Singapore and Bhutan have signed a Memorandum of Understanding (MOU) to work together on carbon credits.
The agreement was signed by Singapore’s Minister for Trade and Industry Gan Kim Yong and the Minister for Energy and Natural Resources Loknath Sharma, on behalf of Bhutan.
The MOU between the two countries is in line with Article 6 of the Paris Agreement, which provides national governments with the ability to partner in their pursuit of meeting climate goals.
Under the agreement, both nations agree to do what is necessary to arrive at a point, where a legally binding contract can be signed that outlines the details of the international transfer of carbon credits by the end of this year.
Part of this process will involve Singapore and Bhutan determining what carbon credits projects will be considered mutually beneficial and compliant with Article 6, in order for both sides to meet their respective Nationally Determined Contribution (NDC).
In a statement regarding the recent partnership, Singapore’s Minister Gan said: “Through this MOU, Singapore and Bhutan intend to collaborate on carbon credits aligned to Article 6 of the Paris Agreement, which will enable us to accelerate decarbonisation, and generate mutual benefits including growing each other’s green economy.”