Today, Gold Standard and the National Environment Agency of Singapore (NEA) signed an official agreement that would allow companies based in Singapore to use Gold Standard credits to meet part of their compliance obligations.
Further details pertaining to the eligibility requirements, which are so far known to include the necessity for corresponding adjustments, are yet to be disclosed by the Singaporean Government.
This partnership with NEA is of special significance, as this act of a national government enabling businesses in its jurisdiction to utilize credits issued from independent programs is accounted for under Article 6 of the Paris Agreement.
In turn, Article 6 of the Paris Agreement focuses on enabling national governments to use market and non-market based solutions to help transfer mitigation of the climate crisis, thus helping them reach their Nationally Determined Contributions (NDCs).
Hence, it is a step towards making it easier for both companies and entire countries to meet their compliance obligations and enhance their positive impact on climate change.
As pointed out by Margaret Kim, CEO of Gold Standard, the agreement marks the stepping into a new era following the COP26 summit in Glasgow in 2021.
Both parties have explicitly stated the pressing need to introduce strict procedures to facilitate the transfer of data pertaining to the retirement of credits between Singapore’s national registry and that of Gold Standard.
These procedures will ensure the transparency and integrity necessary to comply with the rules of Article 6.
This recent partnership is the second of its kind for Gold Standard, following the agreement signed with the government of Sweden a year ago.