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Singapore carbon credits

Singapore’s Ministry of Trade and Industry (MTI) announced on Nov. 21, during the COP29 climate summit in Azerbaijan, that it has substantively concluded negotiations on a bilateral carbon trading agreement with Peru. The Implementation Agreement (IA), aligned with Article 6 of the Paris Agreement will allow Singapore to purchase carbon credits from Peru.

Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations, Ms Grace Fu, said,

“The successful conclusion of substantive negotiations on the Implementation Agreement with Peru marks a significant milestone in our collective efforts to combat climate change and achieve our climate targets through cooperation. We thank our Peruvian counterparts for their partnership to advance global climate action. When the agreement is signed, we look forward to the private sector utilizing this agreement to develop carbon credits projects to actualize concrete environmental outcomes.”

Carbon Credits Cooperation: Unlocking the Implementation Agreement

This partnership builds on a 2022 memorandum of understanding (MOU) between the two countries, which laid the foundation for bilateral cooperation in carbon markets.

The next step involves formalizing the agreement through an implementation signing. The key highlights of the collaboration and the agreement include the following:

  • The collaboration aims to boost mitigation efforts and scale effective climate solutions, helping both countries advance their climate goals.
  • The agreement also creates a framework for generating and transferring Article 6-compliant carbon credits internationally.
  • It defines clear criteria and processes for developing carbon credit projects. It also outlines how credits will be transferred between Singapore and Peru.
  • The agreement outlines steps to ensure independent and robust accounting and eliminate double counting of carbon credits.

Once completed, Singaporean companies liable for carbon taxes can purchase credits from Peru to offset up to 5% of their taxable emissions. This marks a significant step in Singapore’s efforts to explore alternative pathways to reduce its carbon footprint.

COP29 Spotlight: Singapore Expands Carbon Market Ties

Singapore has been active in advancing carbon credit initiatives at COP29 and achieved some important milestones in this space. On Nov. 18, the Singapore Sustainable Finance Association signed a pact with five major carbon market associations representing Malaysia, Indonesia, Singapore, Thailand, and ASEAN to create a unified ASEAN Common Carbon Framework. This collaboration aims to reduce implementation costs and unlock regional carbon project opportunities.

Recently, Singapore and Zambia signed a similar Memorandum of Understanding (MOU) to collaborate on carbon credits aligned with Article 6 of the Paris Agreement at the COP29 summit. This was announced on November 19. The MOU enables both countries to share best practices and knowledge on carbon credit mechanisms. It also helps identify carbon credit projects that benefit both nations and support their climate goals.

Singapore carbon credits

Source: The Straits Times

Singapore has already signed implementation agreements with Papua New Guinea and Ghana, although trading under these agreements has not started.

The country is actively engaging with over 20 countries on carbon markets, most of which remain in the MOU phase. MTI revealed that the country has signed similar agreements with Cambodia, Chile, Fiji, Kenya, Lao PDR, Mongolia, Peru, Rwanda, Senegal, Sri Lanka, and the Philippines.

Peru now joins Bhutan, Vietnam, and Paraguay as countries that have reached the advanced stage of finalizing crucial issues on carbon trading with Singapore.

A Win-Win for Sustainability and Development

Singapore faces significant challenges in decarbonizing due to its lack of alternative energy resources Therefore, buying carbon credits seems like the most viable solution. Thus, the country can mitigate carbon emissions by funding projects with the parenting county.

Singapore carbon emissions

For Peru, this agreement provides access to international carbon markets, bringing investments into sustainable projects such as reforestation. Such projects not only address environmental goals but also promote local development, create green jobs, and foster innovation.

Peru’s Deputy Minister of Strategic Development of Natural Resources of the Ministry of Environment, Ms Raquel Soto, said,

“The Implementation Agreement with Singapore brings significant benefits for Peru, enhancing our ability to address climate change while driving sustainable development. Through this agreement, we can access international carbon markets to channel investments into high-quality mitigation projects that support our environmental and economic goals. It reinforces Peru’s leadership in leveraging Article 6 mechanisms of the Paris Agreement to promote innovation, create local green jobs, and achieve our climate commitments in a transparent and effective manner. This partnership with Singapore underscores the power of international cooperation in building a more sustainable future.” 

MTI emphasized Singapore’s commitment to upholding transparency, quality, and accountability in carbon markets. With these growing partnerships, the Southeast Asian nation can eventually be a leader in global carbon markets and trade carbon credits effectively. Last but not least, the country is leveraging international cooperation to address its sustainability challenges while supporting global climate goals.

Sources:

    1. S’pore and Peru’s carbon trading agreement reaches advanced stage | The Straits Times
    2. Conclusion of Substantive Negotiation on IA with Peru

The post COP29: Singapore and Peru Seal the Deal on Article 6 Carbon Credits Framework appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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