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The Star
2 days ago
- Business
- The Star
Singapore seals carbon credit deal with Thailand, its first South-East Asian partner
SINGAPORE: Thailand has become the first South-East Asian country to finalise a carbon trading agreement with Singapore, paving the way for the Republic to buy carbon credits generated there. The bilateral agreement allows the Singapore government or carbon tax-liable firms here to purchase eligible credits in Thailand to offset a fraction of their planet-warming emissions. The implementation agreement was signed on Aug 19 by Dr Tan See Leng, Singapore's Minister for Manpower and Minister-in-charge of Energy and Science and Technology, and Thailand's Minister of Natural Resources and Environment Chalermchai Sri-on, on the sidelines of the ninth Singapore Regional Business Forum. The annual event organised by the Singapore Business Federation brings together policymakers, top business leaders, senior government officials and other stakeholders to explore business opportunities in the region. This is the eighth implementation agreement that Singapore has so far. The seven other countries that have such pacts with Singapore are Papua New Guinea, Ghana, Bhutan, Peru, Chile, Rwanda and Paraguay. Under the Paris Agreement - an international treaty adopted by 195 parties to limit global warming - countries can buy carbon credits generated in other jurisdictions to meet domestic climate targets. The carbon markets will benefit carbon credit buyers, as buying credits from elsewhere can sometimes be cheaper than reducing emissions on their own. Countries hosting these projects also stand to gain, since these climate-friendly projects become an additional source of revenue. An implementation agreement is a legally binding document that governs the international transfer of carbon credits between two countries. A key element of these agreements is to prevent double counting, a situation where both the buyer and host country count the same emissions reductions or removals toward their own targets. A host country must agree to make a 'corresponding adjustment' to add the emissions sold back to its national inventory. One carbon credit represents one tonne of carbon dioxide that is either absorbed from the atmosphere, such as through a forest restoration project, or prevented from being released. This could also happen by replacing open-fire stoves with cleaner-burning ones. Credits used to offset Singapore's national emissions can be bought only from projects in countries that the Republic has implementation agreements with. These credits can be bought by the Singapore Government, or by large emitters here that have to pay a carbon tax. These firms can buy credits from projects in countries that Singapore has implementations agreements with, to offset up to 5 per cent of taxable emissions. In February, Singapore submitted to the UN its target to reduce greenhouse gas emissions to between 45 million and 50 million tonnes (Mt) by 2035, down from around 60Mt in 2030. In the longer-term, Singapore aims to reach net-zero emissions by 2050. Singapore's constraints as a land-scarce island-state means that it will likely have to buy carbon credits to offset its carbon footprint. The Republic relies on imported natural gas for almost all of its energy needs, with limited options for renewable energy. The Republic has estimated that it would use high quality carbon credits to offset roughly 2.5 million tonnes of emissions a year from 2021 to 2030. Dr Tan said he hopes the agreement will demonstrate how South-East 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. He said: 'Singapore and Thailand have a longstanding partnership in trade, investment, and sustainable development. 'This year marks the 60th anniversary of our diplomatic relations, and it is especially meaningful that climate action is becoming an increasingly important pillar of our collaboration, reflecting our shared commitment to addressing global challenges.' Chalermchai said such cooperation is 'a clear signal' that Asean can drive high quality, internationally aligned greenhouse gas mitigation. He added: '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. 'Thailand is committed to becoming a hub for such projects and is ready to share our approach as a model for the region.' The Ministry of Trade and Industry said in a statement that the deal will advance both countries' climate ambitions by directing financing towards projects in Thailand that can benefit local communities in various ways. This includes improved waste management, enhanced energy efficiency and more jobs. The Republic is still negotiating deals with the South-East Asian countries of Malaysia, the Philippines and Sri Lanka. In a bid to become a regional hub for carbon markets, Singapore hosts more than 120 carbon services and trading firms, the highest concentration of such service providers in South-east Asia, according to state agency Enterprise Singapore. - The Straits Times/ANN
