On 19 August 2025, Singapore signed its first Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement with an Association for Southeast Asian Nations (ASEAN) country, Thailand (“Implementation Agreement“).
Key features of this Implementation Agreement are as follows:
- Framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement.
- Correspondingly adjusted carbon credits authorised under this Implementation Agreement may be used for various purposes, such as:
- to offset up to 5% of a company’s taxable emissions under Singapore’s International Carbon Credits (ICC) framework from 1 January 2024, subject to eligibility; and
- to comply with binding mandates such as Nationally Determined Contributions (NDCs) and other international mitigation purposes, e.g. the requirements under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
- Singapore has committed to channelling the value equivalent to 5% share of proceeds from authorised carbon credits towards climate adaptation measures in Thailand.
- As a contribution towards a net reduction of global emissions, Singapore is committed to having 2% of the correspondingly adjusted carbon credits authorised under this Implementation Agreement cancelled at first issuance. These carbon credits that are cancelled cannot be sold, traded, or counted towards any country’s emission targets.
Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook. 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. For more information, please refer to the media release titled “Singapore signs Implementation Agreement on carbon credits collaboration with Thailand“.
Small and medium-sized enterprises (SMEs) and mid-sized enterprise developing carbon and nature-based projects or supporting solutions can tap on our environmental, social and governance (ESG) legal fee subsidy for environmental or climate related legal advisory under the Sustainability Legal Catalyst Programme with Enterprise Singapore. Terms and conditions apply. You can reach out to us at [email protected].
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