Singapore and Lao PDR ink MOU on carbon credits

The parties will exchange best practices and knowledge of carbon markets.

Singapore and Lao PDR signed a Memorandum of Understanding (MOU) to collaborate on carbon credits aligned with Article 6 of the Paris Agreement.

The agreement is part of a series of bilateral discussions between the two countries during Lao PDR Prime Minister Sonexay Siphandone’s official visit to Singapore. 

Under the MOU, both countries will work towards a legally binding bilateral framework for the international transfer of correspondingly adjusted carbon credits, exchange of best practices, and knowledge of carbon market mechanisms. 

“Carbon credit projects can help channel financing towards additional mitigation efforts while generating benefits for local communities, such as new jobs, improved energy security, and reduced environmental pollution. Our cooperation highlights both countries’ commitment to supporting each other’s net-zero ambitions and supports the acceleration of global climate action,” Grace Fu, minister for Sustainability and the Environment, said.