Singaporean companies can now tap into a broader pool of carbon credits to offset up to 5% of their taxable emissions, thanks to a new bilateral agreement with Ghana. This marks the second such partnership for Singapore, following a similar agreement with Papua New Guinea.
Close-up of two tree seedlings, Ghana nature landscape in the background. AI generated picture.
Starting this year, firms in Singapore are required to pay a carbon tax set at $18.56 per tonne of carbon dioxide equivalent. The new agreement with Ghana will provide additional carbon credits, enabling companies to meet their climate targets more effectively.
Read more: Singapore's green strategy sparks carbon market growth
The partnership aligns with Article 6 of the Paris Agreement, which promotes a market-based mechanism to regulate and ensure transparency in the global transfer of carbon credits. This mechanism aims to facilitate international cooperation in reducing greenhouse gas emissions.
As part of the agreement, developers of eligible projects in Ghana must allocate 5% of their proceeds from authorised carbon credits towards nature conservation efforts in the country. This provision ensures that the benefits of carbon credit projects extend beyond mere emission offsets and contribute to broader natural resilience initiatives.
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In a related development, Ghana has also signed a carbon credit transfer agreement with Sweden, as reported by the Ghana News Agency. This move highlights Ghana's active role in the global carbon credit market and its commitment to sustainable development.
The enhanced access to carbon credits is expected to significantly aid Singaporean firms in managing their carbon liabilities while supporting international environmental goals.
In today's evolving landscape of corporate policies driven by environmental concerns, it is essential for companies to seek guidance from experienced consultants to navigate these regulations and implement effective conservation strategies. As nature-related policies gain prominence, DGB Group is poised to support businesses in adapting to this new context. Our commitment to creating and executing top-tier nature-based solutions that generate carbon units helps companies achieve their environmental targets and contribute to a biodiverse, sustainable future.
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