- The agreement allows Vietnam to create carbon credits recognized in Singapore.
- The pact aims to attract climate funding and investment in sustainable technologies.
- Collaboration supports a low-carbon economy, clean energy transition, and local job creation.
The governments of Vietnam and Singapore officially signed an implementation agreement under Article 6 of the Paris Agreement regarding climate change. The online agreement was executed by Vietnam's Acting Minister of Agriculture and Environment, Tran Duc Thang, and Singapore’s Minister for Sustainability and the Environment, Grace Fu, who is also the Minister-in-charge of Trade Relations.
The agreement underscores the leading position and firm dedication of both nations in collaborating on the international carbon market, significantly advancing global initiatives to combat climate change.
During the ceremony, Thang emphasized that the agreement establishes a legal framework for both parties, allowing Vietnamese organizations and companies to register greenhouse gas emission reduction projects and create carbon credits that are recognized and transferable to Singapore.
He characterized it as a significant advancement that will open up new climate funding, stimulate investment in cutting-edge technologies, foster emission reduction, facilitate clean energy transition, and sustainable smart farming, all while progressing towards a circular economy.
The official voiced his expectation that Singaporean businesses will engage and invest in initiatives in Vietnam to produce high-quality carbon credits, thus helping to establish a regional carbon market where both Vietnam and Singapore take on a leading and bridging role.
The Singaporean minister stated that the agreement's signing signifies a significant new area of collaboration between the two nations and creates new opportunities in the shift to a low-carbon economy.
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She conveyed her assurance that it will encourage activities for reducing greenhouse gases, foster regional collaboration in tackling pressing climate change issues, and open up new avenues for sustainable development.
The Ministry of Agriculture and Environment will announce detailed information regarding project approval processes and the list of eligible methodologies in due time.
The ministry stated that bilateral cooperation between the nations is anticipated to foster emission reduction initiatives, draw international investments into Vietnam, and provide significant advantages for local communities, such as job opportunities, better access to clean water, increased energy security, decreased environmental pollution, and sustainable development.