Singapore signed its fifth and sixth Implementation Agreements on carbon credits collaboration under Article 6 of the Paris Agreement (“Article 6“) with Chile on 7 April 2025 and Rwanda on 6 May 2025. Singapore has been actively engaging like-minded countries on carbon credits collaboration aligned with Article 6. The latest Implementation Agreements with Chile and Rwanda follow earlier Implementation Agreements with Papua New Guinea, Ghana, Bhutan and Peru. Read our March 2025 NewsBytes article titled “Singapore’s Bilateral Implementation Agreements for Carbon Credits Collaborations: Bhutan and Peru” for further information.
Singapore, Chile and Rwanda will now begin the ratification process and operationalise the respective Implementation Agreement. Under each Implementation Agreement, a framework will be developed for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6. The framework will cover processes such as project authorisation, reporting requirements, and corresponding adjustments, and can be leveraged by project developers to cultivate high-quality carbon credit projects that are aligned with the Article 6 rulebook. In due course, information on the authorisation process of these carbon credits projects and eligible carbon crediting methodologies under each Implementation Agreement will be published.
As part of Singapore’s Article 6 cooperation, under each Implementation Agreement project, developers will be required to:
- cancel 2% of the carbon credits authorised under the respective Implementation Agreement at first issuance to ensure additional contribution to overall mitigation of global emissions; and
- contribute equivalent to 5% share of proceeds or authorised carbon credits towards climate adaptation measures in Chile and Rwanda, respectively.
By directing financing towards unlocking additional carbon mitigation potential in Chile and Rwanda, the respective collaborations seek to advance Chile’s and Rwanda’s climate ambitions. The carbon mitigation projects authorised under the respective Implementation Agreement will promote sustainable development and aims to deliver tangible benefits to local communities, including job creation, improved access to clean water, enhanced energy security, and the reduction of environmental pollution.
Under each Implementation Agreement, authorised correspondingly adjusted carbon credits may be used for various purposes, including:
- offsetting, subject to eligibility, up to 5% of a Singapore-based carbon tax-liable company’s taxable emissions under Singapore’s International Carbon Credits framework (“ICC“) from 1 Jan 2024; and
- complying with binding mandates such as Nationally Determined Contributions and other international mitigation purposes.
Project developers and companies impacted by the ICC framework may reach out to our team regarding this development.
Click on the following links for more information (available on the Ministry of Trade and Industry, Singapore (“MTI“) website at www.mti.gov.sg):
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