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illuminem summarises for you the essential news of the day. Read the full piece on Eco Business or enjoy below:
🗞️ Driving the news: Singapore is close to finalising its first carbon trading agreement under Article 6 of the Paris Agreement with another ASEAN country, potentially within the coming months
• According to a government official, negotiations are most advanced with Thailand, though other regional partners are also being engaged
• The city-state has so far struggled to secure sufficient eligible credits despite existing partnerships with seven countries
🔭 The context: Article 6 of the Paris Agreement enables countries to cooperate on carbon markets by trading emissions reductions to help meet national climate targets
• Singapore introduced a domestic carbon tax in 2019 and committed to achieving net-zero by 2050, partly through international offsets
• However, tightening rules on environmental integrity and eligibility have limited the supply of credible credits, slowing progress on bilateral deals even with established trading partners
🌍 Why it matters for the planet: A successful ASEAN Article 6 deal could create a model for credible regional carbon markets and strengthen cooperation among Southeast Asian nations in addressing climate change
• For Singapore, it would help bridge the gap between its domestic abatement potential and its ambitious net-zero goals while demonstrating adherence to robust international standards
• Risks remain around ensuring the environmental integrity and transparency of traded credits
⏭️ What's next: Formal announcement of the deal, likely with Thailand or another ASEAN partner, is expected before year-end
• Negotiations will need to resolve key issues, including corresponding adjustments, credit verification, and avoiding double counting
• Success could catalyse further bilateral agreements and position Singapore as a regional hub for high-integrity carbon trading under Article 6
• Observers will watch closely how the deal aligns with emerging global standards
💬 One quote: "We are working towards securing Singapore’s first Article 6 agreement in the region in the coming months, which will be a critical step in meeting our net-zero ambitions," the unnamed government official
📈 One stat: Singapore currently maintains carbon trading partnerships with seven countries, though none have yet resulted in concluded Article 6 transactions
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