Singapore signs implementation agreement on carbon credits collaboration with Paraguay

25 June 2025

On 23 May 2025, the Ministry of Trade and Industry (“MTI”) announced that Singapore and Paraguay signed an implementation agreement on carbon credits collaboration (“Implementation Agreement”) under Article 6 of the Paris Agreement (“Article 6”). This is Singapore’s seventh Implementation Agreement on carbon credits collaboration following agreements with Papua New Guinea, Ghana, Bhutan, Peru, Chile, and Rwanda. 

The Implementation Agreement establishes a framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6. Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook. Information on the process for authorisation of these carbon credits projects and eligible carbon crediting methodologies under the Implementation Agreement will be published in due course. 

The collaboration will advance both countries’ climate ambitions by directing financing towards unlocking additional mitigation potential in Paraguay. The carbon mitigation projects authorised under the Implementation Agreement will promote sustainable development and deliver tangible benefits to local communities, such as creation of jobs, and reduction of environmental pollution. 

Reference materials 

The press release is available on the MTI website www.mti.gov.sg.