S’pore, Malawi sign agreement to collaborate on carbon credits

Singapore and Malawi have inked an agreement to explore carbon trading in the future, paving the way for the Republic to eventually buy carbon credits from the southeastern African nation.

- Ang Qing Correspondent

Both countries will now work towards an implementation agreement, which would help Singapore meet its climate targets while channelling finance to the landlocked African country.

The memorandum of understanding was signed on Nov 20 between Minister for Sustainability and the Environment Grace Fu and Malawi's Minister of Natural Resources, Energy and Mining Jean Mathanga at the Singapore Pavilion of UN climate change summit COP30 in Brazil’s Belem.

It will facilitate the exchange of best practices and knowledge on carbon credit mechanisms, as well as the identification of mutually beneficial carbon credit projects that will support both countries in achieving their climate targets, Singapore’s Ministry of Trade and Industry said.

Once the memorandum advances to an implementation agreement, the Singapore Government will be able to purchase carbon credits to meet its climate goals under the Paris Agreement, the international treaty signed by nearly 200 countries to limit global warming.