Written Reply to Parliamentary Question on Carbon Credits

Written Reply to Parliamentary Question on Carbon Credits by Ms Grace Fu, Minister for Sustainability and the Environment

Ms Foo Mee Har: To ask the Minister for Sustainability and the Environment when can companies expect to purchase carbon credits through Singapore’s carbon market cooperation agreements with other countries.

Answer:

1 Starting from 2025, carbon tax-liable companies can purchase international carbon credits (ICCs) generated from authorised projects to offset up to 5% of their 2024 taxable emissions.

2 Singapore has signed Implementation Agreements (IAs) with Ghana and Papua New Guinea on Article 6 carbon credits cooperation. Operationalisation of the Singapore-Papua New Guinea IA is pending Parliamentary approval of its domestic framework required for participation in Article 6 cooperation. For the Singapore-Ghana IA, we launched the call for project applications on 30 September 2024, and are working closely with Ghana to assess the applications. When they are authorised by both Ghana and Singapore, these projects will be published online on Singapore’s Carbon Markets Cooperation website. ICCs generated from these projects can be purchased and used for carbon tax offset.

3 We are also pursuing similar partnerships with more than 20 other countries, including Bhutan, Cambodia, Chile, Peru, and Mongolia.

4 The availability of ICCs will require active participation from the private sector, and the Singapore Government will continue supporting these efforts as more IAs are signed. For example, in July 2024, Minister of State Alvin Tan led an inaugural business mission to Ghana, to facilitate the development of carbon credit projects under the Singapore-Ghana IA. The Economic Development Board has also established the Singapore Carbon Market Alliance to bring corporates together to foster a vibrant and trusted carbon market, and facilitate companies’ access to Article 6-compliant ICCs.