Introduction

Singapore has been actively engaging likeminded countries on carbon credits collaboration aligned with Article 6 of the Paris Agreement. This bilateral cooperative approach enables us to achieve emissions targets set out in our NDCs, while promoting sustainable development and environmental integrity. This approach is also underpinned by a legally binding framework, known as an Implementation Agreement, signed between Singapore and host countries.

Memoranda of Understanding (MOU)
The MOU signals Singapore’s and host countries’ intent to collaborate on carbon markets, aligned with Article 6 of the Paris Agreement. Under the MOU, we will work towards a legally binding Implementation Agreement and identify potential Article 6-compliant mitigation activities which can support our achievement of respective NDCs.

Singapore has signed MOUs with the following countries:

Implementation Agreements (IA)

The IA sets out the bilateral framework for the international transfer of correspondingly adjusted carbon credits (i.e. mitigation outcomes) between host countries and Singapore. The framework will cover processes such as project authorisation, reporting requirements, and corresponding adjustments. Private sector players can then leverage this framework to develop carbon credit projects that issue ITMOs.

The IA framework will adhere to existing national frameworks of Singapore and host countries in order to bolster environmental integrity, contribute to climate action, and ensure that the projects are mutually beneficial.

Singapore has substantively concluded negotiations with or signed IAs with the following countries:

Share of Proceeds

In support of global climate ambition, Singapore’s bilateral agreements will require carbon credit developers to make a monetary contribution equivalent to 5% share of proceeds (SOP) of the Article 6-authorised carbon credits generated under our Implementation Agreements towards the host countries’ adaptation actions and/or UNFCCC Adaptation Fund. 

Contribution to Overall Mitigation of Global Emissions

Article 6-authorised carbon credits generated under the framework set up by Singapore will also support an overall mitigation of global emissions (OMGE). 2% of Article 6-authorised carbon credits generated are required to be cancelled at issuance, thereby preventing these credits from entering the market and contributing to an overall mitigation of global emissions.