The Manila Times
MANILA, Philippines – The Philippines and Singapore have formally signed a landmark agreement creating a legal framework for the generation and transfer of carbon credits, the Singapore Embassy in Manila announced Thursday evening. The embassy said project developers could soon leverage this deal to develop high-quality carbon credit projects that were aligned with Article 6 of the Paris Agreement. Carbon credits are units obtained from entities that remove or reduce greenhouse gas emissions. One tradable carbon credit equals one ton of carbon dioxide or the equivalent amount of a different greenhouse gas reduced. The United Nations Climate Change said companies or individuals could purchase and use carbon credits to compensate for their greenhouse gas emissions or to simply support climate action. The Singapore Ministry of Trade and Industry said adjusted carbon credits authorized under the deal could be used to offset up to 5 percent of a company’s taxable emissions. Singapore, it said, would then channel 5 percent share of proceeds from authorized carbon credits towards climate adaptation measures in the Philippines. Department of Environment and Natural Resources Secretary Juan Miguel Cuna and Singaporean Minister for Sustainability and the Environment Grace Fu signed the deal during the Association of Southeast Asian Nations (ASEAN) Climate Week in Manila on April 30, in a virtual ceremony. Cuna said Manila’s entry into this agreement is a "strategic decision," and is grounded on national priorities, development goals, and “commitment to global climate action.” Fu said the deal signals the strong partnership between Singapore and the Philippines, and their commitment to develop and implement regional and bilateral initiatives. “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,” she said. “Together, Asean can lead the way in building a low-carbon future that delivers tangible benefits across the region,” she added. Singaporean Ambassador to the Philippines Constance See added that there was “strong interest” from Singapore companies in the Philippines, and that the embassy looks to work closely with Filipino partners to bring good projects and investment to market. “The Philippines is one of the most mega-biodiverse countries in the world. It is richly endowed with natural capital, and the Philippine government has shown clear leadership and commitment to climate action. The Philippines is exceptionally well-positioned to be a major player in the global carbon market,” she said. “It is especially meaningful that this signing comes during the Philippines' Asean Chairship, which underscores the Philippines' leadership on climate action issues and the region’s growing focus on practical cooperation in sustainability and resilient growth,” she added. Projects facilitated under the deal, the embassy said, would create more jobs in local communities, and drive innovation in the growing carbon market ecosystem. The embassy said the process for authorization of projects and eligible carbon crediting methodologies under the deal would be announced in due course.
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