Singapore has opened the second stage of a tender to buy at least 12 million Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement. The tender opened on September 7, 2026, by the Ministry of Trade and Industry (MTI). Only bidders that passed the first stage can now submit detailed project proposals. A briefing for pre-qualified bidders is scheduled for September 23.

The tender marks a major step in Singapore’s plan to secure more international carbon credits. It also shows that the country is moving from signing Article 6 agreements to buying actual future credit supply.

However, the 12 million tonnes are a procurement target, not credits already issued. Projects must still be approved, monitored, and independently verified.

Singapore Is Scaling Up Carbon Credit Purchases 

The new tender is much larger than Singapore’s first major government carbon purchase. In September 2025, the country agreed to buy 2.175 million tonnes of nature-based carbon credits from four projects in Ghana, Peru and Paraguay. The deals were worth about S$76 million, with deliveries planned from 2026 to 2030.

The new tender seeks more than five times that volume.

It also covers a wider range of projects. Singapore says the procurement can include nature-based and technology-based projects. That could include renewable energy, methane reduction, industrial projects and carbon removal, depending on the final eligibility rules.

The tender could therefore become an important source of demand for developers seeking long-term buyers for future Article 6 credits.

Article 6 Creates a Different Type of Carbon Market

Article 6.2 allows countries to transfer emissions reductions between countries. These units are known as ITMOs: Internationally Transferred Mitigation Outcomes.

A key safeguard is the corresponding adjustment. It stops both countries from counting the same emissions reduction toward their climate targets.

For example, if a project in a host country creates an authorised mitigation outcome and transfers it to Singapore, the host country must adjust its emissions accounting. It cannot also count the same reduction toward its own climate target.

This is an important difference between Article 6 transactions and many voluntary carbon market deals. Singapore’s bilateral Implementation Agreements create the framework for project approval, reporting, authorization, and corresponding adjustments.

Why Singapore Needs More International Carbon Credits

Singapore has limited land and fewer options for large-scale domestic carbon removals. International credits therefore form an important part of its climate strategy.

The country aims to reduce emissions to 45–50 million tonnes of CO2 equivalent by 2035 and reach net zero by 2050.

Singapore has estimated that it could need around 2.51 million tonnes of ITMOs each year during its 2021–2030 NDC period. The government plans to secure eligible credits through both direct procurement and its carbon-tax system.

That makes the new 12-million-ton tender important. The volume is large enough to build a bigger supply pipeline, rather than relying mainly on smaller individual deals.

• SEE MORE: Singapore and the Philippines Launch Historic Article 6 Carbon Credit Deal, Boosting Climate Finance in Asia

Carbon Tax Creates Another Source of Demand

Singapore’s carbon tax adds another reason to expand the supply of eligible credits. The tax applies to industrial facilities that emit at least 25,000 tonnes of CO2e a year. It covers about 70% of Singapore’s national emissions, according to the government.

The carbon tax rose from S$25 per tonne in 2025 to S$45 per tonne in 2026 and 2027. Singapore plans to raise it to S$50–S$80 per tonne by 2030.

Since 2024, covered companies can use eligible international carbon credits for up to 5% of their taxable emissions. This creates a direct link between Singapore’s domestic carbon price and its international carbon market.

As the tax rises, demand for eligible credits could also increase, provided those credits meet Singapore’s rules.

Quality Matters as Much as Carbon Volume

Singapore is not simply looking for large volumes of cheap credits. Its eligibility rules require projects to meet key principles such as additionality, accurate measurement, permanence, transparency, and no double counting.

The country has also introduced additional safeguards for some project types. For example, certain renewable energy projects face extra requirements because Singapore wants to avoid using credits for projects that may already be financially viable without carbon revenue.

Singapore also requires cancelling 2% of authorized credits at issuance to support an overall reduction in global emissions. Another 5% of proceeds must support adaptation in host countries or the UNFCCC Adaptation Fund. These measures reduce the number of credits available for use, but they are intended to improve environmental integrity.

The Biggest Challenge: Turning Deals Into Real Credits

The large tender also reflects a simple problem: eligible Article 6 credits take time to develop. Singapore says carbon projects can take up to four years to generate credits. That makes early procurement important for companies and governments that need supply later.

Signing an Article 6 agreement also does not automatically create credits. Projects must be identified, approved, and monitored. Host countries must authorise the relevant mitigation outcomes, while developers must meet Singapore’s eligibility and verification requirements.

This creates a gap between policy agreements and actual carbon supply. The new tender is designed to help close that gap by bringing more projects into the pipeline now.

