Singapore and Bhutan ink carbon credits cooperation

This deal will accelerate climate action through increased funding for mitigation.

Singapore and Bhutan have signed an implementation agreement establishing a framework for carbon credit cooperation under Article 6 of the Paris Agreement.

In a statement, the Ministry of Trade and Industry (MTI) said the framework will focus on the transfer of carbon credits generated from carbon mitigation projects. Project developers can leverage this to develop carbon credit projects that are aligned with the Article 6 rulebook, it added.

The agreement, signed by Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations Grace Fu and Bhutan’s Minister of Energy and Natural Resources Gem Tshering, is seen to boost both countries’ climate ambitions by directing financing towards additional mitigation efforts.

“The carbon mitigation projects authorised under the Implementation Agreement will promote sustainable development and deliver tangible benefits to local communities, such as creation of jobs, improved access to clean water, enhanced energy security, and reduction of environmental pollution,” MTI said.

This cooperation marks Singapore’s first implementation agreement with a carbon-negative country.

“This collaboration strengthens our shared vision for a greener and more sustainable future, and accelerate the global green transition,” Fu said.