Vietnam becomes Republic’s second S-E Asian partner in carbon credit pact

Vietnam has become the second Southeast Asian country to seal a carbon trading agreement with Singapore after Thailand, expanding the Republic’s market for carbon credits generated in the region.

- Ang Qing Correspondent

The bilateral agreement makes Vietnam the ninth country that the Singapore Government and carbon tax-liable companies here can buy eligible credits from, to offset a fraction of their planet-warming emissions.

The pact, dubbed an implementation agreement, was signed virtually on Sept 16 by Singapore's Minister for Sustainability and the Environment and Minister-in-Charge of Trade Relations Grace Fu and Vietnam's Acting Minister of Agriculture and Environment Tran Duc Thang.

The eight other countries that have such implementation agreements with Singapore are Bhutan, Chile, Ghana, Papua New Guinea, Peru, Paraguay, Rwanda and Thailand.

An implementation agreement is a legally binding document that governs the international transfer of carbon credits between two countries.

Under the Paris Agreement — an international treaty adopted by195 parties to limit global warming — countries can buy carbon credits generated in other jurisdictions to meet domestic climate targets to reduce emissions.