Timeline for Companies to Purchase Carbon Credits Through Singapore's Carbon Market Cooperation Agreements
Ministry of Sustainability and the EnvironmentSpeakers
Summary
This question concerns the timeline for companies to purchase carbon credits through Singapore’s international carbon market cooperation agreements. Ms Foo Mee Har inquired about project availability, and Minister for Sustainability and the Environment Ms Grace Fu Hai Yien stated that firms can offset up to 5% of taxable emissions starting in 2025. Implementation Agreements have been signed with Ghana and Papua New Guinea, with project applications for Ghana currently being assessed and partnerships pursued with over 20 other nations. Minister of State Alvin Tan led a business mission to Ghana to facilitate project development, while the Economic Development Board established the Singapore Carbon Market Alliance. These initiatives aim to foster a vibrant carbon market and facilitate private sector access to Article 6-compliant international carbon credits.
Transcript
38 Ms Foo Mee Har asked the Minister for Sustainability and the Environment when can companies expect to purchase carbon credits through Singapore’s carbon market cooperation agreements with other countries.
Ms Grace Fu Hai Yien: Starting from 2025, carbon tax-liable companies can purchase international carbon credits (ICCs) generated from authorised projects to offset up to 5% of their 2024 taxable emissions.
Singapore has signed Implementation Agreements (IAs) with Ghana and Papua New Guinea on Article 6 carbon credits cooperation. Operationalisation of the Singapore-Papua New Guinea IA is pending Parliamentary approval of its domestic framework required for participation in Article 6 cooperation. For the Singapore-Ghana IA, we launched the call for project applications on 30 September 2024 and are working closely with Ghana to assess the applications. When they are authorised by both Ghana and Singapore, these projects will be published online on Singapore’s Carbon Markets Cooperation website. ICCs generated from these projects can be purchased and used for carbon tax offset.
We are also pursuing similar partnerships with more than 20 other countries, including Bhutan, Cambodia, Chile, Peru and Mongolia.
The availability of ICCs will require active participation from the private sector, and the Singapore Government will continue supporting these efforts as more IAs are signed. For example, in July 2024, Minister of State Alvin Tan led an inaugural business mission to Ghana to facilitate the development of carbon credit projects under the Singapore-Ghana IA. The Economic Development Board has also established the Singapore Carbon Market Alliance to bring corporates together to foster a vibrant and trusted carbon market and facilitate companies’ access to Article 6-compliant ICCs.