In Short

• Singapore and Thailand have signed a deal for greenhouse gas mitigation.
• For Singapore, this is its first agreement with an ASEAN country in this regard.
• The agreement establishes a set of rules and processes for developing and transferring carbon credits between the two countries.

Two of Asia's fastest-growing economies, Singapore and Thailand, have recently signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement.

This is the first agreement of its kind that Singapore has entered with an ASEAN country, and also shows strong cooperation when it comes to climate action in the region. The signing took place at the 9th Singapore Regional Business Forum in Bangkok.

The agreement establishes a framework for generating and transferring carbon credits from projects that reduce carbon emissions in Thailand.

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Using the framework, project developers can create high-quality carbon credit projects pursuant to the Article 6 rulebook to make sure they are globally recognised and credible.

The countries will focus on a range of projects in areas including forestry, clean energy, and zero-emission transport. For Thailand, channelling funds into these projects will help unlock more opportunities for green development. On the other hand, Singapore will benefit from having access to verified carbon credits. This is mutually beneficial for them to advance their climate targets.

Not only does the deal aim to reduce carbon emissions, but for local communities in Thailand, it also promises tangible benefits. For example, it can bring employment generation, improved waste management, better energy efficiency, and a reduction in environmental pollution. This shows that carbon credit projects can tackle climate change as well as deliver social and economic benefits to people on the ground.

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Singapore’s Minister for Manpower and Minister-in-charge of Energy and Science & Technology, Dr Tan See Leng, said: “Singapore and Thailand have a longstanding partnership in trade, investment, and sustainable development. This year marks the 60th anniversary of our diplomatic relations, and it is especially meaningful that climate action is becoming an increasingly important pillar of our collaboration, reflecting our shared commitment to addressing global challenges.

“This Implementation Agreement is a testament to our strong bilateral ties and collective resolve to implement the Paris Agreement in practical and impactful ways.

“I look forward to this Agreement serving as a pathfinder for the region, demonstrating how Southeast Asia can develop and scale high-quality carbon credit projects that will drive meaningful emissions reductions, while unlocking new opportunities in the carbon market for businesses.”

Thailand’s Minister of Natural Resources and Environment, Chalermchai Sri-on, commented: “This cooperation under Article 6.2 with Singapore is not only a significant step for our two nations, but also a clear signal that ASEAN can drive high-quality, internationally aligned greenhouse gas mitigation.

“We value Singapore’s partnership in unlocking climate finance and advancing credible carbon credit projects in Thailand – from forestry and clean energy to zero-emission transport – that deliver environmental, economic, and social benefits for our people. Thailand is committed to becoming a hub for such projects and is ready to share our approach as a model for the region.”

Ends/

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Source: MTI Singapore