Enviro News Asia, Singapore — Singapore and Bhutan have opened applications for carbon credit projects under a bilateral Implementation Agreement on carbon credits cooperation, marking a new phase of climate collaboration between the two countries. The initiative seeks to mobilize private and public actors to support emissions mitigation while advancing sustainable development objectives.
The governments of Singapore and Bhutan jointly invite project developers to submit proposals that can deliver additional carbon mitigation outcomes in Bhutan. Through targeted financing, the authorized projects aim to support local communities by creating jobs, improving access to clean water, strengthening energy security, and reducing environmental pollution.
The cooperation allows approved projects to generate carbon credits that comply with Article 6 of the Paris Agreement. Under Singapore’s International Carbon Credit (ICC) Framework, eligible credits may be used by Singapore-based companies subject to carbon tax obligations to offset up to five percent of their taxable emissions.
From 1 December 2025, interested parties may submit applications for carbon credit projects to be implemented in Bhutan. Singapore and Bhutan will jointly review and assess all submissions in accordance with their respective national requirements.
The application and authorization process consists of three stages aligned with the project lifecycle. Applicants must first provide detailed information on project design and implementation plans prior to authorization. In the final stage, the governments will apply corresponding adjustments to the carbon credits generated, in line with Article 6, Paragraph 2 of the Paris Agreement.
Singapore will evaluate proposed projects against its eligibility criteria for International Carbon Credits, including approved carbon crediting programs and methodologies under the Singapore–Bhutan Implementation Agreement. Both governments emphasize that the process aims to ensure environmental integrity, transparency, and tangible development benefits. (*)
