On May 23, Singapore and Paraguay formalized a carbon credit agreement, marking Singapore’s seventh such international collaboration.
The agreement was signed by Singapore’s Minister for Sustainability and the Environment, Grace Fu, and Paraguay’s Minister of Environment and Sustainable Development, Rolando de Barros Barreto.
This partnership establishes a framework for the bilateral transfer of carbon credits under Article 6 of the Paris Agreement.
Under the deal, Paraguay will account for the emission reductions it transfers to Singapore by adjusting its national emissions tally, ensuring transparency and preventing double counting.
Singapore previously signed similar agreements with countries including Bhutan, Papua New Guinea, Ghana, Peru, Chile, and Rwanda.
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Notably, the agreement with Bhutan, concluded in February, was Singapore’s first with a carbon-negative nation.
The new agreement will allow project developers to create high-quality, Article 6-compliant carbon credit projects.
Paraguay, located in Latin America—the world’s second-largest source of voluntary carbon credits—is working to strengthen its position in the global carbon market.
Singapore’s Ministry of Trade and Industry (MTI) emphasized the shared commitment to reducing emissions and fostering sustainable development.
“This Implementation Agreement marks a significant milestone in our partnership, as we work together to address the global challenge of climate change,” Minister Fu stated.
Minister Barreto echoed these sentiments, highlighting the broader economic and social potential of the initiative.
“This mechanism not only reaffirms our commitment to environmental integrity and the goals of the Paris Agreement, but also opens new opportunities to generate green jobs, attract sustainable investments, and improve the quality of life of our people,” he said.
Earlier in 2025, Paraguay enhanced its legal framework to support carbon market mechanisms, aiming to expand climate action and attract green investment.
