Singapore, Sri Lanka sign MOU for carbon credits collaboration

The partnership is in line with the Article 6.2 of the Paris Agreement.

The governments of Singapore and Sri Lanka signed a memorandum of understanding (MOU) to mark their collaboration on carbon credits.

In a statement, the Ministry of Trade and Industry said both countries are mandated by the MOU to work together on carbon credits in line with Article 6.2 of the Paris Agreement and related carbon market efforts.

This partnership will include the exchange of best practices and the identification of mutually beneficial projects. They will also look into potential partnership opportunities in carbon markets with third countries.

The MOU was signed by the Singapore Permanent Secretary (Development) of the Ministry of Trade and Industry Beh Swan Gin and Sri Lanka High Commissioner to Singapore Sashikala Premawardhane.

“Singapore and Sri Lanka’s cooperation on carbon credits aims to advance climate action. This MOU enables both countries to make progress on our respective climate targets while enabling mutually beneficial outcomes such as creating new jobs in the green economy and enhancing biodiversity protection,” Beh said.

The two markets are also mandated by the MOU to work on a legally binding Implementation Agreement for the international transfer of correspondingly adjusted carbon credits which will include criteria and processes for carbon credit transfer. When completed, carbon tax-liable firms in Singapore can buy carbon credits from eligible projects to offset up to 5% of their taxable emissions.

The Lion City has signed similar partnerships with Bhutan, Cambodia, Chile, Colombia, Dominican Republic, Ghana, Kenya, Mongolia, Morocco, Papua New Guinea, Peru and Vietnam.