Singapore and Chile signed a Memorandum of Understanding (MOU) to collaborate on carbon markets and carbon pricing today. The MOU was signed by Permanent Secretary (Development) of the Ministry of Trade and Industry, Dr Beh Swan Gin and Secretary General of Foreign Policy of Chile’s Ministry of Foreign Affairs Ambassador Alex Wetzig during the latter’s visit to Singapore.
The MOU signals Singapore’s and Chile’s intent to collaborate on carbon markets and carbon pricing. The cooperation includes exchange of information, knowledge, best practice and experiences on carbon credits, carbon pricing, blue carbon, carbon services and trading ecosystem development such as national regulatory frameworks, and policies governing the management and development of greenhouse gas mitigation activities and resources, with a view to identifying possible collaboration opportunities in these areas for implementation.
Under the MOU, Singapore and Chile will work towards a legally binding Implementation Agreement that sets out a bilateral framework for the international transfer of correspondingly adjusted carbon credits1 aligned with Article 6.2 of the Paris Agreement. The Implementation Agreement will include the criteria and processes for transfer of carbon credits aligned with the Paris Agreement. When completed, carbon tax liable companies in Singapore will be able to purchase carbon credits from eligible projects to offset up to 5% of their taxable emissions.
Singapore and Chile will work together to identify potential Article 6-compliant mitigation activities, including emissions reduction and removal projects of mutual benefit and interest, which can support both countries to achieve their respective NDCs.
Singapore aims to achieve net zero emissions by 2050, and is committed to advancing global climate action through international collaboration with likeminded partners.
Singapore has signed similar MOU/Letter of Intent with Bhutan, Cambodia, Colombia, Dominican Republic, Ghana, Kenya, Mongolia, Morocco, Papua New Guinea, Peru, and Vietnam.
Sourced from Ministry of Trade and Industry Singapre