Singapore has signed its eighth international carbon trading agreement under Article 6 of the Paris Agreement, this time with Thailand. The deal, announced at the Singapore Regional Business Forum in Bangkok, marks the first such partnership between Singapore and a fellow member of the Association of Southeast Asian Nations (ASEAN).
Lumphini Park, Bangkok’s green lungs, with a water monitor lizard in the foreground. AI generated picture.
The agreement establishes a legally binding framework for the transfer of correspondingly adjusted carbon credits under Article 6.2, creating a pathway for the two nations to collaborate on international carbon markets. It was formalised by Singapore’s Minister for Manpower and Minister-in-charge of Energy and Science and Technology, Tan See Leng, and Thailand’s Minister of Natural Resources and Environment, Chalermchai Sri-on.
‘This implementation agreement is a testament to our strong bilateral ties and collective resolve to implement the Paris Agreement in practical and impactful ways’, said Minister Tan. He added that the deal could act as ‘a pathfinder for the region, demonstrating how Southeast Asia can develop and scale high-quality carbon credit projects that will drive meaningful emissions reductions, while unlocking new opportunities in the carbon market for businesses.’
Thailand expects the partnership to attract financing for projects aligned with Article 6, spanning forestry, renewable energy, and zero-emission transport. ‘We value Singapore's partnership in unlocking climate finance and advancing credible carbon credit projects in Thailand–from forestry and clean energy to zero-emission transport–that deliver environmental, economic, and social benefits for our people’, Minister Chalermchai said.
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The credits generated under this framework will be usable by Singapore-based companies to offset up to 5% of their taxable emissions under the city-state’s International Carbon Credits (ICC) scheme. They may also contribute toward countries’ Nationally Determined Contributions (NDCs) or be applied by airlines under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
As part of the deal, Singapore has committed to direct 5% of sales proceeds towards environmental adaptation projects in Thailand, including forest management, flood resilience, and water resources initiatives. Additionally, 2% of credits will be cancelled at issuance to ensure a measurable reduction in global emissions.
The two countries approved a draft version of the agreement earlier this year. While this is Singapore’s first Article 6 implementation agreement with an ASEAN partner, it has previously signed similar deals with Papua New Guinea, Ghana, Bhutan, Peru, Chile, Rwanda, and Paraguay.
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As governments like Singapore and Thailand expand cooperation under Article 6, the message is clear: High-integrity carbon projects are no longer optional—they are central to global environmental and economic strategies. By creating frameworks that channel finance into forestry, regenerative agriculture, and ecosystem restoration, countries are demonstrating how nature-based solutions can scale across borders. At DGB Group, we put nature first—developing large-scale restoration projects that generate trusted carbon units while supporting communities and biodiversity. With international demand for quality credits accelerating, now is the moment to participate in this growing market and address your business’ carbon footprint.
