Singapore and Chile signed an implementation agreement on 7 April to collaborate on carbon credits under Article 6 of the Paris Agreement.
The countries will begin the ratification process and operationalise the agreement following the signing, according to Singapore's Ministry of Trade and Industry (MTI). The collaboration will involve financing towards unlocking additional mitigation potential in Chile, and "will help Singapore to meet our climate target while bringing climate investments into Chile," said Singapore's minister for sustainability and the environment, Grace Fu.
The implementation agreement sets up a framework for the generation and transfer of carbon credits from carbon mitigation projects under Article 6. More information on the authorisation process for the carbon credit projects and eligible carbon crediting methodologies will be published in due course, according to the MTI.
Carbon credits traded under Article 6 count towards the buyer's nationally determined contribution (NDC). Singapore submitted its new emissions reduction target in February, aiming to reduce emissions to 45mn-50mn t of CO2 equivalent in 2035 as part of its NDC.
This is Singapore's second deal with a Latin American country, following an agreement signed on 1 April with Peru. Singapore has signed similar agreements with Papua New Guinea, Ghana and Bhutan.
