SG-Indonesia pact builds climate finance plan for carbon credits

The framework aligns directly with Article 6 of the Paris Agreement.

Singapore and Indonesia have signed a Memorandum of Understanding (MoU) to collaborate on carbon credits under Article 6 of the Paris Agreement.

Both countries will exchange information and technical expertise on carbon markets and work towards an Implementation Agreement aligned with Article 6.

They will also identify high-integrity carbon credit projects that can support both countries’ Nationally Determined Contributions.

The projects may cover areas such as forest protection, coastal ecosystem restoration, and clean technology solutions that reduce emissions.

“This MoU signals Singapore's and Indonesia's intent to work towards creating a framework for channelling climate finance into high-integrity projects,” said Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong.

“Crucially, these projects will support livelihoods and bring direct benefits for the local and indigenous communities who are most affected by climate change,” he added.

Indonesia Minister of Environment Mohammad Jumhur Hidayat said the partnership could help mobilise investment for emissions reduction, biodiversity conservation, and ecosystem restoration.

The agreement was signed on 7 July during the Singapore-Indonesia Leaders’ Retreat by Gan and Jumhur.