Singapore’s Ministry of Trade and Industry (MTI) announced on November 2024 during the COP29 climate summit that it has successfully concluded negotiations on a bilateral carbon trading agreement with Peru. This Implementation Agreement (IA), aligned with Article 6 of the Paris Agreement, will enable Singapore to purchase carbon credits from Peru, marking a significant milestone in the country’s efforts to combat climate change. Minister for Sustainability and the Environment, Ms. Grace Fu, highlighted the importance of this partnership in achieving climate targets through international cooperation and expressed optimism that the private sector would leverage this agreement to develop carbon credit projects.
The agreement builds on a 2022 memorandum of understanding between Singapore and Peru, focusing on enhancing mitigation efforts and scaling effective climate solutions. It establishes a framework for generating and transferring Article 6-compliant carbon credits internationally, ensuring formidable accounting measures to prevent double counting. Singaporean companies facing carbon taxes will be able to purchase credits from Peru to offset up to 5% of their taxable emissions, contributing to Singapore’s broader goal of reducing its carbon footprint through innovative partnerships.
In addition to its collaboration with Peru, Singapore is actively engaging with over 20 countries on carbon markets, having signed similar agreements with nations such as Papua New Guinea and Ghana. The MTI emphasized Singapore’s commitment to transparency and accountability in carbon markets, aiming to position itself as a leader in global carbon trading. This strategic approach not only addresses local sustainability challenges but supports global climate goals as well, thereby reinforcing the value of international cooperation in building a sustainable future.
(Source: Carbon Credits)
