Singapore and the Lao People’s Democratic Republic (Lao PDR) have signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement on Friday.

The Implementation Agreement was signed virtually between Singapore’s Minister for Sustainability and the Environment and Minister in-charge of Trade Relations Grace Fu and Lao PDR’s Minister of Agriculture and Environment Dr. Lingham Douangsavanh, the Ministry of Trade and Industry Singapore said in a statement.

This is Singapore’s 12th Implementation Agreement on carbon credits collaboration, and 4th with an ASEAN Member State.

The Implementation Agreement establishes a legally binding framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement.

Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook.

Information on the process for authorization of these carbon credit projects and eligible carbon crediting methodologies under the Implementation Agreement will be published in due course.

“Singapore and Lao PDR share a strong and longstanding partnership. As fellow ASEAN Member States, we are committed to working together on regional and bilateral initiatives,

“The signing of the Implementation Agreement is an important milestone in our bilateral partnership and unlocks new opportunities in carbon markets for businesses and local communities. By working together, ASEAN can lead the way in building a low carbon future that delivers tangible benefits across the region,” Fu said.

Douangsavanh said Singapore and Lao PDR share a partnership built on trust and mutual benefit, and this Implementation Agreement takes that partnership to a new level.

“It gives us a transparent, high-integrity framework to develop carbon credit projects that create jobs, protect our environment, and channel climate finance towards adaptation in Lao PDR,

“As close ASEAN partners, we are proud to show that our region can lead in building carbon markets that deliver real, tangible benefits for our people and for the global effort against climate change,” he added.

According to the statement, this collaboration will advance both countries’ climate goals by directing financing towards unlocking additional emissions reduction opportunities in Lao PDR.

The carbon credit projects authorized under this Implementation Agreement will foster sustainable development and deliver tangible benefits to local communities, including job creation, and reduction of environmental pollution.

Singapore and Brazil to collaborate on green and digital shipping corridor