Singapore and Philippines have signed a legally binding agreement to collaborate on carbon credit projects under Article 6 of the Paris Agreement, marking the Philippines’ first such deal, officials said on Thursday.

The Implementation Agreement, signed during ASEAN Climate Week, sets out a framework for generating and transferring carbon credits from emissions-reduction projects aligned with global rules, said the statement.

The pact allows project developers to tap a formal mechanism to produce high-quality carbon credits, with details on project authorization processes and eligible methodologies to be released later.

Singapore’s Minister for Sustainability and the Environment Grace Fu said the agreement would deepen bilateral ties and help channel climate finance into projects in the Philippines, while creating new opportunities in carbon markets.

“This agreement will unlock opportunities for businesses and local communities, while supporting ASEAN’s transition to a low-carbon future,” she said.

Philippines Environment Secretary Juan Miguel T. Cuna described the deal as a strategic step aligned with national development priorities and climate commitments.

He said the collaboration would direct funding towards emissions-reduction projects, supporting job creation, energy security and pollution reduction in the Philippines.

The agreement is part of broader regional efforts to scale up carbon markets under the Paris framework, as Southeast Asian countries seek to attract climate finance and accelerate decarbonization.

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