Singapore Is Building a Regional Carbon Network

The tender is part of a wider effort by Singapore to build a network of Article 6 partners across Asia and other regions.

Singapore has signed Implementation Agreements with countries including Ghana, Bhutan, Chile, Mongolia, Papua New Guinea,
Peru, Rwanda, Paraguay, Thailand, Vietnam and the Philippines. Laos also signed an Implementation Agreement with Singapore in September 2026.

This network gives Singapore a wider pool of potential projects. It also gives developing countries access to a buyer that is seeking credits that meet government standards.

That could encourage more investment in projects involving forests, clean energy, methane reduction, waste and other emissions reduction activities.

Carbon Finance Could Benefit Host Countries

The impact of the tender could extend beyond Singapore. Carbon projects often require large upfront investments. Revenue from future credits can help improve the economics of projects that might otherwise struggle to secure financing.

Singapore has also committed US$15 million to the Global Green Growth Institute’s Carbon Transaction Facility and established a Singapore Article 6 Carbon Facility to support project development and capacity building.

The combination of project financing, technical support and future credit demand could help countries develop stronger carbon market infrastructure. The benefits may also include renewable energy, better land management, rural income and other development gains, depending on the projects selected.

The 12M-Ton Tender Puts Article 6 to the Test

The second-stage tender is an important test for the Article 6 market. Singapore has spent years building bilateral agreements and setting strict rules for carbon-credit quality. It is now moving toward a much larger procurement programme.

For developers, the tender could create a major new source of demand. For host countries, it could bring more climate finance. For Singapore, it could help secure the international credits needed for its climate and carbon-tax policies.

The wider message is clear: Article 6 is moving from international climate rules toward real carbon market transactions at scale. As more governments begin to buy credits directly, the quality of those credits will matter as much as their volume.

For the leading carbon buyer in Asia, the new tender is a major step toward building a reliable international carbon supply. For the wider market, it could help turn Article 6 from a policy framework into a functioning source of climate finance.

READ MORE: Singapore and Indonesia Seal Landmark Carbon Credit Deal to Boost Southeast Asia’s Green Economy

The post Singapore Targets 12 Million Carbon Credits in Major Article 6 Tender appeared first on Carbon Credits.

Australia has taken a major step toward using carbon credits to protect native forests. However, the decision has also exposed a deep split within the environmental movement.

The Senate has rejected an attempt to block the Improved Native Forest Management (INFM) method. This allows the new forest carbon credit system to remain in place.

The Greens were divided. Most of their senators supported the government’s position after securing changes to the scheme. Three Greens senators opposed it. The vote highlights a bigger question for Australia’s carbon market:

Can carbon credits help protect forests without allowing companies to rely on offsets instead of cutting their own emissions?

Australia’s Senate Clears a New Path for Forest Carbon

The Coalition tried to disallow the INFM method, arguing that it could affect Australia’s native forestry industry. The motion was defeated 34 votes to 27, allowing the method to continue.

• Seven Greens senators supported the government, while Senators Nick McKim, Vanessa Bleyer and Jordon Steele-John voted against it.

The federal government says the method gives states another financial option for protecting public native forests. Under the system, states can generate Australian Carbon Credit Units (ACCUs) by stopping planned timber harvesting in eligible native forests.

The forests can then continue growing and storing carbon. At the same time, emissions linked to harvesting can be avoided.

The government formally approved the INFM method in June 2026. It is scheduled to expire on September 30, 2036, unless extended under Australian law.

How Forest Credits Work

The basic idea is simple. A state identifies a forest that would otherwise be harvested. If logging is stopped through an eligible project, the additional carbon stored in the forest can be counted as emissions reduction.

Projects must use Australia’s Full Carbon Accounting Model (FullCAM) to calculate the carbon benefit. They also face monitoring, reporting and compliance requirements.

The resulting ACCUs can be sold to companies seeking to offset emissions or meet obligations under Australia’s climate policies. For governments, this creates a potential new source of revenue from forest protection.

For environmental groups, however, the question is whether the carbon benefit is genuinely additional. That issue sits at the heart of the debate.

Why the Greens Are Divided

The Greens have long supported stronger forest protection and deeper emissions cuts. But the party remains divided over the role of carbon markets.

Most Greens senators backed the INFM method after negotiating changes with the government. Greens leader Larissa Waters said the party secured stronger safeguards, including restrictions on how credits can be used by coal and gas companies.

