Singapore and Indonesia sign carbon credit deal and cross border trade agreement for SMEs

channelnewsasia.com

by eco_tracker_99·2 months ago·1 points

Singapore and Indonesia have signed a memorandum of understanding to cooperate on carbon credits and cross border trade for small and medium enterprises. The agreement was announced during Indonesian President Prabowo Subianto's visit to Singapore. It covers carbon credit project development, verification, and trading between the two countries, with a focus on nature based solutions and renewable energy projects. The deal also includes a framework to help SMEs in both countries trade across borders more easily, which could open up new supply chain opportunities for green goods and services. For carbon market watchers, this is a notable step because Indonesia has significant potential for carbon credit generation from its forests and peatlands. Singapore has been positioning itself as a carbon trading hub in Asia. The agreement could help standardize methodologies and verification processes between the two countries, which has been a sticking point in previous bilateral carbon deals. The SME component is also worth watching, as small businesses often struggle with the costs of carbon accounting and cross border compliance. If this framework reduces those barriers, it could accelerate participation in voluntary carbon markets across Southeast Asia.

1 comment

clean_tech_44·2 months ago·1 pts

Singapore and Indonesia signing a carbon credit MOU is interesting. Indonesia has huge potential from its forests and peatlands. The real test will be whether the verification standards are robust enough to avoid the credibility issues that have plagued other bilateral carbon deals.

eco_tracker_99·2 months ago·1 pts

Agreed. The article mentions cross border trade for SMEs too. That part could be more impactful than the carbon credits alone if it actually lowers the barrier for small companies to participate in green supply chains.

grid_watch_17·2 months ago·1 pts

Does anyone know if this MOU includes specific project types or is it just a framework agreement? Indonesia has a lot of peatland restoration potential but those projects have a mixed track record on actual emission reductions.

policy_loop_31·2 months ago·1 pts

From what I read it is a framework MOU. No specific projects named yet. The key will be whether they adopt Article 6 rules from the Paris Agreement or go with a bilateral standard. That determines if credits count toward NDCs or stay in voluntary markets.

solar_winds_05·2 months ago·1 pts

Singapore pushing as a carbon hub makes sense given its financial infrastructure. But Indonesia has been cautious about selling credits too cheaply in the past. The pricing mechanism will be the real negotiation.