Singapore has signed a new implementation agreement with Mongolia to generate carbon units (also known as carbon credits) under Article 6 of the Paris Agreement, marking its tenth such deal. The city-state’s expanding portfolio targets partnerships with Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay, Thailand, and Vietnam.
The largest boreal taiga forest in Mongolia, with rolling hills and newly planted saplings. AI generated picture.
Under the terms of the agreement, Singapore will channel the equivalent of 5% of proceeds from authorised carbon credits toward environmental adaptation initiatives in Mongolia, according to the country’s Ministry of Trade and Industry (MTI). Additionally, 2% of the resulting Internationally Transferrable Mitigation Outcomes (ITMOs) will be cancelled upon the first issuance to ensure a tangible contribution to global emission reductions.
The process of ‘corresponding adjustments’ prevents double counting by requiring Mongolia to reflect the transferred emission reductions in its national greenhouse gas inventory. The cancelled ITMOs will not be sold or counted toward any national targets, but will instead ‘serve as a contribution towards a net reduction of global emissions’, MTI noted. Information on the authorisation process and eligible carbon crediting methodologies ‘will be published in due course’, according to the ministry.
Mongolia has also signed similar bilateral arrangements with Japan and South Korea, as it builds out its framework for carbon trading under Article 6.
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Meanwhile, Singapore continues to develop a parallel agreement with the Philippines. Both countries signed a memorandum of understanding in August 2024 to lay the foundation for a future Article 6 deal. Last week, representatives from the Makati Business Club, the Philippine-Singapore Business Council, and the Singapore Embassy convened in Manila to explore the next steps for establishing a carbon market.
‘The Forum recognised that sustaining Philippine-Singapore collaboration and translating commitments into concrete projects would require consistent and multi-stakeholder effort, even after the Implementation Agreement is in place’, the MBC stated.
Singapore has been accelerating its engagement under Article 6, including a recent purchase of 2.175 million nature-based carbon credits worth $59.45 million from projects in Ghana, Peru, and Paraguay. While Mongolia has now formalised its agreement, the Philippines has advanced more quickly in project implementation through existing mechanisms such as its Joint Crediting Mechanism with Japan.
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As countries like Singapore and Mongolia forge new Article 6 partnerships, the global carbon market is clearly evolving from planning to action. Each agreement reinforces the importance of integrity, transparency, and measurable results—values that also define our approach at Green Earth. By championing high-quality, nature-based carbon projects that enable businesses to compensate for their emissions responsibly, we help organisations turn environmental commitments into measurable results. Now is the time to take the next step toward credible, lasting impact with Green Earth.
