Singapore Commits US$15 Mln To Boost Article 6 Carbon Markets

By Anas Hassan

SINGAPORE, May 19 (Bernama) -- Singapore has pledged US$15 million (RM59.6 million) to the Global Green Growth Institute (GGGI) Carbon Transaction Facility (CTF) to strengthen international collaboration on high-integrity Article 6 carbon markets and scale up climate action.

In a statement on Tuesday, the Trade and Industry Ministry (MTI) said Singapore seeks to address practical barriers hindering progress in Article 6 carbon markets, from high transaction costs and limited institutional capacity in host countries to the lack of project development funding.

Article 6 of the Paris Agreement enables countries to cooperate in meeting their climate commitments, or Nationally Determined Contributions (NDCs), through the transfer of carbon credits known as Internationally Transferred Mitigation Outcomes (ITMOs).

MTI said the contribution will be channelled through two facilities, with US$5 million (RM19.9 million) allocated to an Article 6 Readiness Facility aimed at strengthening the capacity of GGGI member and partner countries to participate effectively in Article 6 carbon markets.

"The remaining US$10 million (RM39.7 million) will establish the Singapore Article 6 Carbon Facility, which will finance the development of Article 6 carbon credit projects, with the credits generated to be used towards Singapore’s own climate targets," it said.

MTI Permanent Secretary (Energy & Trade) Augustin Lee said Singapore is committed to advancing high-integrity international carbon markets that accelerate climate action.

"Through the CTF, we hope to create high-quality carbon credits which we can buy to offset our carbon emissions,” he added.

-- BERNAMA