Singapore and Vietnam signed a key memorandum of understanding that would support the decarbonization efforts of both countries. The agreement states they will collaborate on energy and carbon credits.
The MOU on Carbon Credits Collaboration is the first to be signed between Singapore and an Association of Southeast Asian Nations (ASEAN) member state.
The part on Energy Cooperation covers several key areas such as the development and financing of renewable energy and the development of interconnectors for increased grid resilience, stability and electricity trading.
The MoU also includes collaboration on research, development, and deployment of low-carbon energy technologies and solutions such as hydrogen, ammonia, energy storage systems, smart grids, and related infrastructure.
“Singapore and Vietnam are close partners, and are committed to supporting both our countries’ energy transition as well as regional decarbonization,” said the Second Minister for Trade and Industry of Singapore Dr Tan See Leng.
He also explained that the MOU shows both countries’ commitment to work together on carbon credit pilot projects that allow them to partially meet their climate targets by buying offsets. Such collaborations are critical in promoting global climate action to achieve the net zero goals.