Singapore and Sri Lanka Ink MoU to Collaborate on Carbon Credits

Singapore and Sri Lanka have signed a Memorandum of Understanding (MoU) to collaborate on carbon credits. Under the MoU, both countries will collaborate on carbon credits aligned to Article 6.2 of the Paris Agreement and related carbon market initiatives.

This cooperation will include the exchange of best practices on carbon credits and the identification of mutually beneficial projects. Singapore and Sri Lanka will also explore potential collaboration opportunities in carbon markets with third countries, and enhance biodiversity protection initiatives.

Singapore and Sri Lanka said they will work together to identify potential Article 6-compliant mitigation activities, including emissions reduction and removal projects of mutual benefit and interest, which can support both countries in achieving their respective NDCs.

When completed, carbon tax-liable companies in Singapore will be able to purchase carbon credits from eligible projects to offset up to 5% of their taxable emissions.

Singapore aims to achieve net zero emissions by 2050 and is committed to advancing global climate action through international collaboration with like-minded partners.

The Southeast Asian city-state has signed similar MoUs/Letters of Intent with Bhutan, Cambodia, Chile, Colombia, Dominican Republic, Ghana, Kenya, Mongolia, Morocco, Papua New Guinea, Peru, and Vietnam.