Analyses & Studies

Singapore and Thailand ink carbon credit collaboration

A framework has been developed for the generation and transfer of carbon credits.

Singapore and Thailand have signed an implementation agreement on carbon credits collaboration, the city-state's first with an ASEAN country.

According to the Ministry of Trade and Industry (MTI), the agreement is under Article 6 of the Paris Agreement. It was signed by Singapore’s Minister for Manpower and Minister-in-charge of Energy and Science & Technology Dr Tan See Leng, and Thailand’s Minister of Natural Resources and Environment, Chalermchai Sri-on.The Implementation Agreement establishes a framework for the generation and transfer of carbon credits from carbon mitigation projects. Project developers can leverage this to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook.

“The Implementation Agreement between Singapore and Thailand will advance both countries’ climate ambitions by directing financing towards unlocking additional mitigation potential in Thailand,” MTI said.

“The carbon mitigation projects authorised under this Implementation Agreement will promote sustainable development and deliver tangible benefits to local communities, such as the creation of jobs, improved waste management, enhanced energy efficiency, and reduction of environmental pollution,” it added.

Information on the process for authorisation of these carbon credits projects and eligible carbon crediting methodologies under the Implementation Agreement will be published in due course.

SOURCE: SINGAPORE BUSINESS REVIEW