Singapore and Indonesia have formalised an agreement to cooperate on carbon markets under Article 6 of the Paris Agreement, aiming to accelerate regional climate action and channel vital finance into high-integrity environmental projects.
The Memorandum of Understanding (MOU) was signed during the annual Singapore-Indonesia Leaders’ Retreat hosted by Indonesian President Prabowo Subianto. Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, and Indonesia’s Minister of Environment, Dr Mohammad Jumhur Hidayat, finalised the pact, which reinforces the bilateral green economy ties between the two nations.
Under the new agreement, both countries will exchange technical expertise and work towards a legally binding Implementation Agreement. The collaboration focuses on identifying high-integrity carbon credit projects that help both nations achieve their respective Nationally Determined Contributions (NDCs). Planned initiatives span from forest protection and coastal ecosystem restoration to the deployment of clean technology solutions. Crucially, the projects are designed to deliver tangible benefits to local and indigenous communities in Indonesia through job creation, income generation, and environmental protection.
Deputy Prime Minister Gan emphasised Singapore’s commitment to being a trusted partner in establishing credible and transparent carbon markets, noting that these projects will directly support the livelihoods of communities most affected by climate change.
Minister Jumhur welcomed the partnership as a significant step towards advancing high-integrity carbon market cooperation, highlighting its potential to mobilise investment for emissions reductions, biodiversity conservation, and ecosystem restoration across the region.
Industry leaders have also lauded the agreement. Meizani Irmadhiany, Senior Vice President and Executive Chair of Konservasi Indonesia, stated that the expanded cooperation would generate sustainable livelihoods whilst reversing biodiversity loss in irreplaceable forests and mangroves.
Choo Oi Yee, Chief Executive Officer of Climate Impact X, added that the partnership effectively bridges Indonesia’s vast carbon project opportunities with Singapore’s established market infrastructure, advancing the broader vision of an ASEAN Common Carbon Framework.
