Singapore, Philippines sign carbon credits deal under Article 6 framework

The deal sets rules for carbon credit projects and cross-border transfers between both countries.

Singapore and the Philippines have signed an Implementation Agreement on carbon credits cooperation under Article 6 of the Paris Agreement, setting out rules for how carbon credits can be generated and transferred between the two countries.

According to Singapore’s Ministry of Trade and Industry (MTI), the agreement provides a legally binding framework for carbon mitigation projects that can generate credits under Article 6 which can then be transferred between Singapore and the Philippines.

The agreement was signed during ASEAN Climate Week in Manila which was hosted virtually by the Philippines from April 27 to May 1. 

Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations Grace Fu, and Philippines Environment Secretary Juan Miguel T. Cuna signed the agreement.

The MTI said in a press release that project developers can use the framework to develop carbon credit projects that follow Article 6 rules with details on approval processes and eligible methodologies released later.

Fu said the agreement strengthens cooperation between both countries and supports climate financing flows.

“This Agreement will deepen collaboration between our two countries, channel climate finance towards impactful projects in the Philippines and unlock new opportunities in carbon markets for businesses and local communities,” she said.

Cuna said the agreement reflects joint technical work and cooperation between both sides.

“For the Philippines, entering into this Implementation Agreement under Article 6.2 is a strategic decision – one grounded in our national priorities, our development aspirations, and our commitment to global climate action,” he said.

The MTI said the projects under the agreement are expected to support job creation, improve energy security, reduce pollution, and deliver other local benefits in the Philippines.