Rwanda Green Fund (Fonerwa) on Thursday, September 19, signed a new agreement with Gold Standard, and Singapore-based GenZero as the three parties look to join forces on developing a pipeline of Article 6-compliant carbon credit projects in Rwanda.

Article 6 of the Paris Agreement sets out the rules for global trade in greenhouse gas emissions reductions.

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It is also seen as an essential enabler of international emissions trading, providing countries and businesses with a key pathway to meet and accelerate their climate goals.

"The proposed collaboration will help Rwanda enhance its position as an early mover in Article 6 projects in Africa and globally,” said Teddy Mugabo, chief executive at Rwanda Green Fund.

She added, "The pipeline of investments will align with Rwanda’s national priorities and enable the country to achieve its ambitious climate action plan.”

The development is Rwanda’s first deal signed to facilitate carbon trading since its framework was launched in 2023.

According to the Rwanda Green Fund, the development "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.

"Climate change is a global challenge that requires a collective effort to meaningfully move the needle. International collaboration will be integral in accelerating decarbonization globally,” added Frederick Teo, chief executive at GenZero.

"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 the deal

The projects under the "Collaboration Agreement” are expected to cover both carbon reduction and removal activities that are whitelisted by the government for Article 6.

They will also help to enable job creation and stimulate the green economy, but data on the number of jobs expected was not made public.

The deal will also see Rwanda and GenZero collectively studying and assessing 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.

The 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.

"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,” said Margaret Kim, chief executive at Gold Standard.