Straits Times
2 days ago
- Business
- Straits Times
Singapore seals carbon credit deal with Thailand, its first South-east Asian partner
Sign up now: Get ST's newsletters delivered to your inbox A floral display in Gardens by the Bay commemorating 60 years of diplomatic relations between Singapore and Thailand. SINGAPORE - Thailand has become the first South-east Asian country to finalise a carbon trading agreement with Singapore, paving the way for the Republic to buy carbon credits generated there. The bilateral agreement allows the Singapore government or carbon tax-liable firms here to purchase eligible credits in Thailand to offset a fraction of their planet-warming emissions. The implementation agreement was signed on Aug 19 by Dr Tan See Leng, Singapore's Minister for Manpower and Minister-in-charge of Energy and Science and Technology, and Thailand's Minister of Natural Resources and Environment Chalermchai Sri-on, on the sidelines of the ninth Singapore Regional Business Forum. The annual event organised by the Singapore Business Federation brings together policymakers, top business leaders, senior government officials and other stakeholders to explore business opportunities in the region. This is the eighth implementation agreement that Singapore has so far. The seven other countries that have such pacts with Singapore are Papua New Guinea, Ghana, Bhutan, Peru, Chile, Rwanda and Paraguay. Under the Paris Agreement - an international treaty adopted by 195 parties to limit global warming - countries can buy carbon credits generated in other jurisdictions to meet domestic climate targets. The carbon markets will benefit carbon credit buyers, as buying credits from elsewhere can sometimes be cheaper than reducing emissions on their own. Top stories Swipe. Select. Stay informed. 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A key element of these agreements is to prevent double counting, a situation where both the buyer and host country count the same emissions reductions or removals toward their own targets. A host country must agree to make a 'corresponding adjustment' to add the emissions sold back to its national inventory. One carbon credit represents one tonne of carbon dioxide that is either absorbed from the atmosphere, such as through a forest restoration project, or prevented from being released. This could also happen by replacing open-fire stoves with cleaner-burning ones. Credits used to offset Singapore's national emissions can be bought only from projects in countries that the Republic has implementation agreements with. These credits can be bought by the Singapore Government, or by large emitters here that have to pay a carbon tax. These firms can buy credits from projects in countries that Singapore has implementations agreements with, to offset up to 5 per cent of taxable emissions. In February, Singapore submitted to the UN its target to reduce greenhouse gas emissions to between 45 million and 50 million tonnes (Mt) by 2035, down from around 60Mt in 2030. In the longer-term, Singapore aims to reach net-zero emissions by 2050. Singapore's constraints as a land-scarce island-state means that it will likely have to buy carbon credits to offset its carbon footprint. The Republic relies on imported natural gas for almost all of its energy needs, with limited options for renewable energy. The Republic has estimated that it would use high quality carbon credits to offset roughly 2.5 million tonnes of emissions a year from 2021 to 2030. Dr Tan said he hopes the agreement will demonstrate how South-east 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. He said: 'Singapore and Thailand have a longstanding partnership in trade, investment, and sustainable development. 'This year marks the 60th anniversary of our diplomatic relations, and it is especially meaningful that climate action is becoming an increasingly important pillar of our collaboration, reflecting our shared commitment to addressing global challenges.' Mr Chalermchai said such cooperation is 'a clear signal' that Asean can drive high quality, internationally aligned greenhouse gas mitigation. He added: '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. 'Thailand is committed to becoming a hub for such projects and is ready to share our approach as a model for the region.' The Ministry of Trade and Industry said in a statement that the deal will advance both countries' climate ambitions by directing financing towards projects in Thailand that can benefit local communities in various ways. This includes improved waste management, enhanced energy efficiency and more jobs. The Republic is still negotiating deals with the South-east Asian countries of Malaysia, the Philippines and Sri Lanka. In a bid to become a regional hub for carbon markets, Singapore hosts more than 120 carbon services and trading firms, the highest concentration of such service providers in South-east Asia, according to state agency Enterprise Singapore.