Energy Minister Chris Bowen said:

“If you believe in ending native forest logging or moving away from it and reducing it, then you vote for this method.”

Three Greens senators, however, rejected the deal.

McKim, Bleyer and Steele-John argued that carbon credits could allow major polluters to keep emitting while claiming reductions elsewhere. They also said native forests should be protected for their environmental and biodiversity value, rather than mainly because they can generate carbon credits.

Senator McKim noted:

“Labor is holding koalas hostage… and threatening their extinction unless they can profit from their habitat.”

The disagreement reflects a wider debate over whether forest conservation and carbon markets should be linked.

Supporters argue that carbon revenue can make standing forests more valuable than logging them. Critics say forests should be protected through direct government action, without creating credits that companies can use to offset emissions.

Great Koala National Park Could Become the Big Test

The proposed Great Koala National Park in New South Wales is likely to become one of the most important tests of the new system. The proposed park covers about 476,000 hectares, including more than 176,000 hectares of state forest.

The NSW government says the area could protect more than 12,000 koalas, 36,000 greater gliders and habitat for more than 100 other threatened species.

NSW is developing a carbon project under the new INFM method. The plan is to stop timber harvesting and allow the forests to continue growing and storing carbon.

• Earlier government estimates suggested the project could generate about 6.4 million tonnes of carbon abatement and sequestration over 25 years, including around 3.7 million ACCUs over 15 years.

Those figures were based on an earlier version of the method. They should not be treated as the final credit volume.

The project will now provide an important real-world test of whether carbon finance can support large-scale forest protection.

Additionality Will Make or Break Forest Credits

The Senate vote does not end concerns about the quality of forest carbon credits. One major issue is additionality.

For a carbon credit to represent a real climate benefit, the protection should not have happened without the project. If a forest was already going to be protected, critics argue that issuing credits could create little additional climate benefit.

Another concern is leakage. If logging stops in one forest but moves to another area, some of the claimed emissions benefit could be lost.

The government considered both issues while developing the INFM method. The final rules include requirements to monitor harvesting and account for potential leakage.

The government received 371 submissions during consultation on the draft method. The results will now depend on how the rules work in actual projects.

A New Phase for Australia’s Carbon Market

The forest credit debate comes as Australia’s ACCU market plays a larger role in national climate policy. The credits are increasingly linked to the Safeguard Mechanism, which requires Australia’s largest industrial facilities to manage their emissions.

The policy continues to show positive momentum, with a noticeable reduction in industrial footprints during 2024–25. Total gross covered emissions decreased by 2.3% year-over-year to 132.8 MtCO₂e. Meanwhile, net emissions dropped at a faster rate of 5.5%, falling to 120.3 MtCO₂e, highlighting increased compliance and market activity.

The Climate Change Authority’s latest review said the ACCU system remains fundamentally sound but called for improvements in transparency and information for buyers. It also recommended further work on carbon storage permanence and the treatment of credits from different project types.

The INFM method adds another potential source of ACCUs. Instead of planting new forests, projects can generate credits by keeping existing native forests standing and allowing them to grow.

That could expand Australia’s land-sector carbon market. But forest projects also face risks from fires, drought, pests and other disturbances. Ensuring that credited carbon remains stored will therefore be important for market credibility.

The Real Test: Can Australia Forest Credits Deliver?

Australia’s Senate decision does not settle the debate over forest carbon credits. It does, however, create a path for governments to put a financial value on keeping native forests standing.

The Great Koala National Park could become an early test. If its carbon project delivers real additional emissions reductions while protecting important biodiversity, it could show how carbon markets can support large-scale conservation.

But if credits are issued for protection that would have happened anyway, or if they allow major emitters to delay real emissions cuts, the method could face renewed criticism.

The next stage will, therefore, matter more than the Senate vote itself.

Australia now has to show that forest carbon can deliver both real climate benefits and real forest protection. How that works in New South Wales could influence the future of forest carbon projects across Australia.

• READ MORE: Australia Shuts Down Carbon Offset Program Climate Active: What Comes Next for the Market and Corporate Net Zero?

The post Australia’s Forest Carbon Fight: Greens Split as Senate Backs Forest Credits appeared first on Carbon Credits.

Global nuclear power is entering a new period of expansion as governments look for reliable, low-carbon electricity to meet rising energy demand.

The World Nuclear Association’s (WNA) World Nuclear Outlook Report 2026 finds that national nuclear targets are collectively strong enough to support more than a tripling of global nuclear capacity by 2050. If those ambitions are delivered, global capacity could reach 1,457 GWe by the middle of the century.

