Singapore and Paraguay ink carbon credits deal

This is the city-state’s seventh carbon credits collaboration.

Singapore and Paraguay have signed an implementation agreement on carbon credits collaboration.

In a statement, the Ministry of Trade & Industry said this is Singapore’s seventh carbon credits deal following agreements with Papua New Guinea, Ghana, Bhutan, Peru, Chile, and Rwanda.

The city-state’s Minister for Sustainability and the Environment and Minister-in-Charge of Trade Relations Grace Fu and Paraguay’s Minister of Environment and Sustainable Development Rolando de Barros Barreto inked the deal.

Under the agreement, a framework will be established for generating and transferring carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement. Project developers can leverage this to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook.

“This mechanism not only reaffirms our commitment to environmental integrity and the goals of the Paris Agreement, but also opens new opportunities to generate green jobs, attract sustainable investments, and improve the quality of life of our people,” said Barreto.

This collaboration will advance both countries’ climate ambitions by directing financing towards unlocking additional mitigation potential in Paraguay.