The governments of Singapore and the Sri Lankan government have joined hands through the MOU (memorandum of understanding ) which both the parties signed to strengthen collaboration on the front of carbon credits.

Issuing a joint statement, Singapore’s Ministry of Trade and Industry unveiled that the MOU necessitates the two nations to collaboratively engage in the realm of carbon credits, in accordance with the directives outlined in Article 6.2 of the Paris Agreement. 

Under this collaborative effort both the country aims to strengthen and bolster their commitment to environmental sustainability and amplify their future plans in the carbon market domain.

It is expected that this strategic partnership targets multiple aspects and approaches from both nations that are set to share their most effective methods for sustainable practices while identifying projects that can be mutually advantageous. Furthermore, the partnership will extend its reach to potential collaborations within the carbon markets of other countries.

Leading figures from Singapore and Sri Lanka formalized the MOU through their signatures. Mr Beh Swan Gin, the Singapore Permanent Secretary (Development) from the Ministry of Trade and Industry, and Ms. Sashikala Premawardhane, the Sri Lanka High Commissioner to Singapore, lent their support to this landmark agreement.

Mr Bleh’s Comment

Commenting on this initiative, Mr. Beh highlighted its significance: “Singapore and Sri Lanka’s cooperation on carbon credits aims to advance climate action. This MOU enables both countries to make progress on our respective climate targets while enabling mutually beneficial outcomes such as creating new jobs in the green economy and enhancing biodiversity protection.”

The MOU additionally mandates both markets to undertake the development of an internationally binding Implementation Agreement. This agreement would govern the cross-border transfer of adjusted carbon credits and incorporate a comprehensive set of criteria and procedures.

It’s one of the steps that will establish a framework for Singapore’s carbon tax-liable enterprises to acquire carbon credits from eligible projects, allowing them to offset a portion of their taxable emissions, up to 5%.

It was previously seen in the case of Singapore which has previously forged similar collaborative agreements with a host of countries, including Bhutan, Cambodia, Chile, Colombia, the Dominican Republic, Ghana, Kenya, Mongolia, Morocco, Papua New Guinea, Peru, and Vietnam.

This latest partnership between Singapore and Sri Lanka demonstrates their united dedication to addressing climate change and fostering sustainable growth.