The growth would build on nuclear power’s existing contribution to emissions reductions. Since 1970, nuclear generation has avoided an estimated 43.6 billion tonnes of CO₂ emissions compared with producing the same electricity from gas-fired power plants. Compared with coal, the avoided emissions rise to 97.2 billion tonnes.

However, the report makes clear that reaching the 2050 target will depend less on setting new ambitions and more on delivering reactors at a much faster pace.

Nuclear Generation Reaches a Record High

Nuclear power already supplies a significant share of global electricity.

• Worldwide nuclear generation reached a record 2,702 TWh in 2025, up from 2,667 TWh a year earlier. That was enough to provide about 9% of global electricity.

The increase was driven largely by Asia. Nuclear generation across the region has risen by approximately 2.5 times since 2012, with China accounting for much of the expansion alongside growing output from countries including India, Pakistan and the United Arab Emirates.

At the same time, nuclear’s share of global electricity has fallen from around 17% in the mid-1990s. That does not mean nuclear generation has declined. Instead, global electricity production has expanded faster than nuclear output.

• The existing fleet is also performing strongly. The global average reactor capacity factor rose to 83.7% in 2025, compared with 82.9% in 2024.
• The report found no general decline in performance among reactors operating for more than 40 years.

That strengthens the case for keeping existing plants online while new capacity is built.

Nuclear’s Climate Contribution Is Already Significant

Nuclear power’s role in reducing emissions extends well beyond its current electricity output.

Nuclear vs. Gas-Fired Emissions: At today’s generation levels, nuclear power avoids roughly 1.25 billion tonnes of CO₂ emissions every year compared with gas-fired generation. WNA says that is greater than the combined annual emissions from aviation and shipping.

Nuclear vs. Coal Emissions: The comparison with coal is even more significant because coal has a higher carbon intensity.

The report estimates that nuclear generation has avoided 97.2 billion tonnes of CO₂ compared with coal-fired electricity since 1970. That cumulative figure is larger than the 38.1 billion tonnes of CO₂ emitted by the entire global energy sector in 2025.

A Low-Carbon Power Source: As electricity demand grows, expanding nuclear generation could provide another source of low-carbon power without relying on fossil fuel combustion.

Here’s the summary of nuclear’s climate impact in the infographic below:

2050: Global Nuclear Capacity Could Reach 1,457 GWe

The report’s central outlook is based on a combination of existing reactors, projects already moving through development, and additional capacity linked to national government targets.

Under its projection, global nuclear capacity reaches 1,457 GWe in 2050. The calculation assumes existing reactors operate for up to 80 years where appropriate, current projects enter service, and additional reactors needed to meet national targets are constructed.

The project pipeline is gradually becoming more concrete.

Capacity under construction increased from 76 GWe to 82 GWe, while planned capacity rose from 107 GWe to 114 GWe. Meanwhile, proposed capacity declined from 294 GWe to 289 GWe and potential capacity dropped from 24 GWe to 13 GWe.

That shift is important because it suggests some projects are moving toward more advanced stages of development.

Still, a substantial gap remains. The report estimates that another 559 GWe would be required beyond identified projects to meet governments’ stated nuclear targets.

China, India and New Nuclear Markets

Most of the projected growth will come from countries that already operate nuclear reactors. Existing nuclear countries are expected to account for 1,303 GWe of the projected 2050 capacity. New nuclear entrants could contribute another 154 GWe.

Five countries — China, France, India, Russia and the US — are projected to account for a combined 986 GWe by 2050.

China is particularly important to the near-term outlook. Nine of the 11 reactors that began construction in 2025 were in China, with the remaining two in Russia.

India also has ambitious plans. The country currently has around 8 GWe of nuclear capacity, providing approximately 3% of its electricity. Its government is targeting 100 GWe by 2047, which would require a major increase in construction and industrial capacity.

Meanwhile, new entrants are beginning to expand the geographic reach of nuclear power. The report expects countries without operating reactors in 2026 to collectively reach 154 GWe by 2050.

• ALSO READ: Meta, Google, and Amazon Join Global Pledge to Triple Nuclear Energy by 2050 

The Nuclear Buildout Needs to Accelerate

This is where the outlook faces its biggest challenge.

The industry started construction on 11 reactors in 2025, matching the previous year’s total. However, the World Nuclear Association estimates that construction starts would eventually need to reach around six times current levels by the mid-2030s to achieve the tripling objective.

Construction times also vary considerably.

