Singapore signs Implementation Agreement on carbon credits collaboration with Mongolia

29 October 2025

On 6 October 2025, the Ministry of Trade and Industry (“MTI”) announced that Singapore and Mongolia signed an implementation agreement on carbon credits collaboration under Article 6 of the Paris Agreement (“Implementation Agreement”). This is Singapore’s 10th Implementation Agreement on carbon credits collaboration following agreements with Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay, Thailand, and Vietnam.

The Implementation Agreement establishes a legally binding framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement. Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook. Information on the process for authorisation of these carbon credits projects and eligible carbon crediting methodologies under the Implementation Agreement will be published in due course.

Singapore is committed to channelling the value equivalent to 5% share of proceeds from authorised carbon credits towards climate adaptation measures in Mongolia. Singapore is also committed to having 2% of the correspondingly adjusted carbon credits authorised under this Implementation Agreement cancelled at first issuance. The carbon credits that are cancelled cannot be sold, traded, or counted towards any country’s emission targets, and serves as a contribution towards a net reduction of global emissions.

This collaboration will advance both countries’ climate ambitions by directing financing towards unlocking additional mitigation potential in Mongolia. The carbon mitigation projects authorised under this Implementation Agreement will promote sustainable development and deliver tangible benefits to local communities, such as creation of jobs, improved access to clean water, enhanced energy security, and reduction of environmental pollution.

Reference materials

The press release is available on the MTI website www.mti.gov.sg.