Singapore and Bhutan invite applications for carbon credit projects under Implementation Agreement

18 December 2025

On 20 November 2025, the Ministry of Trade and Industry (“MTI”) announced that Singapore and Bhutan have launched an application call for carbon credit projects under their Implementation Agreement on carbon credits cooperation (“Implementation Agreement”). This is Singapore’s third call for project applications after similar agreements with Ghana and Peru.

Authorised projects will unlock additional carbon mitigation in Bhutan and advance both countries’ climate ambitions through targeted financing. These projects will promote sustainable development and benefit local communities through job creation, clean water access, improved energy security, and reduced environmental pollution. Authorised projects can generate carbon credits aligned with Article 6 of the Paris Agreement. Under Singapore’s International Carbon Credit (“ICC”) framework, these credits will be eligible for use by Singapore-based carbon tax-liable companies to offset up to 5% of their taxable emissions.

Applications for carbon credit projects in Bhutan to be authorised have been open since 1 December 2025. Submitted applications will be reviewed by the Singapore and Bhutan governments.

Application and authorisation process

The application and authorisation process comprises three stages, each corresponding to a different stage of implementation for the carbon credit project. The first two stages require applicants to submit details on the design and implementation plan for the carbon credit project in the lead-up to project authorisation. The final stage is for corresponding adjustments to be applied to the carbon credits generated from the authorised project, in accordance with Article 6, Paragraph 2 of the Paris Agreement. Detailed steps on the application process are set out on Singapore’s Carbon Markets Cooperation Application Process webpage for Bhutan.

Singapore and Bhutan will assess applications against each country’s respective requirements. For Singapore, these projects must meet Singapore’s ICC eligibility criteria. The eligibility criteria, and the list of eligible carbon crediting programmes and methodologies under the Implementation Agreement, are set out in Annex B to the press release and on Singapore’s Carbon Markets Cooperation Eligible Carbon Crediting Programmes and Methodologies webpage for Bhutan.

Reference materials

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