Singapore signs implementation agreement with Bhutan to cooperate on carbon credits under Article 6 of Paris Agreement

25 March 2025

On 28 February 2025, Ministry of Trade and Industry Singapore (“MTI”) announced that Singapore and Bhutan signed an implementation agreement on carbon credits cooperation under Article 6 of the Paris Agreement. This marks Singapore’s first implementation agreement with a carbon-negative country, reinforcing both nations’ commitment to global climate action. A carbon-negative country removes more carbon from the atmosphere than it emits. 

The implementation agreement establishes a framework for the transfer of carbon credits generated from carbon mitigation projects aligned with Article 6 of the Paris Agreement. Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook. 

This collaboration will advance both countries’ climate ambitions by directing financing towards additional mitigation efforts. The carbon mitigation projects authorised under the implementation agreement will promote sustainable development and deliver tangible benefits to local communities, such as creation of jobs, improved access to clean water, enhanced energy security, and reduction of environmental pollution. 

Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook. MTI states that information on the process for authorisation and eligible carbon crediting methodologies under the implementation agreement will be published in due course. 

This implementation agreement with Bhutan is Singapore’s third such agreement, following agreements with Ghana and Papua New Guinea. 

Reference materials 

The press release is available on the MTI website www.mti.gov.sg.