SINGAPORE will work with Mongolia to identify potential carbon projects that can yield carbon credits supporting the two countries’ climate ambitions, said the Ministry of Sustainability and the Environment (MSE) on Sunday (Jun 11).

MSE said that an interagency working group will be established with Mongolia’s Ministry of Environment to implement a memorandum of understanding (MOU) that was signed last Friday.

The MOU was signed by Minister for Sustainability and the Environment Grace Fu and Mongolia’s Minister for Environment and Tourism Bat-Erdene Bat-Ulzii. Fu said the MOU underscores the two countries’ commitment to collaborate on carbon markets, aligned with Article 6 of the Paris Agreement.

Article 6 establishes a carbon accounting mechanism known as “corresponding adjustment”, which ensures that countries correct their country-to-country carbon transfer and trading mechanisms towards their Nationally Determined Contributions (NDCs). This ensures that one carbon credit is not claimed by more than one entity.

NDCs are a country’s commitment to reduce greenhouse gas emissions and adapt to its climate impacts.

“Such cooperation is critical for countries to advance climate ambition and accelerate climate action,” Fu added.

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The MOU will precede a legally-binding agreement that sets out a bilateral framework for the international transfer of correspondingly adjusted mitigation outcomes, MSE said.

MSE, meanwhile, said Singapore is committed to ensure the integrity, quality, and transparency of carbon markets and supports the advancement of global climate action. This includes robust and independent accounting, and the avoidance of double counting, including requiring corresponding adjustments, it pointed out.

Singapore had in October 2022 announced a commitment to reach net zero emissions by 2050. This entails reducing its emissions to around 60 million tonnes of carbon dioxide equivalent in 2030 after peaking emissions earlier.