Singapore's Plans to Obtain Internationally Transferred Mitigation Outcomes to Meet Emission Reduction Commitments
Ministry of Sustainability and the EnvironmentSpeakers
Summary
This question concerns Singapore’s strategy to obtain 2.51 million tonnes of carbon dioxide equivalent in Internationally Transferred Mitigation Outcomes (ITMOs) annually for its 2021-2030 commitments. Mr Dennis Tan Lip Fong inquired about procurement sources, and Minister Grace Fu Hai Yien explained that Article 6-compliant International Carbon Credits (ICCs) will be sourced through two primary avenues. The first is the ICC Framework, which allows tax-liable companies to offset 5% of taxable emissions using credits from Implementation Agreements signed with countries like Ghana and Papua New Guinea. Secondly, the Government procures ICCs directly, having recently closed a Request for Proposal for nature-based solutions that is currently under evaluation. Singapore is also engaging over 20 other countries to sign similar agreements for high-quality mitigation outcomes.
Transcript
7 Mr Dennis Tan Lip Fong asked the Minister for Sustainability and the Environment in respect of Singapore's 2024 Biennial Transparency Report on its greenhouse gas inventory and progress to reduce national emissions and in which Singapore estimated the use of 2.51 million tonnes per annum of Internationally Transferred Mitigation Outcomes (ITMOs) to transfer greenhouse gas mitigation performance to other countries in order to meet its emission reduction commitments from 2021 to 2030, where does the Government plan to obtain the ITMOs from.
Ms Grace Fu Hai Yien: In Singapore's 2024 Biennial Transparency Report, Singapore estimated the use of 2.51 million tonnes of carbon dioxide equivalent (MtCO2e) per annum of Internationally Transferred Mitigation Outcomes (ITMOs) over the Nationally Determined Contribution implementation period, that is, from 2021 to 2030, to meet our emissions reduction commitments. High-quality ITMOs will be obtained in the form of International Carbon Credits (ICCs) compliant with Article 6 of the Paris Agreement. There are two main avenues of obtaining these ICCs.
The first avenue is through the ICC Framework, which allows carbon tax-liable companies to surrender ICCs generated from projects authorised under Singapore's Article 6 Implementation Agreements (IAs), to offset up to 5% of their taxable emissions. Singapore has signed IAs with Ghana and Papua New Guinea on Article 6 carbon credits cooperation. We are also engaging more than 20 other countries to sign similar agreements.
The second avenue is through Government procurement. For example, the Government launched a Request for Proposal (RFP) to source for ICCs from nature-based solutions last year. RFP closed on 14 February 2025 and evaluations of the proposals are underway.