China’s Zhangzhou 2 reactor reached the grid after 62 months, while India’s Rajasthan 7 took 163 months. The report links China’s shorter construction period to its active programme of standardized reactors built in series.

That difference illustrates one of the central lessons of the report: building reactors repeatedly can preserve expertise, strengthen supply chains and allow developers to apply experience from one project to the next.

Countries that build reactors only occasionally face a different challenge. Long gaps can result in the loss of skilled workers and institutional knowledge, while each new project can effectively become a first-of-a-kind undertaking.

Keeping Existing Reactors Online Matters

New construction is only one part of the nuclear expansion strategy.

Currently, 401 GWe of the 423 GWe of nuclear capacity are operating. It could still be in service in 2050 under its operating-life assumptions. Of that amount, 230 GWe would come from reactors operating between 60 and 80 years.

That makes lifetime extensions particularly important.

Furthermore, 46 reactors had already been operating for more than 50 years as of August 2026. Their continued performance demonstrates that reactor age alone does not necessarily prevent reliable operation.

For countries seeking to increase low-carbon electricity quickly, extending the life of existing reactors can therefore complement new construction.

Financing, Fuel and Supply Chains Are Critical

Despite stronger government support, nuclear projects face high upfront costs and long development timelines.

The report argues that financing must move beyond one-off project structures toward repeatable programmes. Governments can reduce investment risk through long-term policy commitments, revenue frameworks, public-private partnerships and appropriate risk-sharing mechanisms. Multilateral development banks and export credit agencies could also help attract private capital.

At the same time, the nuclear supply chain will need to expand. Tripling capacity would require additional manufacturing, construction, specialist engineering, transportation and nuclear-qualified suppliers.

Uranium supply is another potential bottleneck. The report warns that nuclear expansion will require significantly more uranium and says exploration and mine development must accelerate because new projects can take years to develop. Fuel-cycle capacity for conversion, enrichment and fabrication will also need to grow ahead of demand.

SMRs Could Broaden Nuclear’s Role

Small modular reactors could eventually complement large conventional reactors.

The report says SMRs may simplify project delivery, reduce capital requirements per unit and support more flexible financing models. Factory manufacturing and modular construction could also encourage standardization and potentially shorten construction schedules.

However, most SMR designs still require further licensing, demonstration, and first-of-a-kind deployment. Therefore, large reactors are expected to provide most of the capacity added through 2050, even if SMRs become increasingly important.

Nuclear’s role could also extend beyond electricity. Advanced reactors could provide industrial heat, district heating, desalination and energy for synthetic fuels and other hard-to-abate applications.

The International Energy Agency (IEA) also expects strong long-term growth. In its Announced Pledges Scenario, the IEA predicts over 1,000 SMRs to be used worldwide by 2050. This would add up to about 120 gigawatts (GW) of capacity. It also estimates SMR investment could rise from about $5 billion today to more than $25 billion by 2030.

• RELATED: SMRs Set for Breakout: Global Nuclear Capacity Forecast to Jump Nearly Sixfold by 2030

Nuclear’s 2050 Goal Depends on Delivery

The World Nuclear Outlook 2026 presents a clear contrast between ambition and execution.

Governments have established enough targets to support a tripling of nuclear capacity. The pipeline is also becoming more concrete, with more capacity moving into construction and planned categories.

But those targets will only translate into operating reactors if countries can solve the practical challenges of financing, licensing, construction, fuel supply, manufacturing and workforce development.

For the energy transition, the potential payoff is significant. Nuclear already provides a large source of low-carbon electricity and has helped avoid tens of billions of tonnes of CO₂ emissions over the past five decades.

The next stage will depend on whether the industry can turn that established climate contribution into a much larger fleet.

The nuclear industry has set the target. Now it needs to build the capacity to deliver it.

• READ MORE: DOE’s Nuclear Fuel and Fusion Partnership Signals a New Era for U.S. Power Markets

The post Nuclear Power Could Triple by 2050 as It Helps Avoid 43.6 Billion Tonnes of CO₂ appeared first on Carbon Credits.

Singapore and Laos have signed a new agreement to collaborate on carbon credits under Article 6 of the Paris Agreement, creating a legal framework for the development and international transfer of high-integrity carbon credits.

As per reports, the Implementation Agreement was signed virtually on September 4 by Singapore’s Minister for Sustainability and the Environment and Minister in charge of Trade Relations, Grace Fu, and Lao PDR’s Minister of Agriculture and Environment, Dr. Linkham Douangsavanh.

