Singapore and Zambia today signed an agreement at the UN Cop 29 summit in Baku, Azerbaijan to collaborate on carbon credits aligned with Article 6.2 of the Paris Agreement.
The countries will collaborate on a legally binding implementation agreement on carbon credits, which will include criteria and procedures for transfer under Article 6 of the Paris Agreement.
Article 6 of the Paris accord aims to help set rules on global carbon trade. And within it, Article 6.2 allows countries' governments to form bilateral agreements for carbon mitigation projects, the outcomes of which can be traded to contribute towards climate pledges. Mitigation refers to efforts to reduce greenhouse gas emissions causing global warming.
The agreement between Singapore and Zambia is also aimed at facilitating knowledge exchange on carbon credit mechanisms. The countries will jointly identify mutually beneficial carbon credit projects and develop the necessary infrastructure to enable these projects.
Singapore has entered into multiple carbon credit deals with other countries, but it has only signed implementation agreements with Ghana and Papua New Guinea.
Carbon credits are an "innovative source of finance," said Singapore's minister of sustainability and environment Grace Fu today at the summit. "We are working with partners to develop a well-functioning and credible carbon market, including through the co-facilitation of the Paris Agreement Article 6 negotiations, and building a pipeline of high-quality, high integrity credits," she said.
Singapore's National Climate Change Secretariat and the world's largest independent carbon credit registries Verra and Gold Standard last week released initial recommendations outlining the development of a carbon crediting protocol to implement Article 6.2. The recommendations are aimed at helping countries to use Article 6 to achieve their UN climate pledges and sustainable development goals, and provides recommendations on how governments can facilitate an effective Article 6.2 market.
If such a framework is not established, "countries could take divergent approaches, which could hinder the implementation, scaling and integrity of co-operation under Article 6.2," said Verra.
The protocol will be further developed and published once Cop 29 is concluded, said Verra. It will incorporate decisions from Cop 29 and will be implemented in 2025.
