- The agreement creates a framework for high-integrity carbon credit transfers aligned with Article 6 of the Paris Agreement.
- Carbon projects under this pact will support Chile’s sustainable development while helping Singapore meet its climate goals.
- Singapore commits to channel 5% of proceeds to climate adaptation in Chile and cancel 2% of credits to ensure net global emission reductions.
Singapore expands its global carbon market framework with a new bilateral Implementation Agreement with Chile, marking its fifth such pact under Article 6 of the Paris Agreement.
This legally binding agreement enables the international transfer of correspondingly adjusted carbon credits—ensuring no double counting—and establishes a process to authorize and verify eligible mitigation projects. It follows similar pacts with Papua New Guinea, Ghana, Bhutan, and Peru.
“Singapore and Chile are longstanding and likeminded partners. Last year, we celebrated 45 years of diplomatic relations… We are now collaborating to spur climate action through carbon markets,” said Minister Grace Fu, Singapore’s Minister for Sustainability and the Environment and Minister-in-Charge of Trade Relations.
“This Implementation Agreement will unlock additional mitigation potential in Chile and will help Singapore to meet our climate target while bringing climate investments into Chile,” she added. “I look forward to active private sector participation when we operationalise this agreement.”
The agreement aligns with both nations’ climate ambitions and reinforces public-private partnerships for sustainable development.
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“Chile and Singapore have demonstrated active leadership through ambitious commitments and goals in climate change mitigation and adaptation… This agreement will create a valuable space for public-private cooperation to jointly address the challenge of climate change,” said Minister Alberto van Klaveren, Chile’s Minister of Foreign Affairs.
What’s inside the agreement:
- Authorised credits may be used to offset up to 5% of a company’s taxable emissions under Singapore’s International Carbon Credit (ICC) framework from Jan 1, 2024.
- Credits can also count toward binding commitments like Nationally Determined Contributions (NDCs) or international aviation offsets under CORSIA.
- Singapore will direct a 5% share of proceeds from these credits to fund climate adaptation in Chile.
- 2% of the authorised credits will be cancelled at issuance—ensuring a net reduction in global emissions, not just carbon shifting.
This bilateral framework enables credible, transparent, and verifiable carbon mitigation efforts, providing companies and investors a pathway to engage in international climate markets while directly supporting sustainable development in host countries.
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