Singapore, Papua New Guinea ink deal for carbon credits collaboration

The deal comes following the memorandum of understanding signed at the COP27. 

The governments of Singapore and Papua New Guinea signed an implementation agreement on carbon credits on the sidelines of the 2023 United National Climate Change Conference (COP28), the maiden implementation deal for Singapore.

In a statement, the Ministry of Industry and Trade said the agreement laid out the binding framework and processes for the generation and international transfer of carbon credits in line with the Paris Agreement.

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The implementation deal was signed by Singapore's Minister for Sustainability and the Environment Grace Fu and Papua New Guniea Minister of Environment, Conservation and Climate Change Simo Kilepa.

Under the agreement, as part of Singapore’s cooperation, project developers are mandated to cancel 2% of the carbon credits in the implementation agreement at the first issuance to ensure additional contribution to the mitigation of global emissions.

The project developers are also required to contribute to Papua New Guinea’s climate adaption, equivalent to a 5% share of proceeds or authorised carbon credits.

Singapore-based carbon tax-liable firms can also source eligible International Carbon Credits under the agreement to offset up to 5% of their taxable emissions. Doing so will help access new opportunities in carbon services and sustainability solutions, reinforcing the Lion City’s status as a carbon services and trading hub.