On 30 April 2026, Singapore and the Philippines signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement, during the ASEAN Climate Week held in Manila.
The Implementation Agreement establishes a legally binding bilateral framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement. It represents the Philippines’ first such Implementation Agreement.
Carbon credits authorised under the Implementation Agreement may be used for a range of purposes, including:
- Carbon tax-liable companies in Singapore may offset up to 5% of taxable emissions under Singapore’s International Carbon Credits framework.
- Complying with binding mandates such as Nationally Determined Contributions and the Carbon Offsetting and Reduction Scheme for International Aviation.
Singapore has committed to channelling a 5% share of proceeds from authorised carbon credits towards climate adaptation measures in the Philippines, and to the cancellation of 2% of correspondingly adjusted carbon credits at first issuance as a contribution towards a net reduction of global emissions.
The collaboration is intended to advance both countries’ climate objectives while promoting sustainable development, job creation, enhanced energy security, and the reduction of environmental pollution in the Philippines.
Both countries will set out processes for the authorisation of carbon credit projects and the application of corresponding adjustments to prevent double counting of emissions reductions in national greenhouse gas inventories. Information will be made available on www.go.gov.sg/article6 in due course.
Click on the following link for more information:
- Ministry of Trade and Industry (“MTI“) Press Release titled “Singapore signs the Philippines’ first Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement” (available on the MTI website at www.mti.gov.sg)
Singapore enterprises or investors looking to secure decarbonisation projects can tap on our environmental, social, and governance (ESG) legal fee subsidy under the Sustainability Legal Catalyst Programme with Enterprise Singapore. Terms and conditions apply. You can reach out to us at [email protected].
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