The Star
15-06-2025
- Business
- The Star
Singapore and Indonesia strengthen economic ties amid global uncertainty
Deputy Prime Minister Gan Kim Yong (right) and Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto at the 15th Singapore-Indonesia Six Bilateral Economic Working Groups Ministerial Meeting. - Photo: MITI SINGAPORE: Singapore and Indonesia have reaffirmed their commitment to strengthen economic ties at a high-level bilateral meeting held in Singapore on Sunday (June 15). The 15th Singapore-Indonesia Six Bilateral Economic Working Groups Ministerial Meeting or 6WG MM was co-chaired by Deputy Prime Minister Gan Kim Yong and Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto. The meeting is a key economic platform between Singapore and Indonesia to advance economic cooperation in six areas. These are namely the Batam, Bintan and Karimun (BBK) region and other special economic zones, investments, manpower, transport, agribusiness and tourism. This latest bilateral meeting comes after the two countries signed three deals on clean energy and sustainable development during a visit by Singapore's Minister-in-charge of Energy and Science and Technology Dr Tan See Leng to Jakarta on June 13. Indonesia President Prabowo Subianto is also set to make his first state visit to Singapore on June 16. These bilateral engagements between Singapore and Indonesia come at a time of uncertainty in global politics. Bilateral trade between Singapore and Indonesia has grown steadily over the last few years, with both countries being among each other's largest trading partners. In 2024, bilateral trade reached US$57.6 billion. Singapore has been Indonesia's top source of foreign direct investments (FDI) every year since 2014, with FDI flow into Indonesia exceeding US$20.1 billion in 2024. On June 15, Gan, who is also Minister for Trade and Industry, and Airlangga also witnessed the signing of two commercial agreements at the 6WGMM. One agreement is an affirmation letter between Singapore's Sembcorp Development and Indonesia's PT Batamraya Sukses Perkasa on their commitment to collaborate on low carbon industrial parks in the BBK region. The two companies are jointly developing the 100ha Tembesi Innovation District, which aims to attract sustainability-focused tenants, and will generate 20,000 jobs when it is fully developed. The other agreement is a memorandum of understanding between the Singapore Semiconductor Industry Association and the Indonesia Chamber of Commerce and Industry. The two associations will join forces to expand market access between semiconductor and electronics companies in Singapore and Indonesia. Singapore's Ministry of Trade and Industry said in a press release that both leaders underscored the importance of improving both country's business and regulatory environment to attract investments, and helping people and businesses collaborate and seize emerging opportunities in both countries. To that end, the leaders welcomed growing investor interest in the BBK region, and recognised the good progress in human capital development. In the agribusiness sector, the ministers discussed initiatives to advance agri-tech collaborations and create new trading opportunities for Indonesian importers and Singaporean exporters, which will benefit both countries' food industries. The leaders also welcomed improvements in air connectivity and reaffirmed the commitment to deepen business connectivity between Singapore and Indonesia,which will boost trade, investments and people to people flows. - The Straits Times/ANN
Straits Times
15-06-2025
- Business
- Straits Times
Singapore and Indonesia strengthen economic ties amid global uncertainty
Deputy Prime Minister Gan Kim Yong (right) and Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto at the 15th Singapore-Indonesia Six Bilateral Economic Working Groups Ministerial Meeting. PHOTO: MTI SINGAPORE - Singapore and Indonesia have reaffirmed their commitment to strengthen economic ties at a high-level bilateral meeting held in Singapore on June 15. The 15th Singapore-Indonesia Six Bilateral Economic Working Groups Ministerial Meeting or 6WG MM was co-chaired by Deputy Prime Minister Gan Kim Yong and Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto. The meeting is a key economic platform between Singapore and Indonesia to advance economic cooperation in six areas. These are namely the Batam, Bintan and Karimun (BBK) region and other special economic zones, investments, manpower, transport, agribusiness and tourism. This latest bilateral meeting comes after the two countries signed three deals on clean energy and sustainable development during a visit by Singapore's Minister-in-charge of Energy and Science and Technology Dr Tan See Leng to Jakarta on June 13. Indonesia President Prabowo Subianto is also set to make his first state visit to Singapore on June 16. These bilateral engagements between Singapore and Indonesia come at a time of uncertainty in global politics. Bilateral trade between Singapore and Indonesia has grown steadily over the last few years, with both countries