Agreement Overview
The Singapore government signed an implementation agreement with Vietnam on carbon credit cooperation on September 16, 2025. The implementation agreement establishes a framework for transferring carbon credits generated from carbon mitigation projects in accordance with Article 6 of the Paris Agreement. Information regarding the approval of carbon credit projects and carbon credit methodologies under the implementation agreement will be announced in due course.
Carbon Credit Utilization System Details
Adjusted carbon credits under this implementation agreement can be used to offset up to 5% of companies' taxable emissions under Singapore's International Carbon Credit (ICC) Framework. They can also be used for compliance with internationally mitigation purposes such as Nationally Determined Contributions (NDCs) and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Additionally, Singapore has established a mechanism under the implementation agreement to allocate an amount equivalent to 5% of certified carbon credit revenues to Vietnam's climate adaptation measures.
Singapore's International Carbon Cooperation Strategy
For Singapore, the implementation agreement with Vietnam marks the 9th such agreement, following Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay, and Thailand. Singapore has also signed memoranda of understanding (MOUs) with Cambodia, Laos, Malaysia, and the Philippines in Southeast Asia, advancing efforts toward legally binding implementation agreements.
Expansion of Nature-Based Carbon Credit Procurement
On the same day, MTI and the National Climate Change Secretariat (NCCS) announced the procurement of nature-based carbon credits generated from four projects in three countries: Ghana, Paraguay, and Peru. The projects aim to restore degraded land through forest protection and deforestation prevention in Peru, soil carbon sequestration in grasslands in Paraguay, and agroforestry and regenerative planting in Ghana.