Singapore and Thailand Launch Cross-Border Carbon Credit Partnership

Singapore and Thailand have started accepting applications for carbon credit projects under a new bilateral agreement. The deal aims to boost sustainable development in Thailand while helping Singapore meet its climate targets. Both countries will now review proposals in a structured three-step process. The agreement follows Article 6 of the Paris Agreement, creating a legally binding system for transferring high-quality carbon credits between nations. Singapore has already signed similar deals with ten countries, reinforcing its push for net zero emissions by 2050.

Projects must align with recognised standards like Gold Standard, Verra, or REDD+. Eligible sectors include agriculture, renewable energy, and waste management. Each submission will undergo joint review in three phases: an initial concept note, a detailed project design, and final adjustments. Once approved, carbon credits can be used by Singapore-based companies to offset up to 5% of their taxable emissions. However, Singapore will cancel 2% of the credits at first issuance to ensure environmental integrity. Authorised projects are also expected to create jobs and reduce pollution in Thailand.

The partnership marks a key step in cross-border carbon trading for both nations. Thailand gains support for sustainable growth, while Singapore strengthens its climate strategy. Companies in Singapore will soon have access to new credits to meet their carbon tax obligations.