Singapore and Thailand signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement on August 19, 2025. The agreement establishes a framework for the generation and transfer of carbon credits from mitigation projects aligned with the Article 6 rulebook.
Under the framework, project developers can develop carbon credit projects that meet Article 6 requirements. Information on the authorisation process and eligible carbon crediting methodologies will be published in due course.
Correspondingly adjusted carbon credits authorised under the agreement may be used to offset up to 5% of a company’s taxable emissions under Singapore’s International Carbon Credits (ICC) framework from January 1, 2024, subject to eligibility. They may also be used to meet binding mandates such as Nationally Determined Contributions (NDCs) and international mitigation purposes including CORSIA.
Singapore has committed to channel the value equivalent to a 5% share of proceeds from authorised carbon credits towards climate adaptation measures in Thailand, including sustainable forest management, flood resilience projects and water resources management. As a contribution to net global emissions reduction, Singapore will cancel 2% of correspondingly adjusted carbon credits authorised under this Implementation Agreement at first issuance; these cancelled credits cannot be sold, traded, or counted towards any country’s emission targets.
The agreement is expected to advance both countries’ climate ambitions by directing financing to unlock additional mitigation potential in Thailand. Projects authorised under the agreement are intended to promote sustainable development and deliver local benefits such as job creation, improved waste management, enhanced energy efficiency, and reduced environmental pollution.