In a press release, the Ministry of Trade and Industry Singapore announced that Singapore and Cambodia had signed on 26 April 2023 a Memorandum of Understanding ("MOU") to collaborate on carbon credits aligned with Article 6 of the Paris Agreement ("Article 6"). Article 6 allows countries to voluntarily cooperate to achieve emission reduction targets set out in their respective nationally determined contributions ("NDCs").
It is the intention of Singapore to achieve net zero emissions by 2050 and advance global climate action through collaborations with like-minded partners. Establishing partnerships with like-minded countries like Cambodia to work together on carbon credits is one way to attain this.
Under the MOU, both countries have agreed to:
- work towards crafting a legally binding agreement that provides a framework for the transfer of correspondingly adjusted carbon credits by end-2023;
- identify Article 6 compliant carbon credit projects to enable them to achieve their respective NDCs; and
- exchange information on best practices and capacity building relating to carbon credits collaboration.
