Singapore, Laos sign carbon credit deal under Paris Agreement

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Carbon Herald or enjoy below:

🗞️ Driving the news: Singapore and Laos signed a legally binding framework on 4 September for developing and transferring carbon credits under Article 6 of the Paris Agreement
• It is Singapore's twelfth bilateral implementation agreement and its fourth with an ASEAN member state
• Procedures for project authorisation and eligible crediting methodologies will follow later

🔭 The context: The agreement covers credits subject to corresponding adjustments, preventing the same reductions being counted by both host and buyer
• Authorised credits may offset up to 5% of a company's taxable emissions under Singapore's International Carbon Credits framework, and can count toward national commitments or CORSIA aviation requirements
• Singapore will direct 5% of proceeds toward climate adaptation in Laos, and 2% of adjusted credits will be cancelled on issuance

🌍 Why it matters for the planet: Corresponding adjustments and the 2% cancellation are the integrity mechanisms that distinguish Article 6 from voluntary markets
• The delivery of framework depends on the methodologies to be published, since the environmental value rests on whether the underlying projects would have happened anyway.

⏭️ What's next: Singapore's Ministry of Trade and Industry will publish authorisation procedures and eligible methodologies
• Projects are expected to support emissions reductions alongside job creation and reduced pollution in Laos

💬 One quote: "We are proud to show that our region can lead in building carbon markets that deliver real, tangible benefits for our people and for the global effort against climate change" — Linkham Douangsavanh, Minister of Agriculture and Environment, Laos

📈 One stat: 5% of proceeds directed to Lao adaptation, with 2% of credits cancelled at issuance.

Subscribe to our free newsletters to never miss a beat in sustainability.

The world needs sustainability knowledge. At illuminem, no interest group or shareholder can influence our work. Thank you for supporting our mission to make high-quality and independent sustainability information free for all. Every contribution helps. Thank you for donating today