Singapore and the Philippines have signed an agreement which will open the way to a new era of carbon credits in the region.

The two governments used ASEAN Climate Week in Manila as an opportunity to  an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement.

The agreement was signed between Singapore’s minister for sustainability and the environment and minister in-charge of trade relations Grace Fu and the Philippines’ department of environment and natural resources secretary Juan Miguel T. Cuna.

A joint statement explained the Implementation Agreement establishes a legally binding framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement.

It added project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook. Information on the process for authorisation of these carbon credits projects and eligible carbon crediting methodologies under the Implementation Agreement will be published in due course.

Fu said, “Singapore and the Philippines share a strong and longstanding partnership, and as fellow ASEAN Member States, are working together closely on regional and bilateral initiatives. The signing of the Implementation Agreement during ASEAN Climate Week is an important milestone in our bilateral relations. This Agreement will deepen collaboration between our two countries, channel climate finance towards impactful projects in the Philippines and unlock new opportunities in carbon markets for businesses and local communities. Together, ASEAN can lead the way in building a low-carbon future that delivers tangible benefits across the region.”

Cuna added: “The signing of our Implementation Agreement marks a significant step forward in our shared pursuit of a low-carbon, and climate-resilient future for our region. To our partners from Singapore: this moment reflects the completion of rigorous technical work and the strength of a partnership built on trust, transparency, and a shared ambition to operationalise high-integrity climate cooperation under the Paris Agreement. For the Philippines, entering into this Implementation Agreement under Article 6.2 is a strategic decision – one grounded in our national priorities, our development aspirations, and our commitment to global climate action.”

“This collaboration will advance both countries’ climate goals by directing financing towards unlocking additional mitigation potential in the Philippines,” Cuna explained. “The carbon mitigation projects authorised under this Implementation Agreement will promote sustainable development and deliver tangible benefits to local communities, such as creation of jobs, enhanced energy security, and reduction of environmental pollution.”