S'pore Seals Carbon Credit Deal With Thailand, Its First S-E Asian Partner

Tan See Leng hopes deal will show how region can develop carbon credit projects

- Ang Qing

Thailand has become the first South-east Asian country to finalize a carbon trading agreement with Singapore, paving the way for the Republic to buy carbon credits generated there.

The bilateral agreement allows the Singapore Government or carbon tax-liable firms here to buy eligible credits in Thailand to offset a fraction of their planet-warming emissions.

The implementation agreement was signed on Aug 19 by Dr Tan See Leng, Singapore's Minister for Manpower and Minister-in-charge of Energy and Science and Technology, and Thai Minister of Natural Resources and Environment Chalermchai Sri-on on the sidelines of the ninth Singapore Regional Business Forum.

The annual event organised by the Singapore Business Federation brings together policymakers, top business leaders, senior government officials and other stakeholders to explore business opportunities in the region.

This is the eighth implementation agreement that Singapore has so far. The seven other countries that have such pacts with Singapore are Papua New Guinea, Ghana, Bhutan, Peru, Chile, Rwanda and Paraguay.

Under the Paris Agreement – an international treaty adopted by 195 parties to limit global warming – countries can buy carbon credits generated in other jurisdictions to meet domestic climate targets.

The carbon markets will benefit carbon credit buyers, as buying credits from elsewhere can sometimes be cheaper than reducing emissions on their own.

Countries hosting these projects also stand to gain as these climate-friendly projects become an additional source of revenue.