Rwanda’s Environment Minister Dr Valentine Uwamariya and Singapore’s Minister for Sustainability and the Environment, Ms Grace FU Hai Yien, signed an implementation agreement in Singapore.
In a major step forward for international climate cooperation, Rwanda and Singapore have signed a landmark agreement focused on carbon markets.
The deal, finalized between the Government of Rwanda and Singapore-based climate tech firm Spore, aims to unlock millions of dollars in climate finance through clean energy projects that will benefit local communities and cut global emissions.
Rwanda’s Environment Minister Dr Valentine Uwamariya and Singapore’s Minister for Sustainability and the Environment, Ms Grace FU Hai Yien, signed an implementation agreement in Singapore.
At the heart of the partnership is the deployment of fuel-efficient cookstoves across rural Rwanda. These stoves significantly reduce firewood consumption, helping to curb deforestation and improve indoor air quality—especially for women and children, who are most exposed to harmful smoke.
Each tonne of carbon emissions avoided through these cleaner technologies will be converted into a carbon credit, which Spore will purchase and sell to global corporations seeking to offset their own emissions.
The initiative is part of the growing voluntary carbon market, where companies invest in emission-reduction projects around the world to meet their sustainability goals.
While the financial details of this specific agreement were not disclosed, similar deals by Spore suggest a price of around US$10–12 per carbon credit.
Over the project’s lifespan, Rwanda could generate hundreds of millions of dollars, which it plans to reinvest in environmental and social development initiatives.
With this agreement, Rwanda becomes the sixth African nation—after Kenya, Malawi, Mozambique, Tanzania, and Uganda—to partner with Spore since 2023.
Together, these countries are laying the groundwork for large-scale carbon credit generation and a new stream of sustainable revenue.
Singapore, meanwhile, is solidifying its role as a global hub for carbon trading and sustainable finance in Asia. Its robust legal framework and financial infrastructure make it an ideal partner for cross-border climate initiatives.
By supporting developing countries like Rwanda, Singapore enables the monetization of climate action while helping companies worldwide meet net-zero targets.
Carbon markets operate by assigning a price to carbon emissions. Entities that exceed their emissions limits can purchase credits from those who reduce or remove emissions, creating an economic incentive for climate-friendly innovations—especially in places where such technologies might not otherwise be accessible.
The Rwanda-Spore deal illustrates how carbon markets can deliver both environmental and economic benefits. It demonstrates that even small-scale changes, like improved cooking methods, can have a global impact when properly scaled and supported.
As the global appetite for high-quality carbon offsets grows, partnerships like this one are expected to increase—shaping the next phase of climate action and sustainable development.
