SINGAPORE: Singapore and Papua New Guinea on Friday (Dec 8) signed an implementation agreement on carbon credits cooperation, which will help both countries advance their climate goals.
The agreement was signed by Singapore’s Minister for Sustainability and the Environment Grace Fu and Papua New Guinea’s Minister of Environment, Conservation and Climate Change Simo Kilepa on the sidelines of the 2023 UN Climate Change Conference (COP28).
It comes after both countries signed a memorandum of understanding during COP27 last year.
It also marks the first implementation agreement for Singapore, said the Ministry of Trade and Industry (MTI), the Ministry of Sustainability and the Environment (MSE) and the National Climate Change Secretariat (NCCS) in a joint press release.
The agreement sets out a legally binding framework and processes for the generation and international transfer of carbon credits between Singapore and Papua New Guinea.
“This collaboration will advance both countries’ climate ambition and help to channel financing towards additional mitigation efforts through carbon credit projects which would otherwise not be possible,” said the MTI, MSE and NCCS.
“The carbon credit projects authorised under the implementation agreement will also promote sustainable development and generate benefits for local communities, such as the creation of jobs, access to clean water, improved energy security, and reduction of environmental pollution.”
As part of Singapore’s cooperation with Article 6 of the Paris Agreement, project developers will be required to cancel 2 per cent of the carbon credits issued under the implementation agreement at first issuance to ensure additional contribution to overall mitigation of global emissions.
They will also be required to make a contribution equivalent to 5 per cent share of proceeds or authorised carbon credits towards climate adaptation in Papua New Guinea.
“This will help Papua New Guinea prepare for and adjust to the impacts of climate change,” the authorities said.