SINGAPORE, Aug 19 — Singapore signed an implementation agreement on carbon credits collaboration with Thailand on Tuesday, marking the city-state’s first such agreement with an Asean country, according to the Trade and Industry Ministry (MTI).
The agreement was signed by Singapore’s Manpower Minister and Minister-in-Charge of Energy, Science, and Technology Tan See Leng and Thailand’s Natural Resources and Environment Minister Chalermchai Sri-on, on the sidelines of the 9th Singapore Regional Business Forum (SRBF) in Bangkok, Thailand.
“The Implementation Agreement establishes a framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement,” MTI said in a statement.
Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook.
It added that the agreement would advance both countries’ climate ambitions by directing financing towards unlocking additional mitigation potential in Thailand.
The carbon mitigation projects authorised under this agreement will promote sustainable development and deliver tangible benefits to local communities, including creating jobs, improving waste management, enhancing energy efficiency, and reducing environmental pollution.
Tan said this agreement is a testament to the country's strong bilateral ties and collective resolve to implement the Paris Agreement in practical and impactful ways.
“This year marks the 60th anniversary of our diplomatic relations, and it is especially meaningful that climate action is becoming an increasingly important pillar of our collaboration, reflecting our shared commitment to addressing global challenges,” he said.
Tan said he looked forward to this agreement serving as a pathfinder for the region, demonstrating how Southeast Asia can develop and scale high-quality carbon credit projects that will drive meaningful emissions reductions, while unlocking new opportunities in the carbon market for businesses.
