Singapore Vietnam Carbon Credits Collaboration Agreement
- On 16 September 2025, Singapore and Vietnam signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement ("Article 6"), affirming their shared commitment...
- The Implementation Agreement establishes a legally binding bilateral framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6.
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Singapore and Vietnam Forge Landmark Carbon Credit partnership
On 16 September 2025, Singapore and Vietnam signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement (“Article 6“), affirming their shared commitment to international carbon market cooperation and to making a substantive contribution to global efforts to tackle climate change. The Implementation Agreement was signed virtually by Singapore’s Minister for Sustainability and the Environment and Minister-in-Charge of Trade relations grace Fu and Vietnam’s Acting Minister of Agriculture and Environment Tran Duc Thang.
The Implementation Agreement establishes a legally binding bilateral framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6. The framework provides the foundation for Vietnamese organisations and businesses to register greenhouse gas (“GHG“) emission reduction projects and generate carbon credits, with the results recognised and transferred to Singapore.
Singapore’s Ministry of trade and Industry (“MTI“) states that Singapore is committed to channelling the value equivalent to 5% share of proceeds from authorised carbon credits towards climate adaptation measures in Vietnam. Singapore is also committed to having 2% of the correspondingly adjusted carbon credits authorised under this Implementation Agreement cancelled at first issuance. The carbon credits that are cancelled cannot be sold, traded or counted towards any country’s emission targets, and serves as a contribution towards a net reduction of global emissions. Cooperation under the Implementation Agreement will be guided by Vietnam’