Singapore, Mongolia ink carbon credits deal

The deal sets out a framework for developing and trading carbon credits under Article 6 of the Paris Agreement.

Singapore and Mongolia have signed an implementation agreement on carbon credits collaboration.

The deal—signed by Singapore’s Minister for Sustainability and the Environment, Grace Fu, and Mongolia’s Minister of Environment and Climate Change, Batbaatar Bat—sets out a legally binding framework for developing and trading carbon credits under Article 6 of the Paris Agreement.

This is Singapore’s tenth such agreement, following similar deals with countries including Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay, Thailand, and Vietnam.

The framework allows project developers to create carbon credit projects that meet international standards. 

Details on the authorisation process and eligible methodologies will be released later.

Under the agreement, Singapore will direct the equivalent of 5% of the proceeds from approved carbon credits to support climate adaptation efforts in Mongolia.

Additionally, 2% of the authorised credits will be cancelled upon issuance, meaning they cannot be traded or used to meet any country’s emission targets—effectively contributing to a net global emissions reduction.