DUBAI - Singapore and Fiji have signed an agreement to collaborate on carbon markets, the Republic said on Dec 3.
“As members of the Alliance of Small Island States, Singapore and Fiji are both vulnerable to the effects of climate change,” said Minister for Trade and Industry Gan Kim Yong, who signed the memorandum of understanding (MOU) with Fiji’s Prime Minister and Minister for Climate Change Sitiveni Rabuka.
“The MOU is a step forward for both our countries to collaboratively accelerate climate action,” he added.
A working group comprising Singapore and Fiji government officials will oversee the implementation of the agreement.
Fiji, like Singapore, is a low-lying nation that is vulnerable to sea-level rise and coastal flooding.
Many villagers in Fiji have already been forced to relocate, as measures such as building sea walls and planting mangroves are no longer effective in protecting them.
A similar MOU was signed on Dec 2 with Rwanda.
To ensure a diversified portfolio of carbon credits, Singapore has signed at least a dozen MOUs with countries such as Chile, Colombia and Mongolia, paving the way for possible implementation agreements with these nations.
“Such collaborations can mobilise finance to unlock additional mitigation outcomes to meet both countries’ climate targets. The collaboration will prioritise sustainable development and co-benefits to the local communities and economy,” the Ministry of Trade and Industry said on Dec 3.
So far, Singapore has substantively concluded negotiations on implementation agreements on developing carbon credit projects and trading carbon credits with Ghana and Vietnam.
Companies in Singapore can offset up to 5 per cent of their taxable emissions from 2024 by purchasing carbon credits from countries that the Republic has implementation agreements with.
This is provided that the carbon credits meet Singapore’s high environmental integrity criteria, which include ensuring that the projects lead to real emissions reductions.
The carbon tax is set to increase from $5 per tonne currently to $25 per tonne in 2024.
These implementation agreements, which are aligned with Article 6 of the Paris Agreement, have mechanisms in place to ensure that there is no double counting.
This means that carbon credits used by Singapore companies to offset their taxable emissions have to be “struck off” the registry and can no longer be used by the other country to count towards its national climate targets.
Senior Minister Teo Chee Hean, who is attending the COP28 climate conference in Dubai from Dec 2 to 5, also met Prime Minister Rabuka on the sidelines on Dec 3.
Mr Teo, who is also the Coordinating Minister for National Security, delivered Singapore’s national statement on Dec 2, joining about 140 world leaders in highlighting what their countries are doing about climate change.
Minister for Sustainability and the Environment Grace Fu will be attending COP28 from Dec 7 to 12, and will be co-facilitating negotiations on mitigation with Norway.
