Virtual signing sets framework for joint carbon mitigation projects under Paris Agreement
On 16 September 2025, Singapore and Vietnam signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement, further strengthening bilateral cooperation in climate action. The agreement was signed virtually today by Singapore’s Minister for Sustainability and the Environment and Minister-in-Charge of Trade Relations, Grace Fu, and Vietnam’s Acting Minister of Agriculture and Environment, Tran Duc Thang.
This marks Singapore’s ninth Implementation Agreement on carbon credits, following earlier collaborations with Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay, and Thailand.
The Agreement provides a legally binding framework for the generation and transfer of carbon credits from mitigation projects aligned with the Article 6 rulebook. Developers will be able to leverage this framework to create high-quality projects, with details on authorisation processes and eligible methodologies to be released in due course.
As part of its commitments, Singapore will channel the equivalent of 5% of proceeds from authorised credits towards Vietnam’s climate adaptation efforts. Additionally, 2% of credits will be cancelled at first issuance, ensuring they cannot be traded or used towards emission targets, thus contributing directly to global emissions reduction.
Minister Fu highlighted the significance of the collaboration, stating, “Singapore and Vietnam are longstanding and like-minded partners. The signing of this Implementation Agreement marks an important new area of cooperation between our countries and creates new opportunities in our transition to a low-carbon economy. I am confident that this Agreement will catalyse the development of climate change mitigation activities that reduce emissions, foster more regional cooperation, and open up additional pathways towards sustainable development.”
Echoing this, Minister Tran Duc Thang remarked, “The Agreement signed today establishes a bilateral legal framework for Vietnamese organisations and enterprises to register greenhouse gas mitigation projects and generate carbon credits, which will be recognised and transferred to Singapore. This is a turning point that opens up new climate finance opportunities, encouraging investments in advanced technologies, clean energy transition, and sustainable smart agriculture.”
Beyond financing, the partnership aims to advance both nations’ climate ambitions while supporting Vietnam’s local communities through job creation, improved access to clean water, enhanced energy security, and reduced environmental pollution.
Source: MTI
