Singapore and the Philippines have signed a landmark Implementation Agreement on carbon credits collaboration, marking the Philippines’ first such agreement under Article 6 of the Paris Agreement. The signing occurred during ASEAN Climate Week in Manila, with Singapore’s Minister for Sustainability and the Environment, Grace Fu, and the Philippines’ Department of Environment and Natural Resources Secretary, Juan Miguel T. Cuna, formalising the partnership.
The agreement establishes a legally binding framework for generating and transferring carbon credits from projects aligned with Article 6. This framework will enable project developers to create high-quality carbon credit projects, with details on authorisation processes and eligible methodologies to be released soon.
Grace Fu highlighted the significance of the agreement, stating, “This Agreement will deepen collaboration between our two countries, channel climate finance towards impactful projects in the Philippines and unlock new opportunities in carbon markets for businesses and local communities.” Juan Miguel T. Cuna echoed this sentiment, noting that the agreement reflects a shared ambition for climate cooperation.
The collaboration aims to advance both nations’ climate goals by financing projects that unlock additional mitigation potential in the Philippines. These projects are expected to promote sustainable development and provide tangible benefits to local communities, including job creation, enhanced energy security, and reduced environmental pollution.
Under the agreement, Singapore commits to channelling 5% of proceeds from authorised carbon credits towards climate adaptation measures in the Philippines. Additionally, 2% of the carbon credits will be cancelled at first issuance, contributing to a net reduction of global emissions.
