Implementation Agreements
Implementation Agreement
The Implementation Agreement (IA) sets out the bilateral framework for the international transfer of correspondingly adjusted carbon credits (i.e. mitigation outcomes) between host countries and Singapore. The framework will cover processes such as project authorisation, reporting requirements, and corresponding adjustments. Private sector players can then leverage this framework to develop carbon credit projects that issue Internationally Transferred Mitigation Outcomes (ITMOs).
The IA framework will adhere to the national frameworks of Singapore and host countries in order to bolster environmental integrity, contribute to climate action, and ensure that the projects are mutually beneficial.
Other key benefits of this bilateral cooperative approach include:
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Leverages existing carbon markets mechanisms – To operationalise the collaboration quickly, eligible carbon crediting methodologies from credible offset programmes (e.g., Verra, Gold Standard, America Carbon Registry, Global Carbon Council) will be used instead of setting up bespoke standards and methodologies.
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Authorised for all uses – All correspondingly adjusted carbon credits will be authorised for all uses, including countries’ NDC achievement and companies’ voluntary uses. This will facilitate the flow of carbon finances from a wider pool of demand to scale up climate action and ambition, while fostering the growth of high-integrity carbon markets.
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Contributes to adaptation actions – Article 6 is designed to increase countries’ ambitions for both mitigation and adaptation actions. In lieu of the Article 6 rulebook, Singapore has decided to contribute resources towards climate adaptation through bilateral cooperation. As such, all projects authorised under Singapore’s Implementation Agreements will have to contribute 5% of their share of proceeds or equivalent to the host countries’ adaptation needs and/or the UNFCCC Adaptation Fund.
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Contributes to Overall Mitigation in Global Emissions (OMGE) – Singapore requires all projects authorised under Singapore's Implementation Agreements to cancel 2% of correspondingly adjusted carbon credits to deliver OMGE, which is strongly encouraged under Article 6 rules. Cancellation ensures that these carbon credits will not be used towards the country's NDC, compliance requirements or voluntary targets, thereby serving the sole purpose of contributing to climate mitigation.
