Singapore and Ghana launch first call for project applications under Implementation Agreement on carbon credits cooperation
29 October 2024
From 30 September 2024, interested parties may submit applications through Singapore’s Carbon Markets Cooperation website for their carbon credit projects in Ghana to be authorised pursuant to the Implementation Agreement on carbon credits cooperation (“Implementation Agreement”) between Singapore and Ghana. It was announced in a joint press release by the Ministry of Sustainability and the Environment (“MSE”) and the Ministry of Trade and Industry (“MTI”) on 30 September 2024 that Singapore and Ghana have set out the processes for authorising carbon credit projects under the Implementation Agreement. Applications submitted will be reviewed by Singapore and Ghana Governments on a rolling basis as they are received.
MTI had announced on 27 May 2024 that Singapore and Ghana had signed the Implementation Agreement under Article 6 of the Paris Agreement. The Implementation Agreement sets out a legally binding bilateral framework for the international transfer of correspondingly adjusted high-integrity carbon credits aligned to Article 6 of the Paris Agreement. The framework includes processes to seek authorisation for carbon credit projects and corresponding adjustments for implemented mitigation outcomes. For more information, please read our article “Singapore and Ghana to collaborate on carbon credits under Article 6 of the Paris Agreement”.
The carbon credit projects authorised under the Implementation Agreement will channel financing towards emissions reduction or removal projects in Ghana. Authorised projects can generate carbon credits aligned with Article 6 of the Paris Agreement. Under Singapore’s International Carbon Credit (ICC) framework, these credits may be eligible for use by Singapore-based carbon tax-liable companies to offset up to 5% of their taxable emissions. Annex A to the press release lists the following potential carbon credit project types for application:
- Providing clean water supply such as water purification technologies.
- Providing efficient and clean cookstoves such as cookstoves that use renewable fuel like biogas or solar energy.
- Providing green mobility such as electric vehicles to replace fossil fuel-powered vehicles for transportation needs.
Application and authorisation process
There are four stages to the application and authorisation process. In the first three stages, applicants must submit details on the design and implementation plan for the carbon credit project in the lead-up to project authorisation. In the last stage, corresponding adjustments will be applied to the carbon credits generated from the authorised project pursuant to Article 6 of the Paris Agreement. A flowchart of the application and authorisation process is provided in Annex B to the press release.
Singapore and Ghana will assess applications against each country’s respective requirements. For Singapore, these projects must meet Singapore’s eligibility criteria which requires International Carbon Credits to represent emissions reductions or removals that occur within the timeframe specified under Article 6 of the Paris Agreement, and meet seven principles to demonstrate environmental integrity. To comply with Article 6 of the Paris Agreement, the certified emissions reductions or removals must have occurred between 1 January 2021 and 31 December 2030.
The eligibility criteria, and the list of eligible carbon crediting programmes and methodologies under the Singapore-Ghana Implementation Agreement, are set out in Annex C to the press release, and on the Carbon Markets Cooperation Eligibility Criteria webpage. The list will be reviewed regularly to maintain relevance and uphold environmental integrity.
Reference materials
The press release is available on the MSE website www.mse.gov.sg and MTI website www.mti.gov.sg.