Written Reply to Parliamentary Question on Carbon Credits

7 August 2024

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

Mr Saktiandi Supaat: To ask the Minister for Sustainability and the Environment (a) what is the amount of carbon credits available globally that meets the Eligibility Criteria and Eligibility List published by the Ministry and NEA; (b) how does that amount compare to the local demand for carbon credits given the five-fold increase in carbon tax this year; and (c) what are the other concrete plans to boost the amount of eligible carbon credits for carbon tax- liable companies to purchase.

Answer:

1 It is too early to assess the amount of carbon credits that would be eligible under Singapore’s International Carbon Credit (ICC) Framework. Internationally, there are still ongoing negotiations on Article 6 of the Paris Agreement at the United Nations Climate Change Conferences, to finalise and effect the framework for countries to cooperate on carbon credits.

2 Meanwhile, Singapore continues to support the development of international carbon markets, such as facilitating capacity building under the Article 6 Implementation Partnership, developing high integrity markets for forestry carbon credits through the Forest and Climate Leaders’ Partnership (FCLP), and enhancing transparency in carbon credit transactions through the Climate Action Data Trust (CAD Trust).

3 We are also pursuing Article 6 partnerships with more than 20 countries, and have signed Implementation Agreements with Papua New Guinea and Ghana. We are actively working with our counterparts to further our collaboration and operationalise these partnerships.

4 While we pursue these efforts, the successful scaling up of carbon markets will also require active participation from the private sector. The Singapore Government will support these efforts. For example, in July 2024, the Ministry of Trade and Industry organised an inaugural business mission to Ghana, comprising 22 Singapore-based project developers, traders, investors and carbon services companies, to spur the development of high-quality Article 6-compliant carbon credit projects.