Singapore and Indonesia sign environmental and carbon market agreements at Leaders’ Retreat

30 July 2026

Singapore Prime Minister and Minister for Finance Lawrence Wong met Indonesian President Prabowo Subianto at the Singapore-Indonesia Leaders’ Retreat in Jakarta on 6 July 2026. Both leaders reaffirmed the two countries’ commitment to strengthening ties amid complex geopolitical headwinds and witnessed the presentation and exchange of several new Memoranda of Understanding (“MOUs”), including on cooperation in the environmental sector and on carbon trading.

Ahead of the leaders’ meeting, on 29 June 2026, Indonesia’s Minister of Environment/Head of the Environmental Control Agency Dr Mohammad Jumhur Hidayat, Singapore’s Minister for Sustainability and the Environment Grace Fu, and Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong signed an agreement to expand environmental cooperation, establishing a broader framework for cooperation on environmental protection. On 6 July 2026, another agreement was concluded creating a foundation for bilateral collaboration on carbon credits under Article 6 of the Paris Agreement to strengthen fair and high-integrity carbon market governance.

MOU on Environmental Protection

The MOU on Environmental Protection serves as an umbrella framework for future cooperation and for addressing shared environmental challenges. Areas identified include the circular economy and waste management; environmental management, including water and air quality; climate change; transboundary pollution; and a future-ready workforce to support the transition to a low-carbon economy. The two countries will also strengthen institutional capacity through civil servant training, joint research, exchanges of technical experts, and pilot projects to improve environmental resilience across South-east Asia.

MOU on Carbon Credits Collaboration

With the conclusion of the MOU on Carbon Credits Collaboration, the countries aim to strengthen climate change mitigation while ensuring that carbon markets deliver environmental integrity, climate justice, and tangible benefits for local communities. Indonesia and Singapore will negotiate an implementing agreement establishing operational rules on authorisation, verification, transfers of Internationally Transferred Mitigation Outcomes, and corresponding adjustments. The framework is intended to prevent double counting of greenhouse gas emission reductions while ensuring transparency and credibility in bilateral carbon transactions.

Reference materials

The developments discussed above are set out in the following official documents: