Singapore Signs Implementation Agreement with Ghana to Collaborate On Carbon Credits

Singapore Signs Implementation Agreement with Ghana to Collaborate on Carbon Credits Under Article 6 of the Paris Agreement

Singapore and Ghana signed an Implementation Agreement on carbon credits cooperation under Article 6 of the Paris Agreement on 27 May 2024. The Agreement was signed virtually between Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations Grace Fu, and Ghana’s Minister of Environment, Science, Technology and Innovation Ophelia Hayford.

After the signing, both countries will commence with the ratification process and operationalise the Agreement. This sets out a legally binding framework and processes for the generation and international transfer of carbon credits between Singapore and Ghana, aligned with Article 6 of the Paris Agreement.

This collaboration will advance both countries’ climate ambition and channel financing towards additional mitigation efforts. The carbon credit projects authorised under the Implementation Agreement will seek to promote sustainable development and generate benefits for local communities, such as creation of jobs, access to clean water, improved energy security, and reduction of environmental pollution.

Under the Implementation Agreement, project developers will be required to make a contribution equivalent to 5% share of proceeds from authorised carbon credits towards climate adaptation in Ghana, which helps Ghana prepare for and adjust to the impacts of climate change. They will also be required to cancel 2% of authorised carbon credits at first issuance to ensure additional contribution to overall mitigation of global emissions.

Under Singapore’s International Carbon Credit (ICC) framework, eligible ICCs generated under this Implementation Agreement may be used by Singapore-based carbon tax-liable companies to offset up to 5% of their taxable emissions.

Minister Fu said, “Singapore and Ghana share many mutual interests in the sustainability sphere. The conclusion of the Implementation Agreement is testament to our shared commitment to advance global climate action through high-integrity carbon markets. The carbon credit projects that are implemented under this Agreement will generate climate benefits as well as benefits to our economies. Singapore will continue our efforts to work with like-minded partners like Ghana to co-create opportunities for a sustainable future.”

This is the second Implementation Agreement for Singapore, after the first with Papua New Guinea which was signed in December 2023.