PH, Singapore to ink legally binding carbon credit deal

President Ferdinand Marcos Jr. welcomes Singapore Prime Minister Lawrence Wong upon his arrival in Malacañang on Wednesday, June 4, for a bilateral meeting. — Screengrab from RTVM

MANILA, Philippines — The Philippines and Singapore are in the process of finalizing a legally binding agreement on carbon credit collaboration, marking a major step forward in climate change mitigation efforts in Southeast Asia, as well as climate cooperation and sustainable development efforts.

President Ferdinand Marcos Jr. and newly re-elected Singapore Prime Minister Lawrence Wong made the announcement during the delivery of their joint statements following a bilateral meeting held in Malacañang on Wednesday.

According to Marcos, as part of both nations’ climate change mitigation efforts, he and Wong reaffirmed the two countries’ commitment to “collaborate on a carbon credits mechanism in line with Article 6.2 of the Paris Agreement by commencing negotiations on an implementing arrangement.”

READ: PH, Singapore Ink MOU to Reduce Carbon Footprint

“It is hoped that the early completion of the negotiation will result in climate-friendly actions and increased investments in related sectors, thereby creating meaningful and sustainable livelihood and business opportunities for both Filipinos and Singaporeans alike, while producing good sustainability outcomes for our local communities,” Marcos said.

Wong, for his part, said this effort in sustainability will help both countries in meeting their respective climate goals, immediately continuing both countries’ endeavors after signing a memorandum of understanding on carbon credits collaboration in August 2024.

“Our officials are working now towards finalizing a legally binding implementation agreement that’s aligned with Article 6 of the Paris Agreement. This will facilitate commercial participation in carbon credits projects which can spur technology transfer, green investments, and create good jobs,” said Wong.

Expanding collaboration in renewable energy

Both leaders also announced plans to expand collaborations in renewable energy, with Marcos tagging Singapore as a “major partner” in the Philippines’ goal to diversify its energy sources.

“I encourage Singapore to increase its investments in the renewable energy sector as part of our forward-looking bilateral agenda,” said Marcos.

Wong then stated that Singaporean companies are interested in investing in renewable energy projects in the Philippines, particularly in solar and wind projects.

READ: PH solar player secures $10M from Singaporean investment firm

“Such projects can generate economic opportunities for the Philippines while supporting the Philippines’ renewable energy targets,” said Wong.

Wong also announced that he and Marcos agreed to accelerate these efforts as part of the two countries’ goal to achieve the Association of Southeast Asian Nation (Asean) power grid.

“This will improve energy resilience in the region and support Asean’s green transition,” said Wong.

Wong and his wife are in the country for a two-day state visit, marking Wong’s introductory trip to the Philippines.

Wong’s visit is also the first by a Singaporean prime minister to the Philippines since 2017. /das