GenZero, Tencent in Strategic Alliance to Boost Climate Finance and Carbon Market Integrity

SHENZHEN / SINGPAORE, May 6, 2025 – Tencent, one of the world’s leading internet and technology companies, has signed a Memorandum of Understanding (MoU) with GenZero, the Temasek-owned investment platform dedicated to accelerating global decarbonisation. The collaboration aims to scale up high-integrity climate finance and strengthen trust in international carbon markets.

Under the terms of the agreement, Tencent will have the opportunity to offtake at least one million verified, high-quality carbon credits from GenZero’s portfolio over a period of 15 years. The credits represent an equivalent reduction of at least one million tonnes of greenhouse gas emissions, sourced from projects that also aim to deliver broader environmental and social benefits.

All carbon credits transacted under the partnership will adhere to leading international standards or the Paris Agreement Crediting Mechanism, ensuring that emissions reductions are real, measurable, and verifiable. The two organisations will focus on financing projects in regions where capital is most needed, while prioritising initiatives that generate co-benefits such as improved livelihoods for local communities.

A central pillar of the partnership is to improve transparency and rebuild confidence in global carbon markets. The two parties will work together to de-risk high-quality carbon projects through pre-feasibility studies, deploy robust monitoring, reporting and verification (MRV) systems, and develop mechanisms to enhance market liquidity.

Both Tencent and GenZero have also committed to identifying and scaling innovative climate solutions, leveraging their respective networks to uncover co-investment opportunities in nature-based solutions, decarbonisation technologies, and other carbon ecosystem enablers.

Frederick Teo, CEO of GenZero, said: “Tackling the challenge of climate change requires global collaboration. We are delighted to work with a like-minded partner like Tencent to accelerate momentum for climate action. Tencent has already shown significant leadership in advancing the next generation of climate technologies, and this broad partnership touches all three pillars of our strategy—nature-based solutions, technology-based solutions, and carbon ecosystem enablers. Their support will be instrumental in addressing critical funding gaps and driving the scale-up of carbon markets, particularly in the Asia-Pacific region.”

Xu Hao, Vice President of Tencent’s Sustainable Social Value Organisation, added: “Addressing climate change demands innovative partnerships and sustained cross-sectoral efforts. We are pleased to collaborate strategically with GenZero, a recognised leader in advancing climate solutions. By combining our digital capabilities with GenZero’s expertise, we hope to enhance transparency in carbon markets, promote cutting-edge climate technologies, and deploy blended finance models that accelerate the global transition to net-zero — while delivering tangible benefits to communities.”

The partnership marks a significant step in aligning capital and technological capabilities to meet pressing climate goals, with a strong emphasis on integrity, impact, and regional relevance.