Singapore, the Philippines establish carbon credit transfer framework

[SINGAPORE] A legally binding framework was established between Singapore and the Philippines on Thursday (Apr 30) to govern the generation and transfer of carbon credits from carbon mitigation projects.

The implementation agreement was signed between Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations Grace Fu and the Philippines’ Department of Environment and Natural Resources Secretary Juan Miguel T Cuna during the Asean Climate Week in Manila.

The carbon credits collaboration falls under Article 6 of the Paris Agreement, noted a statement by the Ministry of Trade and Industry (MTI).

Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rule book.

The statement noted that carbon mitigation projects authorised under the agreement will promote sustainable development and deliver tangible benefits to local communities, such as the creation of jobs, enhanced energy security and reduction of environmental pollution.

Both countries’ climate goals will be advanced via the collaboration, by allowing financing to unlock greater “mitigation potential” in the Philippines, it added.

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Fu said: “The agreement will deepen collaboration between the two countries, channel climate finance towards impactful projects in the Philippines and unlock new opportunities in carbon markets for businesses and local communities.”

MTI said that information on the process for authorisation of these carbon credits projects and eligible carbon crediting methodologies under the agreement will be published in due course.