Singapore and Vietnam ink carbon credits implementation deal

This establishes a framework for the generation of carbon credits from relevant projects.

Singapore and Vietnam have signed an implementation agreement on carbon credits collaboration under Article 6 of the Paris Agreement.

This is the city-state’s ninth carbon credits implementation deal, following agreements with Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay and Thailand.

The agreement establishes a legally binding framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement. Project developers can leverage this framework to develop projects that are aligned with the Article 6 rulebook.

“The carbon mitigation projects authorised under this 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,” the Ministry of Trade and Industry said in a statement.

Singapore is committed to channelling the value equivalent to 5% share of proceeds from authorised carbon credits towards climate adaptation measures in Vietnam. The city-state is also committed to having 2% of the adjusted carbon credits authorised under this implementation agreement cancelled at first issuance.

The carbon credits that are cancelled cannot be sold, traded or counted towards any country’s emission targets, and serve as a contribution towards a net reduction of global emissions.