Singapore and the Philippines signed an agreement on Thursday establishing the legal framework for the bilateral transfer of carbon credits aligned with Article 6 of the Paris Agreement, almost two years after the countries began collaborating on the arrangement.
The Article 6 implementation agreement — the first signed by the Philippines — provides a legal framework for the generation and transfer of carbon credits aligned with the mechanism between the countries.
Such credits will be correspondingly adjusted, meaning their emissions savings cannot be double counted. They will be eligible for use towards national climate plans under the Paris deal, the international credit quota under Singapore's domestic carbon tax, and other "international mitigation purposes" such as the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia), Singapore's trade and industry ministry said.
Singapore will cancel 2pc of the credits authorised under the agreement on issuance as a contribution towards global emissions reductions. It will also put 5pc of its share of proceeds from the agreement's credits towards climate adaptation in the Philippines.
Authorisation processes for projects and the eligible methodologies for credit generation will be published "in due course", the ministry said.
The countries signed an initial agreement in August 2024 to work towards the legal framework.
Singapore signed its first Article 6 implementation agreement with Papua New Guinea in 2023, followed by Ghana in 2024. It significantly ramped up its agreements last year, signing with Bhutan, Peru, Chile, Rwanda, Paraguay, Thailand, Vietnam and Mongolia.
