On 16/9, the Ministry of Agriculture and Rural Development, on behalf of the Vietnamese government, signed an online agreement with Singapore, implementing Article 6 of the Paris Agreement on climate change.
Singapore is a global pioneer in developing the carbon credit market. The country enacted the Carbon Pricing Act in 2019, developing international carbon credit exchanges with brands like CIX and ACX. They are also in the process of establishing a global carbon finance center.
Meanwhile, Vietnam is preparing to pilot a domestic carbon exchange until the end of 2028, with official operation starting in 2029.
A carbon credit is a tradable permit or certificate that gives the holder the right to emit one ton of CO2 or another greenhouse gas.
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Vietnam and Singapore sign a carbon credit transfer agreement. Photo: Gia Chinh |
Vietnam and Singapore sign a carbon credit transfer agreement. Photo: Gia Chinh
Acting Minister of Agriculture and Rural Development Tran Duc Thang expects the agreement will facilitate Vietnamese organizations and businesses in developing greenhouse gas emission reduction projects. These projects will generate carbon credits that meet international standards, are recognized, and can be transferred to Singapore.
According to Thang, specialized agencies will consult and finalize regulations to ensure the agreement takes effect quickly. Vietnam and Singapore will engage in technical-level exchanges to identify greenhouse gas emission reduction projects and generate carbon credits in line with the two countries’ priorities.
Grace Fu, Singapore's Minister for Sustainability and the Environment, and Minister-in-charge of Trade Relations at the Ministry of Trade and Industry, stated that Vietnam is one of the first Southeast Asian countries to sign such an agreement with Singapore.
Minister Fu said this agreement will help Southeast Asian countries cooperate to address climate change, increase emission reduction efforts, and open pathways toward sustainable development.
According to World Bank (WB) statistics, based solely on the verification of international organizations Verra and Gold Standard, Vietnam has issued over 22 million carbon credits since 2003. More than half of these were issued last year. Under the Clean Development Mechanism (CDM), Vietnam has been verified and exchanged over 40 million credits.
Gia Chinh
