Singapore and Chile have signed a landmark Implementation Agreement enabling the transfer of high-integrity carbon credits under Article 6 of the Paris Agreement, supporting both countries’ ESG goals and carbon neutral strategy. The legally binding pact facilitates transparent, verifiable, and correspondingly adjusted credit transfers, ensuring no double counting while aligning with international climate standards.
This is Singapore’s fifth Article 6 agreement, following similar partnerships with Papua New Guinea, Ghana, Bhutan, and Peru. The framework will allow Singaporean companies to offset up to 5% of their taxable emissions under the country’s International Carbon Credit (ICC) framework, starting from January 1, 2024. Credits may also be used to meet Nationally Determined Contributions (NDCs) and international aviation offset obligations under CORSIA.
Singapore has committed to channel 5% of proceeds from the credit trades into climate adaptation initiatives in Chile. Additionally, 2% of the credits will be cancelled upon issuance, ensuring a net global reduction in emissions, rather than simply transferring carbon liabilities.
Minister Grace Fu, Singapore’s Minister for Sustainability and the Environment, highlighted the partnership’s significance: “This Implementation Agreement will unlock additional mitigation potential in Chile and will help Singapore to meet our climate target while bringing climate investments into Chile.” She emphasized the importance of public-private partnerships in scaling climate action.
Chilean Minister of Foreign Affairs Alberto van Klaveren echoed the sentiment, noting the agreement’s potential to strengthen bilateral cooperation and enhance private sector engagement in sustainability.
The agreement further reinforces Singapore’s leadership in building a credible global carbon market ecosystem and supports Chile’s sustainable development priorities. It offers a robust pathway for corporations and investors to participate in international carbon markets while directly contributing to measurable climate impact—solidifying ESG commitments and accelerating progress toward carbon neutrality.
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