On 16 September 2025, the National Climate Change Secretariat (NCCS) and the Ministry of Trade and Industry (“MTI“) announced that Singapore will contract 2.175 million tonnes of high-quality nature-based carbon credits from four projects in Peru, Paraguay and Ghana. This award is the result of a request for proposal (“RFP“) launched in September 2024 for nature-based carbon credits to meet Singapore’s 2030 Nationally Determined Contribution (“NDC“) under the Paris Agreement.
Role of Article 6 Carbon Credits for Singapore’s 2030 NDC: Singapore has set its goal to reduce emissions to around 60 MtCO2e in 2030 after peaking emissions earlier. Article 6 carbon credits will serve as a complementary decarbonisation pathway to other primary efforts in reducing emissions reduction, including carbon tax as a key enabler and technological measures such as solar deployment, renewable energy imports, and carbon capture and storage. To source for these credits, Singapore uses two approaches – through direct government procurement, such as this successful RFP, and through carbon tax-liable facilities under the International Carbon Credit framework. The credits procured in this round of award will be used across 2026 to 2030 for the purpose of meeting the 2030 NDC. A second RFP for Article 6-compliant credits will be launched later in 2025.
Selecting Projects with Nature-Based Solutions (“NBS”): As a result of this RFP, Singapore has decided to contract NBS carbon credits from four NBS projects, which must demonstrate additionality, low leakage, permanence, and community co-benefits. They must use bilaterally agreed methodologies and be authorised under government-to-government Implementation Agreements (“IAs”), which are legally binding. Project proponents should note that while Singapore takes reference from internationally recognised carbon crediting programmes and methodologies, the eligibility list may vary across IAs as they take into account each host country’s conditional NDC measures as well as other domestic requirements and considerations.
The selected projects are set out below.
- Peru
- Kowen Antami REDD+ (VCS 5394) on indigenous-led forest protection; and
- Together for Forests REDD+ (VCS 5442) on land tenure security, agroforestry, and biodiversity.
REDD+ is a framework developed under the Paris Agreement which refers to “Reducing Emissions from Deforestation and forest Degradation, plus the conservation, sustainable management of forests, and enhancement of forest carbon stocks”.
- Paraguay
- Boomitra Grassland Restoration (VCS 3291) on soil carbon enhancement via rotational grazing.
- Ghana
- Kwahu Landscape Restoration (VCS 5432) on reforestation of degraded lands with native species.
Please refer to the MTI press release titled “Singapore will contract high-quality nature-based carbon credits from four projects in Ghana, Paraguay and Peru” (available on the MTI website at mti.gov.sg) for more information.
As Singapore is setting its sight on facilitating opportunities for Article 6 carbon credits development and trade, this presents a growth opportunity for companies in the carbon services and trading sector. Singapore has expressed its intention in using Article 6 carbon credits to address residual emissions reductions required to meet its subsequent 2035 NDC as well (please refer to our February 2025 Legal Update titled “Singapore Raises Emissions Targets in 2035 to Achieve Net-Zero Emission by 2050” for more details). We can expect continued policy and regulatory support for the sector over the longer term. Parties involved along the life cycle of carbon projects such as project development, financing as well as services and technology solutions for monitoring, reporting, and verification can approach the Rajah & Tann Sustainability team of lawyers for legal solutions.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
