Singapore continues to strengthen its initiatives in carbon markets. Three recent developments are highlighted below.
Implementation Agreement with Mongolia
On 6 October 2025, Singapore and Mongolia signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement. The Implementation Agreement establishes a legally binding framework for the generation and transfer of carbon credits from carbon mitigation projects. Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook.
Singapore is now party to ten Implementation Agreements on carbon credits collaboration following earlier agreements with Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay, Thailand and Vietnam.
The key features of the Implementation Agreement with Mongolia include:
- Authorisation process: Both countries will set out the process to seek authorisation for carbon credit projects and corresponding adjustments for implemented mitigation outcomes.
- Use of carbon credits: Correspondingly adjusted carbon credits authorised under this Implementation Agreement may be used for various purposes, such as: (i) to offset up to 5% of a company’s taxable emissions under Singapore’s International Carbon Credits framework from 1 January 2024, subject to eligibility; and (ii) to comply with binding mandates such as Nationally Determined Contributions and other international mitigation purposes, e.g. the requirements under the Carbon Offsetting and Reduction Scheme for International Aviation.
- Channelling of proceeds: Singapore is committed to channelling the value equivalent to 5% share of proceeds from authorised carbon credits towards climate adaptation measures in Mongolia.
- Cancellation of carbon credits: As a contribution towards a net reduction of global emissions, Singapore is committed to having 2% of the correspondingly adjusted carbon credits authorised under this Implementation Agreement cancelled at first issuance. These cancelled carbon credits cannot be sold, traded or counted towards any country’s emission targets.
Call for Proposals for Technology-based and Nature-based Carbon Credits
In September 2025, Singapore awarded contracts for 2.175 million tonnes of high-quality nature-based carbon credits from four projects in Ghana, Paraguay and Peru (please refer to our September 2025 NewsBytes article titled “Singapore Secured Natured-Based Carbon Credits to Meet Paris Agreement Goals” for more details). On 31 October 2025, the Ministry of Trade and Industry (“MTI“) launched its second request for proposals for high quality carbon credits from the ten countries with which it has signed Implementation Agreements. Singapore is requesting carbon credits from both technology-based projects and nature-based projects. Interested parties are to submit their application by 4.00pm, 16 January 2026.
Applications Open for Carbon Credit Projects Under the Singapore-Peru Implementation Agreement
From 24 October 2025 onwards, interested parties may submit applications for their carbon credit projects in Peru to be authorised. The applications will be jointly reviewed by the Singapore and Peru governments on a rolling basis upon receipt. The Eligibility List of carbon crediting programmes and methodologies under the Singapore-Peru Implementation Agreement currently include those under Gold Standard for the Global Goals and Verra’s Verified Carbon Standard for cookstove-related projects, agriculture waste to energy projects, methane reduction from rice cultivation, e-waste material recovery, as well as forest restoration projects, among others. This is Singapore’s second call for project applications, after the call for project applications under the Singapore-Ghana Implementation Agreement was launched last year on 30 September.
Small and medium-sized enterprises and mid-sized enterprises developing or investing into carbon and nature-based projects or supporting solutions can tap on our Environmental, Social, and Governance (ESG) legal fee subsidy for environmental or climate related legal advisory under the Sustainability Legal Catalyst Programme with Enterprise Singapore. Terms and conditions apply. You can reach out to us at [email protected].
Click on the following links for more information (available on the MTI website at www.mti.gov.sg):
- MTI Press Release titled “Singapore signs Implementation Agreement on carbon credits collaboration with Mongolia”
- MTI Press Release titled “Singapore launches second request for proposals for high quality carbon credits”
- MTI Press Release titled “Singapore and Peru invite applications for carbon credit projects under their Implementation Agreement”
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