Singapore and Malawi have strengthened their climate cooperation by signing a Memorandum of Understanding (MoU) on carbon market collaboration under Article 6 of the Paris Agreement. The agreement was formalised on the sidelines of COP30 by Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations, Grace Fu, and Malawi’s Minister of Natural Resources, Energy and Mining, Dr Jean Mathanga.
The MoU signals both countries’ intent to work together on mechanisms aligned with Article 6, which enables nations to cooperate internationally to meet emissions-reduction targets set out in their Nationally Determined Contributions (NDCs). It lays the groundwork for a legally binding Implementation Agreement that will establish a bilateral framework for the international transfer of correspondingly adjusted carbon credits.
The forthcoming Implementation Agreement will outline the criteria and procedures for transferring credits under Article 6. When operationalised, it will allow carbon-tax liable companies in Singapore to purchase eligible carbon credits generated in Malawi to offset up to 5% of their taxable emissions.
Under the partnership, Singapore and Malawi will jointly identify potential Article 6-compliant mitigation projects that uphold environmental integrity, promote sustainable development and support both countries in achieving their respective NDCs.
Singapore, which has set a national target of achieving net-zero emissions by 2050, emphasised that international partnerships are a key pillar of its climate strategy. The country has been rapidly expanding its global network of Article 6 collaborations.
In addition to Malawi, Singapore has signed similar MoUs with Cambodia, Colombia, Costa Rica, the Dominican Republic, Fiji, Kenya, Laos, Malaysia, Mongolia, Morocco, the Philippines, Senegal, Sri Lanka and Zambia. It has also concluded legally binding Implementation Agreements with Bhutan, Chile, Ghana, Mongolia, Papua New Guinea, Paraguay, Peru, Rwanda, Thailand and Vietnam.
The agreement with Malawi marks another step in Singapore’s effort to advance high-integrity carbon markets and deliver greater international cooperation to accelerate global climate action.
