Singapore’s GenZero Invests in Restoration Project in Ghana, Aims to Generate Carbon Credits

GenZero, a Temasek-owned investment platform company focused on accelerating decarbonisation globally, has signed a Memorandum of Understanding (MoU) with AJA Climate Solutions (AJA), to invest in a landscape restoration project in Ghana.

The investment aims to restore degraded and deforested landscapes in the Kwahu area, while enhancing the lives and livelihoods of local communities. The Kwahu project builds on Singapore’s intergovernmental partnerships in Article 6.

In November 2022, substantive negotiations between Singapore and Ghana were concluded on the Implementation Agreement on Cooperative Approaches which enables the bilateral transfer of carbon credits aligned with Article 6 between both countries.

Carbon credits traded under this Implementation Agreement, when completed, could potentially be used to offset part of corporates’ carbon tax liability under Singapore’s carbon tax. The project could mark a first for Singapore if it generates carbon credits with corresponding adjustments under this Implementation Agreement.

Unlocking Carbon Financing

The project is located in the greater Kwahu area in Ghana’s Eastern Region where there is a highland and lowland forest system that borders the Volta Lake. The project will regenerate an estimated 100,000 hectares of degraded lands, restore the landscape’s biodiversity and transform it into an economically-productive ecosystem for the local indigenous population.

This will additionally create new income opportunities for the local indigenous communities through agroforestry practices training and job creation, and empower 22,000 members of the local community with the opportunity to actively participate in the farming system and improve their livelihoods.

GenZero’s investment into the landscape restoration project follows the expected agreement between Singapore and Ghana to unlock carbon financing for businesses while advancing their respective climate ambitions.

The Kwahu carbon project aims to generate carbon credits with corresponding adjustments, which are critical in avoiding the double counting of underlying emissions reductions or removals when carbon credits are traded.

Frederick Teo, CEO of GenZero, said: “We are excited to work with AJA Climate Solutions to deliver meaningful climate action in Ghana. The team’s deep understanding of the Kwahu region, along with their passion and commitment to making a difference gives us the perfect opportunity to showcase a new supply of carbon credits with corresponding adjustments.”