Singapore and Thailand launched a joint call for applications for carbon credit projects, the Ministry of Trade and Industry (MTI) said (31/03).

Authorised projects will enable carbon mitigation efforts in Thailand and support both countries’ climate ambitions.

Carbon Credits Aligned with Paris Agreement

MTI stated that the projects will generate carbon credits aligned with Article 6 of the Paris Agreement.

These credits may be used by Singapore-based companies subject to carbon tax to offset up to 5 per cent of their taxable emissions under the International Carbon Credit (ICC) framework.

Agreement Establishes Legal Framework for Credit Transfers

The application call follows a bilateral implementation agreement on carbon credit cooperation signed in August 2025.

The agreement sets out a legally binding framework for the international transfer of correspondingly adjusted, high-integrity carbon credits aligned with Article 6.

This is Singapore’s first implementation agreement with an ASEAN country and its fifth call for such project applications, after Bhutan, Ghana, Peru, and Rwanda.

Three-Stage Process for Project Applications

Interested parties may submit applications for carbon credit projects in Thailand, which will be jointly reviewed by both governments on a rolling basis.

The first stage requires a concept note outlining the project and its methodology, including how it ensures environmental integrity.

The second stage requires a project design document and a validation report from a third-party auditor to confirm compliance with programme requirements.

After receiving authorisation letters from both countries, applicants can register and implement the project.

The third stage requires corresponding adjustments to the carbon credits generated, in line with Article 6, Paragraph 2 of the Paris Agreement.

Projects Aim to Support Sustainable Development

MTI said the projects will promote sustainable development through targeted financing.

They are expected to benefit local communities through job creation and reduced environmental pollution.

PHOTO: FREEPIK

This article was created with AI assistance.

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