Chinese Internet giant Tencent has signed a memorandum of understanding (MOU) with GenZero, Temasek's decarbonisation-focused investment subsidiary, granting Tencent the opportunity to offtake at least 1 million "verified, high-quality" carbon credits within GenZero's portfolio over 15 years.
This represents an estimated abatement of at least 1 million tonnes of greenhouse gases.
In a May 6 announcement, both parties say the carbon projects will be verified under "leading international standards or the Paris Agreement Crediting Mechanism". This will ensure "real, measurable and verifiable" emissions reductions and removals, they add.
Tencent and GenZero say they will prioritise projects in areas where finance is most needed, while also ensuring that these projects deliver co-benefits, such as improved local livelihoods.
According to both parties, a core focus of the partnership is to "enhance transparency and rebuild trust" in international carbon markets.
To achieve this, Tencent and GenZero will collaborate on "de-risking" high-quality carbon projects through the support of pre-feasibility studies, strengthening market integrity with monitoring, reporting and verification (MRV) technology and improving liquidity.
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In addition, both parties say they will "continue to explore opportunities" by identifying climate solutions within their networks that could benefit from co-investment.
Frederick Teo, CEO of GenZero, says: "Tackling the challenge of climate change requires global collaboration. We are delighted to work with a like-minded partner like Tencent to accelerate the momentum for climate action. Tencent has already demonstrated considerable leadership in driving the next generation of climate technologies and we are delighted to have entered into this broad partnership that encompasses all three areas of our core approach: nature-based solutions, technology-based solutions, and carbon ecosystem enablers. Tencent's support will help address critical funding gaps to achieve regional net-zero goals."
Xu Hao, vice-president of Tencent's sustainable social value organisation, says: "Addressing climate change requires innovative collaboration and sustained effort across industries. We are delighted to partner strategically with GenZero, a global leader in accelerating climate solutions. Leveraging our digital capabilities and GenZero's expertise, we aim to enhance carbon market transparency, promote innovative climate technologies, and deploy blended finance models to accelerate the global transition to net-zero, while creating meaningful impact for communities."
