Singapore and Malawi have signed a memorandum of understanding (MoU) to jointly develop a carbon credit framework under Article 6 of the Paris Agreement, marking a significant step in bilateral climate cooperation.
The agreement, reached on the sidelines of COP30, lays the groundwork for a future legally binding implementation agreement.
Under the framework, Singapore’s carbon tax-liable companies may purchase eligible credits generated in Malawi to offset up to 5% of their taxable emissions.
The two countries will collaborate to identify mitigation projects aligned with both their Paris climate goals, focusing on initiatives that deliver emissions reductions as well as broader social and environmental benefits, such as job creation, community resilience and ecosystem protection.
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Singapore’s Environment Minister Grace Fu said the partnership was designed to demonstrate how high-quality carbon credits could “credibly raise global climate ambition,” while generating concrete benefits for local communities.
She highlighted access to energy, food security and green jobs as outcomes the countries hope to achieve, as reported by ESG News.
For Malawi, the pact offers a performance-based financing route for long-term climate projects in areas such as forest conservation, agriculture and renewable energy.
The agreement is aligned with Singapore’s broader strategy to cultivate high-integrity carbon markets through bilateral ties.
The country, which is aiming for net-zero emissions by 2050, has expanded its network of Article 6 partnerships in recent years and has already moved to full implementation agreements with 10 nations, including Bhutan, Ghana, Peru, Rwanda, and Vietnam.
Read more: COP30: Singapore, Gold Standard And Verra Unveil Global Carbon Credit Protocol For Article 6.2
