Singapore has joined countries including Thailand, Malaysia, Vietnam, South Korea, Bhutan, and Japan in advancing carbon credit agreements to meet climate goals under the Paris Agreement. These partnerships allow Singapore to offset emissions while funding sustainable projects abroad, strengthening regional cooperation and positioning the city-state as a leader in green finance.
On August 19, 2025, Singapore signed a landmark carbon credit trading agreement with Thailand, its first with a Southeast Asian nation. The deal enables Singapore to purchase carbon credits from Thai projects, helping both nations achieve their Paris Agreement targets.
This agreement is part of Singapore’s broader climate strategy, with similar deals already signed with countries such as Paraguay, Bhutan, Chile, Rwanda, and Papua New Guinea. Collectively, these partnerships aim to offset up to 2.5 million tonnes of emissions annually, while channeling finance into renewable energy and sustainable development projects.
Officials emphasized that such collaborations not only reduce emissions but also deliver tangible benefits to local communities, including job creation and environmental protection. By expanding its network of agreements, Singapore is reinforcing its role as a regional hub for carbon markets and green finance.
Major Takeaways
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Singapore signed carbon credit trading agreement with Thailand in August 2025
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First Southeast Asian partner for Singapore in carbon markets
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Agreements also signed with Bhutan, Chile, Rwanda, Paraguay, and more
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Aim to offset 2.5 million tonnes of emissions annually
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Deals support renewable energy and sustainable development projects abroad
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Strengthens Singapore’s leadership in regional climate cooperation and green finance
Conclusion
Singapore’s growing portfolio of carbon credit agreements highlights its commitment to climate action and regional collaboration. By linking emissions reduction with sustainable development, the city-state is positioning itself as a global leader in carbon markets, while supporting partner nations in achieving long-term environmental goals.
Sources: The Straits Times, Singapore EDB, Ministry of Trade and Industry