Singapore-Thailand Carbon Credits Deal Unlocks Climate Finance in Southeast Asia
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📰 The quick summary: Singapore and Thailand signed their first bilateral carbon credits agreement under Article 6 of the Paris Agreement, enabling high-integrity carbon credit transfers while advancing regional climate action.
📈 One key stat: The number of companies setting science-based climate targets has increased by 227% in a short period, highlighting the growing momentum for carbon market solutions like this new agreement.
💬 One key quote: “The collaboration is also designed to enhance climate adaptation in Thailand, with Singapore agreeing to allocate a portion of the proceeds from carbon credits to local efforts like flood resilience and sustainable forest management.”
1️⃣ The big picture: Singapore and Thailand have signed a landmark bilateral Implementation Agreement for carbon credits under Article 6 of the Paris Agreement. This legally binding deal, Singapore’s first with an ASEAN member state, allows for the transfer of high-integrity carbon credits from Thailand to Singapore while adhering to international standards. The agreement coincides with the 60th anniversary of diplomatic relations between the two nations and represents a significant advancement in regional climate collaboration. Financing will support Thai projects in clean energy, forestry, zero-emission transport, and waste management that deliver both environmental and socio-economic benefits.
2️⃣ Why is this good news: This agreement creates a framework for channeling climate finance into high-impact projects across Thailand while strengthening regional cooperation on climate action. The deal supports diverse initiatives from clean energy to sustainable forest management, providing dual benefits for the environment and local communities. Thailand gains support for climate adaptation efforts including flood resilience projects, advancing its goals to become a carbon credit hub in Southeast Asia. The partnership demonstrates how nations can collaborate effectively under the Paris Agreement framework while unlocking new financial mechanisms for sustainable development.
3️⃣ What’s next: The bilateral agreement will begin facilitating carbon credit transfers from Thai projects to Singapore while ensuring compliance with international standards. Both countries will collaborate to identify and develop eligible projects across sectors including clean energy, forestry, and zero-emission transport. Thailand will work toward establishing itself as a regional hub for carbon credit initiatives with Singapore’s support.
Read the full story here: Carbon Herald – Singapore And Thailand Sign Landmark Carbon Credits Agreement
