabera, Director General, Rwanda Environment Management Authority (REMA). From left (sitting): Frederick Teo, CEO, GenZero; Teddy Mugabo, CEO, Rwanda Green Fund.
- Rwanda, Gold Standard, and GenZero signs Collaboration Agreement to develop a pipeline of Article 6 projects in Rwanda
- Parties to study and identify suitable projects to apply Gold Standard methodologies on, that will also meet Article 6 criteria
- Builds on earlier Memorandum of Understanding (MoU) between the governments of Singapore and Rwanda announced in December 2023
Singapore – 19 September, 2024 – Rwanda, represented by the Rwanda Green Fund, the country’s financing vehicle for attracting and coordinating climate finance through strategic investments, and the Rwanda Environment Management Authority (REMA), the country’s designated national authority under Article 6, Gold Standard, one of the world’s leading carbon and sustainable development standard and certification body, and GenZero, a Singapore-based investment company focused on accelerating decarbonisation globally, have signed a Collaboration Agreement to work together on developing a pipeline of Article 6-compliant carbon credit projects in Rwanda. This pioneering partnership between a government, a standard-setting body, and an investor reflects the shared commitment of the partners to catalyse international investment in high-integrity Article 6 projects in countries such as Rwanda, while generating sustainable development benefits for the local economy, environment, and communities.
Teddy Mugabo, CEO of Rwanda Green Fund said, “The proposed collaboration will help Rwanda enhance its position as an early mover in Article 6 projects in Africa and globally. The pipeline of investments will align with Rwanda’s national priorities and enable the country to achieve its ambitious climate action plan.”
Projects under the Collaboration Agreement and Article 6 relevance
The projects under the Collaboration Agreement are expected to cover both carbon reduction and removal activities that are whitelisted by the Rwanda government for Article 6. These projects could deliver biodiversity, environmental, health, and other sustainable development benefits. They will also help to enable job creation and stimulate the green economy.
Under the Agreement, Rwanda, and GenZero will collectively study and assess the potential for Article 6 projects. Successful projects will go through a robust due diligence and screening process, and are expected to meet criteria set by the government of Rwanda and GenZero, before undertaking certification by Gold Standard.
Article 6 eligible projects should meet the criteria under Rwanda’s National Carbon Market Framework. These projects will then be able to issue credits that come with Corresponding Adjustments (CAs), which will ensure that the underlying mitigation is not double counted when claimed towards international compliance targets.
Eligible projects will need to utilise Gold Standard’s methodologies and comply with the certification body’s requirements. GenZero will set out investment parameters and assess proposals for commercial viability. Considerations include the project’s mitigation potential, project maturity and financial returns.
Margaret Kim, CEO of Gold Standard said, “At the heart of Article 6 is the idea of ‘cooperation’ – of different parties coming together to achieve net zero by working together to reduce emissions and adapt to climate change, across borders. The first ever Article 6 Credits were issued by Gold Standard to a project in Rwanda. The agreement signed today builds on this achievement and will lead to more projects that have a real climate impact, improve people’s lives, and help Rwanda to achieve its sustainable development objectives.
Builds on Singapore’s and Rwanda’s earlier efforts
The governments of Singapore and Rwanda signed a MoU in December 2023 on the sidelines of the United Nations Climate Change Conference (COP28) to collaborate on carbon credits aligned with Article 6 of the Paris Agreement1. Both countries agreed to collaborate on the exchange of best practices and knowledge of carbon market mechanisms, as well as the identification of mutually beneficial Article 6-compliant carbon credit projects that will support both countries in achieving their Nationally Determined Contributions (NDCs).
Juliet Kabera, Director General of Rwanda Environment Management Authority (REMA) said, “The new agreement between Rwanda’s entities (Rwanda Green Fund and REMA) and GenZero from Singapore is a significant milestone in our climate action collaboration. It builds on our shared commitment to sustainability, enhancing previous initiatives and creating new opportunities for innovation in carbon market mechanisms. By aligning with Article 6 of the Paris Agreement, we will strengthen our capacity to meet our NDCs and foster global cooperation in tackling climate change”
Frederick Teo, CEO of GenZero said, “Climate change is a global challenge which requires collective effort in order to meaningfully move the needle. International collaboration will be integral in accelerating decarbonisation globally. We are excited to explore Article 6-compliant projects in Rwanda using Gold Standard methodologies in this partnership that will enable us to develop high-integrity carbon projects and bring about positive impact to the local communities in Rwanda.”
About Rwanda Green Fund
The Rwanda Green Fund stands as the country’s financing vehicle designed to attract and coordinate climate finance. Through strategic investments, the fund drives transformative impact, fostering sustainable development and climate resilience in Rwanda.
With a mission to catalyze innovative solutions for sustainable finance and green growth, the Rwanda Green Fund plays a pivotal role in mobilizing resources and financing climate initiatives.
The Fund’s efforts are guided by four core pillars:
- Resource mobilization: Expanding and diversifying the Fund’s financial base by attracting investments from development partners, the private sector, and other climate finance stakeholders.
- Fund Management: Ensuring transparency, accountability, and efficiency in managing resources for impactful, transformative and measurable outcomes.
- Program Design and Coordination: Designing and coordinating high impact programs aimed at addressing climate change and achieving the country’s sustainable development goals.
- Capacity Building and Development: Strengthening institutional and community capacities to respond to climate challenges and ensuring the sustainability of projects.
For more information on the Rwanda Green Fund, visit https://greenfund.rw/.
About Rwanda Environment Management Authority
The Rwanda Environment Management Authority (REMA) holds the legal mandate for national environmental protection, conservation, and overall management. This includes advising the government on all matters related to the environment and climate change. REMA’s mission is to supervise and monitor environmental management, ensuring that environmental issues are prioritized in all national development plans. Its vision is for all sectors of Rwandan society to value and practice sound environmental management and the rational use of natural resources, contributing to the country’s aspirations for sustainable development.
For more information on the Rwanda Environment Management Authority, visit https://www.rema.gov.rw/.
About Gold Standard
Gold Standard was established in 2003 by WWF and other international NGOs as a best practice standard to help the world grow to zero.
All Gold Standard certified projects and programmes accelerate progress towards the Net-Zero ambition of the Paris Climate Agreement while catalyzing impact toward the broader Sustainable Development Goals. Its standard, Gold Standard for the Global Goals, allows climate and development initiatives to quantify, certify and maximise their impacts toward climate security and sustainable development. Certification against the standard provides the confidence that these results are measured and verified, enabling credible impact reporting.
ISEAL Code Compliant and backed by a broad NGO Supporter Network, Gold Standard has 2900+ projects underway in over 100 countries, creating billions of dollars of shared value from climate and development action worldwide.
For more information on Gold Standard, visit https://www.goldstandard.org/.
About GenZero
GenZero is an investment platform company focused on accelerating decarbonisation globally. Founded by Temasek, we seek to deliver positive climate impact alongside long-term sustainable financial returns by investing in opportunities with the potential to be nurtured into impactful and scalable solutions.
Driven by a common purpose to decarbonise for future generations, we recognise the need for a holistic and integrated approach to achieve a net zero world. At GenZero, we adopt a flexible investment approach across three focus areas to drive climate impact: (i) nature-based solutions that help protect and restore our natural ecosystems while benefiting local communities and biodiversity; (ii) technology-based solutions that deliver deep decarbonisation impact; and (iii) carbon ecosystem enablers which refer to companies and solutions that support the development of an effective, efficient, and credible carbon ecosystem.
For more information on GenZero, visit https://www.genzero.co/.
