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illuminem summarises for you the essential news of the day. Read the full piece on Business Insider Africa or enjoy below:
🗞️ Driving the news: While global powers pursue Africa’s critical minerals, Singapore is targeting the continent’s carbon credits to meet its climate goals and establish itself as Asia’s hub for carbon trading
• The city-state is partnering with African nations to co-develop projects that generate carbon offsets—such as reforestation and clean cookstove initiatives—and aims to trade these credits under Article 6 of the Paris Agreement
🔭 The context: Carbon offsets allow countries or companies to compensate for unavoidable emissions by investing in projects that reduce or remove CO₂ elsewhere
• Singapore, which emitted around 49 million tons of CO₂ in 2023 and has limited space for domestic offset projects, is turning to international cooperation to meet its 2035 emissions target of 45–50 million tons
• Through its partnerships, including advanced deals in Rwanda and Ghana, Singapore gains access to cost-effective, high-integrity offsets while fostering trade ties with the Global South
🌍 Why it matters for the planet: Well-regulated carbon markets can help finance climate mitigation in developing countries while enabling emissions reductions globally
• Africa offers considerable potential for high-quality offsets due to its large-scale reforestation and clean energy needs
• However, the environmental integrity and equity of such arrangements depend on transparent governance, local benefit-sharing, and robust monitoring to avoid greenwashing or exploitation
⏭️ What's next: Singapore has signed agreements with 24 countries under the Paris Agreement’s Article 6 framework, including six African nations
• It will soon begin trading credits from these collaborations via its domestic exchanges
• As Asian corporations seek credible offsets to meet net-zero targets, Singapore is positioning itself as the region’s primary carbon trading gateway
• The next phase involves scaling project implementation and integrating these offsets into national and corporate compliance systems
💬 One quote: “Singapore’s role as a carbon trading hub depends on securing high-integrity offsets abroad—Africa provides both opportunity and responsibility.” — Industry source familiar with the implementation agreements
📈 One stat: Singapore emitted 49 million tons of CO₂ in 2023—more than 30 times Rwanda’s emissions—but relies on Africa to generate offsets for its decarbonisation plans
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