Singapore and the Philippines have formally signed an Implementation Agreement (IA) to collaborate on carbon credits, marking a significant step in regional climate cooperation. The agreement, signed by Singapore’s Minister for Trade and Industry Gan Kim Yong and the Philippines’ Secretary of the Department of Environment and Natural Resources Maria Antonia Yulo-Loyzaga, establishes a framework for the transfer of carbon credits aligned with Article 6 of the Paris Agreement.
The collaboration is designed to support both nations in achieving their respective Nationally Determined Contributions (NDCs) while fostering sustainable development and high-quality carbon market activities in the Southeast Asian region.
Under the newly signed IA, the two nations will work together to identify and develop carbon credit projects that meet rigorous international standards for environmental integrity. This includes ensuring that credits are real, additional, and verified, with a focus on avoiding double counting through robust “corresponding adjustments.”
The agreement outlines the criteria for projects that can generate carbon credits, which may include nature-based solutions such as reforestation and peatland restoration, as well as technology-based initiatives like renewable energy and energy efficiency improvements.
“This partnership with the Philippines underscores Singapore’s commitment to building a robust global carbon market,” said Minister Gan Kim Yong. “By working together, we can unlock the potential for high-integrity carbon credits to drive meaningful climate action and support our transition to a low-carbon future.”
The Singapore-Philippines IA is part of Singapore’s broader strategy to establish a network of international carbon credit partnerships. Singapore has previously signed similar agreements and Memoranda of Understanding (MOUs) with several other countries, including Vietnam, Papua New Guinea, and Bhutan.
For the Philippines, the agreement offers a pathway to attract international investment into its vast natural resources and emerging green technology sectors. Secretary Yulo-Loyzaga emphasised that the collaboration would not only assist in meeting climate targets but also provide co-benefits such as biodiversity conservation and economic opportunities for local communities.
Following the signing, a joint work programme will be established to facilitate the implementation of the agreement. This will involve the exchange of best practices, the development of carbon credit methodologies, and the establishment of a streamlined process for the authorisation and transfer of credits.
The collaboration is expected to provide a clear signal to project developers and investors that both Singapore and the Philippines are open for business in the high-integrity carbon market. As the global focus on Article 6 mechanisms intensifies ahead of upcoming climate summits, this agreement serves as a blueprint for bilateral cooperation in the pursuit of global net-zero goals.