being among each other's largest trading partners. In 2024, bilateral trade reached US$57.6 billion. Singapore has been Indonesia's top source of foreign direct investments (FDI) every year since 2014, with FDI flow into Indonesia exceeding US$20.1 billion in 2024. On June 15, Mr Gan, who is also Minister for Trade and Industry, and Mr Airlangga also witnessed the signing of two commercial agreements at the 6WGMM. One agreement is an affirmation letter between Singapore's Sembcorp Development and Indonesia's PT Batamraya Sukses Perkasa on their commitment to collaborate on low carbon industrial parks in the BBK region. The two companies are jointly developing the 100ha Tembesi Innovation District, which aims to attract sustainability-focused tenants, and will generate 20,000 jobs when it is fully developed. The other agreement is a memorandum of understanding between the Singapore Semiconductor Industry Association and the Indonesia Chamber of Commerce and Industry. The two associations will join forces to expand market access between semiconductor and electronics companies in Singapore and Indonesia. Singapore's Ministry of Trade and Industry said in a press release that both leaders underscored the importance of improving both country's business and regulatory environment to attract investments, and helping people and businesses collaborate and seize emerging opportunities in both countries. To that end, the leaders welcomed growing investor interest in the BBK region, and recognised the good progress in human capital development. In the agribusiness sector, the ministers discussed initiatives to advance agri-tech collaborations and create new trading opportunities for Indonesian importers and Singaporean exporters, which will benefit both countries' food industries. The leaders also welcomed improvements in air connectivity and reaffirmed the commitment to deepen business connectivity between Singapore and Indonesia,which will boost trade, investments and people to people flows. Join ST's WhatsApp Channel and get the latest news and must-reads.
The Star
13-06-2025
- Business
- The Star
Singapore and Indonesia deepen green energy partnership with three new deals
The MoUs were inked on June 13 during a visit to Jakarta by Singapore's Minister-in-charge of Energy and Science and Technology, Dr Tan See Leng, and Indonesia's Minister for Energy and Mineral Resources, Dr Bahlil Lahadalia. - TAN SEE LENG/FACEBOOK JAKARTA: Singapore and Indonesia have inked three key agreements to strengthen cooperation in clean energy and sustainable development, in a 'win-win partnership' that marks a significant milestone in their green partnership. The Memoranda of Understanding (MoUs) were inked on June 13 during a visit to Jakarta by Singapore's Minister-in-charge of Energy and Science and Technology, Dr Tan See Leng, and Indonesia's Minister for Energy and Mineral Resources, Dr Bahlil Lahadalia. Describing the agreements as a step forward in the two countries' shared vision for a low-carbon and resilient future, Dr Tan said the deals were mutually beneficial. 'Today's signing ceremony is not just symbolic. It is a true reflection of both our shared resolve to translate our ideas into actions and to do so in close partnership and mutual trust,' he said in a speech. The agreements, Dr Tan added, 'offer win-win opportunities' amid global climate challenges and economic uncertainty. They aim to grow and decarbonise both countries' economies in a sustainable way, spur innovation and unlock new growth areas. 'These are a concrete step to anchor long-term cooperation,' he said. One of the cornerstone agreements targets cross-border electricity trade (CBET). This builds on earlier energy cooperation frameworks and aims to develop the necessary policies, regulatory mechanisms and commercial terms within a year. Dr Tan noted that the projects under this initiative could attract significant capital investment, boost foreign exchange earnings, and increase annual tax revenue. He added that electricity exports would also accelerate the growth of Indonesia's renewable energy manufacturing sector and enhance its broader supply chain, creating jobs and drawing long-term investment. 'Together, Singapore and Indonesia, we are also laying the foundation for a more connected Asean Power Grid and a more secure and sustainable energy future,' he said, referring to the initiative to connect energy systems across South-east Asia. Another agreement focuses on collaboration in carbon capture and storage (CCS). A joint working group will be formed to explore a legally binding bilateral agreement to facilitate project implementation. Calling CCS 'necessary for the decarbonisation of hard-to-abate economic activities' in both countries, Dr Tan said such a move could create a major new business opportunity for Indonesia while creating jobs and attracting investments. 'It is not a new technology, but if Indonesia and Singapore can succeed in making this cross-border CCS a reality, we will be among the first countries in Asia to do so,' he said. - The Straits Times/ANN
