Việt Nam, Singapore sign carbon deal

Việt Nam, Singapore sign carbon deal

The agreement confirms the two countries' pioneering role and strong commitment to international carbon market cooperation, making a substantive contribution to global efforts to tackle climate change.

Delegates of Việt Nam and Singapore at the event. — VNS Photo Tố Như

The governments of Việt Nam and Singapore on Tuesday officially signed an implementation agreement under Article 6 of the Paris Agreement on climate change.

The deal was signed online by Acting Minister of Agriculture and Environment of Vietnam Trần Đức Thắng and Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations Grace Fu.

The agreement confirms the two countries' pioneering role and strong commitment to international carbon market cooperation, making a substantive contribution to global efforts to tackle climate change.

Speaking at the ceremony, Thắng stressed that the agreement provided a bilateral legal framework enabling Vietnamese organisations and businesses to register greenhouse gas emission reduction projects and generate carbon credits that are recognised and transferable to Singapore.

He described it as a breakthrough that will unlock new climate finance, encourage investment in advanced technologies, promote emission reduction, clean energy transition and sustainable smart agriculture, while moving towards a circular economy.

The official expressed his hope that Singaporean enterprises will actively cooperate and invest in projects in Việt Nam to generate high-quality carbon credits, thereby contributing to shaping a regional carbon market in which both Việt Nam and Singapore play a leading and connecting role.

For her part, the Singaporean minister said the signing of this agreement marks an important new area of cooperation between the two countries and opens up new opportunities in the transition towards a low-carbon economy.

She expressed her confidence that it will promote greenhouse gas mitigation activities, enhance regional cooperation in addressing urgent climate change challenges and create new pathways towards sustainable development.

According to the Ministry of Agriculture and Environment, detailed information on project approval processes and the list of eligible methodologies will be announced in due course.

Bilateral cooperation between the two countries is expected to promote emission reduction activities, attract international capital flows into Việt Nam and deliver tangible benefits for local communities, including job creation, improved access to clean water, enhanced energy security, reduced environmental pollution and sustainable development, the ministry said. 

Bizhub