Overview

Singapore has been actively engaging likeminded countries on carbon credits collaboration aligned with Article 6 of the Paris Agreement. This bilateral cooperative approach would enable us to achieve emissions targets set out in our NDCs, while promoting sustainable development and environmental integrity. It will also be underpinned by a legally binding framework, known as an Implementation Agreement, signed between Singapore and host countries.

In support of global climate ambition, Singapore’s bilateral agreements will require carbon credit developers to make a monetary contribution equivalent to 5% of the share of proceeds (SOP) from Article 6-authorised carbon credits generated under our Implementation Agreements towards the host countries’ adaptation actions and/or UNFCCC Adaptation Fund.

Article 6 transactions through Singapore will also support an overall mitigation of global emissions (OMGE). 2% of Article 6-authorised carbon credits are required to be cancelled at issuance, thereby preventing these credits from entering the market and contributing to an overall mitigation of global emissions.

Beyond the carbon crediting period, the mitigation outcomes generated could be accrued to the host countries’ future NDCs.