Vietnam and Singapore sign a carbon cooperation agreement under Article 6 of the Paris Agreement

On September 16, the governments of Vietnam and Singapore officially signed the Implementation Agreement under Article 6 of the Paris Agreement on climate change. The event was held online and attended by Mr. Tran Duc Thang, Acting Minister of Agriculture and Environment of Vietnam, and Ms. Grace Fu, Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations of Singapore.

The signing is regarded as an important milestone, affirming the two countries’ commitment to close cooperation and their pioneering role in the international carbon market, contributing to global efforts to address climate change.

Under the agreement, a bilateral legal framework will be established, enabling Vietnamese organizations and businesses to develop greenhouse gas emission reduction projects and generate carbon credits according to international standards, which can then be recognized and transferred to Singapore. Details on the project approval process and the list of eligible methodologies will be announced in the near future.

A milestone in climate cooperation

Speaking at the signing ceremony, Acting Minister Tran Duc Thang emphasized: “Today’s agreement marks an important step forward in climate cooperation between our two countries, affirming the role and responsibility of Vietnam and Singapore in promoting the exchange of greenhouse gas emission reductions and carbon credits.”

He noted that Singapore is one of the pioneering countries in developing the carbon credit market, with its Carbon Pricing Act since 2019 and international trading platforms such as CIX and ACX. Meanwhile, Vietnam is completing its institutional and policy framework to develop the domestic carbon market, from the 2020 Environmental Protection Law to the latest decrees, aiming to connect with the regional and global markets.

“This agreement provides a legal basis for Vietnamese businesses to register emission reduction projects and generate carbon credits, opening new climate finance opportunities, encouraging investment in advanced technologies, promoting sustainable agriculture, and moving toward a circular economy,” Mr. Thang emphasized.

He also stated that the Ministry of Agriculture and Environment will coordinate with relevant agencies to finalize the implementation plan soon, while hoping that Singaporean businesses will actively invest in projects in Vietnam, contributing to shaping the regional carbon market.

A new green investment opportunity

Minister Grace Fu emphasized that 2025 holds special significance for both countries: Vietnam celebrates 80 years since its founding, 50 years of national reunification, and 30 years of ASEAN membership; Singapore marks 60 years of independence.

“Today’s agreement not only reflects our commitment to addressing climate change but also opens new green investment opportunities in Vietnam, providing financial support for climate adaptation activities,” said Grace Fu.

Minister Grace Fu emphasized that Vietnam is one of Singapore’s most important economic partners. In 2024, Vietnam ranked 11th among Singapore’s largest trading partners, while Singapore remains the largest foreign investor in Vietnam.

According to the Minister, technical teams from both sides have worked persistently for years to reach this agreement. She expressed confidence that, once implemented, the document will promote climate cooperation, strengthen green investment connectivity, and position Vietnam and Singapore as pioneering countries in ASEAN for international carbon credit exchange mechanisms.

“Under the spirit of a comprehensive strategic partnership, we must continue our efforts to bring this agreement into practice promptly, delivering tangible benefits to the people of both countries and contributing to our shared sustainable development goals,” she added.

Today’s cooperation between Vietnam and Singapore will help promote greenhouse gas emission reduction activities, attract international capital to Vietnam, and bring tangible benefits to local communities, such as job creation and improved access to clean water, while also enhancing Vietnam’s energy security, reducing environmental pollution, and supporting sustainable development.