Landmark pact unlocks climate finance, emissions sharing across Southeast Asia.
MANILA — The Philippines and Singapore formally inked a legally binding Implementation Agreement on carbon credits cooperation on April 30, 2026, creating a bilateral framework for the generation and international transfer of high-integrity carbon credits, the Philippine News Agency reported.
Signed during ASEAN Climate Week in Manila, the pact operates under Article 6.2 of the Paris Agreement. According to details released by the Department of Environment and Natural Resources (DENR), it establishes a Joint Committee, a pre-approved list of carbon crediting methodologies, and governance systems aligned with the Paris Agreement’s Enhanced Transparency Framework.
As per the same source, Singapore-based companies can use authorized credits to offset up to 5 percent of their taxable emissions. Singapore will channel 5 percent of proceeds from these credits toward climate adaptation measures in the Philippines, while another 2 percent of credits will be canceled to ensure a net reduction in global emissions.
“This Agreement will deepen collaboration between our two countries, channel climate finance towards impactful projects in the Philippines and unlock new opportunities in carbon markets for businesses and local communities,” Singapore’s Minister for Sustainability and the Environment Grace Fu said, as quoted by the Singapore Business Review. Philippine Environment Secretary Juan Miguel Cuna, in a statement carried by BusinessMirror, called the pact “a strategic decision—one grounded in our national priorities, our development aspirations, and our commitment to global climate action.”
The agreement marks the Philippines’ first bilateral carbon market deal and Singapore’s 11th overall, the Embassy of the Philippines in Singapore noted, adding that sectors expected to benefit include renewable energy, waste management, methane reduction, nature-based solutions, and climate-smart agriculture. Singapore Ambassador Constance See remarked, according to the Philippine News Agency, “The Philippines is one of the most mega-biodiverse countries in the world… exceptionally well-positioned to be a major player in the global carbon market.”
Both governments will now activate the Joint Committee, integrate national registries for tracking Internationally Transferred Mitigation Outcomes, and open the formal project authorization process, the DENR further outlined.
References
“PH, Singapore ink landmark carbon credits deal,” Philippine News Agency, May 1, 2026. https://www.pna.gov.ph/articles/1274101
“Philippines and Singapore Sign Article 6.2 Implementation Agreement at ASEAN Climate Week,” DENR, April 30, 2026. https://denr.gov.ph/news-events/philippines-and-singapore-sign-article-6-2-implementation-agreement-at-asean-climate-week/
“Singapore, Philippines ink first bilateral carbon credits pact under Paris Agreement,” BusinessMirror, May 1, 2026. https://businessmirror.com.ph/2026/05/01/singapore-philippines-ink-first-bilateral-carbon-credits-pact-under-paris-agreement/
“Singapore, Philippines sign carbon credits deal under Article 6 framework,” Singapore Business Review, May 4, 2026. https://sbr.com.sg/news/singapore-philippines-sign-carbon-credits-deal-under-article-6-framework
“Philippines and Singapore Ink Implementation Agreement on Carbon Credits Collaboration,” Embassy of the Philippines in Singapore, April 30, 2026. https://www.philippine-embassy.org.sg/philippines-and-singapore-ink-implementation-agreement-on-carbon-credits-collaboration/
