Singapore and Mongolia launch bilateral carbon credit initiative

Singapore and Mongolia will begin accepting applications for carbon credit projects on 30 October under a bilateral implementation agreement, according to a joint statement by Singapore’s Ministry of Energy, Trade and Industry and the National Environment Agency. The projects are expected to generate carbon credits in line with Article 6 of the Paris Agreement. Under Singapore’s International Carbon Credit Framework, these credits may be eligible for use by Singapore-based companies subject to carbon tax, allowing them to offset up to 5% of their taxable emissions.

The agreement marks Singapore’s sixth bilateral implementation agreement allowing applications for carbon credit projects. It follows similar arrangements with Ghana, Bhutan, Peru, Rwanda and Thailand, according to the press release.

In 2025, Singapore released its updated NDC, in which it intends to reduce its GHG emissions to between 45 to 50 MtCO₂eq in 2035 (from 63 MtCO₂eq in 2024). The first NDC set the target of reducing the GHG emission intensity by 36% from 2005 levels by 2030, with an aim of achieving peak emissions around 2030. In 2022, the government announced that it would achieve net zero emissions by 2050. To reach its carbon objectives, Singapore plans to transform its economy by funding emerging low-carbon and carbon capture utilisation and storage (CCUS) technologies and contributing to the creation of carbon markets and regional power grids.

In addition, given that Singapore lacks suitable underground sites to facilitate CCS, Singapore seeks to work with other countries in the development of this technology. Some countries that Singapore is looking to collaborate with to lock up carbon or share best practices on the technology are Indonesia, Malaysia, Japan, Brunei, and Australia (Enerdata Global Energy Research).