Singapore, Bhutan ink MOU for carbon credits partnership

They will sign an agreement for the international transfer of carbon credits.

Singapore and Bhutan signed a memorandum of understanding (MOU) for collaboration on carbon credits, reinforcing their commitment to support climate action.

In a statement, the Ministry of Trade and Industry said the MOU, signed between Singapore’s Minister Gan Kim Yong and Bhutan’s Minister for Energy and Natural Resources Loknath Sharma, strengthens the countries' cooperation on carbon credit in line with Article 6 of the Paris Agreement.

Under the agreement, Singapore and Bhutan will sign a legally-binding bilateral agreement that establishes a framework for the international transfer of adjusted carbon credit by end-2023.

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“Effective partnership between countries is important in addressing the global climate challenge. This is the first MOU that Singapore is signing with a carbon-negative country,” Gan said. 

“Through this MOU, Singapore and Bhutan intend to collaborate on carbon credits aligned to Article 6 of the Paris Agreement, which will enable us to accelerate decarbonisation, and generate mutual benefits including growing each other’s green economy,” he added.

Article 6 of the Paris Agreement enables countries to work together in achieving emissions targets under their nationally determined contribution.