Singapore signs agreement with Paraguay for carbon credit collaboration
By Clare Lin
This marks Singapore’s seventh collaboration around carbon credits, following international agreements with Papua New Guinea, Ghana, Bhutan, Peru, Chile, and Rwanda.
-1748319612381.jpg)
Paraguay’s Minister of Environment and Sustainable Development, Rolando de Barros Barreto and Singapore’s Minister for Sustainability and the Environment and Minister-in charge of Trade Relations, Grace Fu. Image: Ministry of Digital Development and Information
Singapore and Paraguay have signed an agreement on carbon credits on May 23.
The agreement was signed by Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations, Grace Fu and Paraguay’s Minister of Environment and Sustainable Development (MADES), Rolando de Barros Barreto.
This carbon credit agreement follows a similar deal signed with Bhutan on February 28, which marked Singapore’s first collaboration with a carbon-negative country.
The agreement forms a framework for the bilateral and international transfer of carbon credit projects between Paraguay and Singapore, under Article 6 of the Paris Agreement.
A crucial aspect of this mechanism is that Paraguay would be required to increase its reported carbon emissions by the number of credits it transfers to Singapore, thereby preventing double counting.
According to the Ministry of Trade and Industry Singapore (MTI), project developers can utilise this framework to develop high-quality carbon credit projects aligned with Article 6.
Latin America, where Paraguay is located, is currently the second-largest provider of voluntary carbon credits in the world.
To subscribe to the GovInsider bulletin click here.
In a statement by MTI, Fu shared her hope that Singapore and Paraguay would be able to work together towards their shared goal of reduced carbon emissions.
Minister Fu said that “This Implementation Agreement marks a significant milestone in our partnership, as we work together to address the global challenge of climate change.”
Likewise, Minister Barreto highlighted how this agreement hoped to position Paraguay as a key player in international markets.
He added: “This mechanism not only reaffirms our commitment to environmental integrity and the goals of the Paris Agreement, but also opens new opportunities to generate green jobs, attract sustainable investments, and improve the quality of life of our people”.
Earlier this year, the government of Paraguay strengthened the legal foundations of its carbon market system to promote reduced carbon emissions in Paraguay.