Singapore and Peru have concluded negotiations on an implementation agreement for carbon credit co-operation aligned with Article 6 of the Paris Agreement, at the UN Cop 29 climate summit in Baku, Azerbaijan.
The countries "substantively concluded negotiations" on 21 November, said Singapore's ministry of trade and industry. The collaboration is aimed at unlocking additional mitigation activities and scaling solutions to advance both countries' climate ambitions.
Under the implementation agreement, a framework for the generation and international transfer of Article 6-compliant carbon credits will be established. The framework will include criteria and procedures for transfer between both countries.
Negotiators in Baku appear close to a final agreement on Article 6, which aims to help set rules on global carbon trade. Article 6.2 already 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.
"When the agreement is signed, we look forward to the private sector utilising this agreement to develop carbon credits projects to actualise concrete environmental outcomes," said Singapore's minister for sustainability and environment Grace Fu. The minister is also one of the facilitators, alongside New Zealand, for negotiations on Article 6.
Singapore also signed an implementation agreement with Zambia on 19 November at the summit. It has multiple carbon credit deals with other countries, but has only signed implementation agreements with Zambia, Ghana and Papua New Guinea so far.
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.
