Singapore and Malawi have signed a memorandum of understanding (MoU) to collaborate on carbon credits aligned with Article 6 of the Paris Agreement, on the sidelines of the UN Cop 30 climate summit in Belem, Brazil.
Under this MoU signed on 20 November, the countries will work towards a legally binding implementation agreement for carbon credits aligned with Article 6.2. Singapore and Malawi will collaborate to jointly identify potential Article 6-compliant mitigation projects that will support both countries in achieving their respective nationally determined contributions.
Carbon-tax liable companies in Singapore will be able to purchase carbon credits from eligible projects under this implementation agreement to offset up to 5pc of their emissions.
"I hope that our co-operation will demonstrate how high-quality carbon credits can credibly raise global climate ambition, and bring about tangible benefits for local communities, such as environmental protection, improved access to energy, water and food security, and the creation of good jobs," Singapore's minister for sustainability and the environment Grace Fu said.
Singapore has signed similar MoUs with 10 other countries. In September, it agreed to pay $76mn to buy 2.17mn nature-based credits from four projects in Ghana, Peru and Paraguay under its deals with these countries.
