Chinese tech giant Tencent (HKG: 0700) has joined forces with Temasek-owned investment platform GenZero to reduce over one million tons of greenhouse gas emissions through a long-term carbon credit initiative.
Under the 15-year agreement, Tencent will have the option to purchase at least one million carbon credits from GenZero’s portfolio, marking a major step in supporting high-integrity climate solutions.
The collaboration aims to direct capital toward verified, high-impact environmental projects, particularly in regions where funding is most needed.
These projects will also provide co-benefits such as supporting local communities and improving livelihoods, GenZero, which is owned by Singapore’s Temasek, said in a statement on Tuesday.
To ensure the credibility of emissions reductions, the carbon credits will come from initiatives verified by leading international standards, including Verra, Gold Standard, or those aligned with Article 6 of the Paris Agreement.
This guarantees that credits represent real, measurable, and verifiable climate benefits.
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Both companies emphasized that restoring trust and transparency in global carbon markets is central to the partnership.
In recent years, carbon credits have faced growing scrutiny over quality and integrity.
To address this, Tencent and GenZero plan to use technologies for monitoring, reporting, and verification (MRV), and will conduct pre-feasibility studies to reduce risks in carbon project development.
The partnership also aims to explore wider investment opportunities by leveraging each party’s network and expertise.
GenZero CEO Frederick Teo stated the initiative aligns with the company’s focus on nature-based solutions, tech-driven innovations, and systems that enable the carbon ecosystem.
Tencent’s Xu Hao added that the partnership will help drive innovative climate solutions and financial models to accelerate the transition to net zero.
This move highlights a growing trend among major corporations to take measurable steps toward sustainability through credible climate financing.