The deal marks Singapore’s 12th bilateral Implementation Agreement on carbon credits and its fourth with an ASEAN member state.

The agreement could help channel new carbon finance into emissions-reduction projects in Laos while giving Singapore access to additional high-quality carbon credits.

Grace Fu further noted,

“Singapore and Lao PDR share a strong and longstanding partnership. As fellow ASEAN Member States, we are committed
to working together on regional and bilateral initiatives. The signing of the Implementation Agreement is an important milestone in our bilateral partnership and unlocks new opportunities in carbon markets for businesses and local communities. By working together, ASEAN can lead the way in building a low-carbon future that delivers tangible benefits across the region.”

Singapore and Laos Build Article 6 Carbon Market Framework

Carbon markets are becoming a central tool in global climate policy despite ongoing concerns over credit quality and transparency. As per MSCI, the global carbon-credit market is projected to grow modestly by 2030, reaching USD 5–20 billion, but could expand sharply by 2050 to USD 60–270 billion as demand strengthens and high-quality supply becomes more constrained.

The image below explains the growth in detail:

This agreement establishes a legally binding framework for carbon mitigation projects that comply with the Article 6 rulebook.

Under the framework, project developers in Laos can develop eligible emissions-reduction projects and seek authorization to transfer their carbon credits internationally.

The credits must undergo corresponding adjustments before they can be transferred for eligible international uses. This mechanism is designed to prevent the same emissions reduction from being counted toward both countries’ climate targets.

Singapore and Laos will set out the procedures for project authorization and corresponding adjustments. Singapore will publish details on eligible carbon-crediting methodologies and the authorization process through its Article 6 platform.

The framework therefore provides project developers with a clearer path to participate in the growing international carbon market.

• READ MORE: Singapore and World Bank Launch New Carbon Markets Programme to Scale High-Integrity Climate Finance

Carbon Finance to Support Laos’ Climate Goals

Beyond creating a carbon trading framework, the agreement is designed to direct climate finance toward emissions-reduction opportunities in Lao PDR.

• Singapore has committed to channel 5% of the proceeds from authorized carbon credits under the agreement toward climate adaptation measures in Laos.
• The agreement also includes a separate contribution toward global emissions reduction. Singapore will cancel 2% of the correspondingly adjusted carbon credits at first issuance.

These cancelled credits cannot be sold, traded, or counted toward the emissions targets of any country. Together, these provisions are intended to ensure that the carbon market generates benefits beyond the sale and transfer of credits.

Projects authorized under the agreement are also expected to support sustainable development in Laos, including job creation and reductions in environmental pollution.

Singapore Expands Its International Carbon Market Strategy

The agreement fits into Singapore’s broader strategy of using international carbon markets alongside domestic climate policies. Notably, the country introduced Southeast Asia’s first national carbon tax in 2019. The tax applies to large industrial facilities emitting at least 25,000 tonnes of greenhouse gases annually.

The country is also raising its carbon price. Singapore’s carbon tax is set to increase from S$25 per tonne currently to S$50-S$80 per tonne by 2030.

To help companies manage some of the cost, Singapore allows covered facilities to use eligible international carbon credits to offset up to 5% of their taxable emissions under its International Carbon Credits framework.

As a result, access to high-quality international credits is becoming increasingly important for companies operating under Singapore’s carbon pricing system.

Singapore Expands Article 6 Partnerships

The partnership also strengthens Singapore’s position as a regional hub for carbon trading and climate finance. The city-state already hosts major carbon market and climate finance businesses, including Climate Impact X.

More broadly, the agreement shows how Article 6 is moving from an international rulebook toward practical bilateral carbon market arrangements.

• Singapore has now signed similar Implementation Agreements with Bhutan, Chile, Ghana, Mongolia, Paraguay, Papua New Guinea, Peru, Rwanda, Thailand, the Philippines, and Vietnam.

Why the Laos Deal Matters for the Carbon Market

The agreement gives Laos a new pathway to attract international climate finance for emissions-reduction and sustainable development projects. At the same time, it expands Singapore’s pipeline of high-integrity carbon credits and strengthens its role as a regional hub for carbon trading and climate finance.

More importantly, the deal shows how Article 6 is moving from global rules into practical bilateral carbon market partnerships. With 12 implementation agreements now signed, including four with ASEAN member states, Singapore is building a network that could support greater cross-border investment in climate action while helping countries meet their emissions goals.

• READ MORE: Singapore and the Philippines Launch Historic Article 6 Carbon Credit Deal, Boosting Climate Finance in Asia

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