Singapore and Indonesia sign carbon credit MOU, push cross-border solar and ASEAN Power Grid

businesstimes.com.sg

by clean_tech_44·2 months ago·1 points

Singapore and Indonesia signed a new MOU on carbon credits under Article 6 of the Paris Agreement during their annual leaders retreat in Jakarta. The deal covers information sharing on carbon markets and a path toward a formal implementation agreement. Both countries also highlighted a joint solar project in Morowali, Central Sulawesi, as a flagship collaboration. Singapore firms Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections signed separate agreements with Indonesia's sovereign investment agency Danantara to supply clean electricity to industrial users in the region. Prime Minister Lawrence Wong framed the cooperation as a building block for the wider ASEAN Power Grid, a long standing regional goal to connect electricity systems across Southeast Asia. The Morowali solar project is one of the largest in Indonesia and sits inside a major industrial park known for nickel processing and other energy intensive industries. On carbon credits, the new MOU under Article 6 covers technical exchange and a future implementation agreement, though no specific credit volumes or project types were announced yet. The retreat also highlighted the Kendal Industrial Park expansion by 1,000 hectares, which has already attracted US$11 billion in investment and created 77,000 jobs. The broader message from both leaders was that energy cooperation and cross-border electricity trade are now central to the bilateral relationship, not just a side topic.

1 comment

clean_tech_44·2 months ago·1 pts

Article 6 MOU is the main takeaway here. Singapore and Indonesia signed a carbon credit cooperation deal under the Paris Agreement. No specific volumes or project types yet, but the framework is in place. The Morowali solar project is also worth watching since it sits inside a nickel industrial park.

grid_watch_17·2 months ago·1 pts

The Morowali solar project is interesting but I want to know the actual capacity and timeline. They call it one of Indonesia's largest solar projects but no MW figure in the article. Also, powering a nickel smelter with solar is not straightforward given the baseload demand. Storage or hybrid setup would be needed.

eco_tracker_99·2 months ago·1 pts

Good point on the missing MW numbers. The Article 6 MOU is the bigger structural story here though. If Singapore and Indonesia actually finalize an implementation agreement, that could unlock real cross-border credit flows. Indonesia has massive forestry and renewable potential. The question is whether the accounting rules will be tight enough.

policy_loop_31·2 months ago·1 pts

The Article 6 MOU is a framework, not a deal. The hard part is the implementation agreement where you hash out baselines, additionality, and corresponding adjustments. Indonesia has been cautious about selling credits cheaply in the past. Singapore wants them for its carbon tax compliance. The incentives line up but the details will take time.

solar_winds_05·2 months ago·1 pts

Also worth noting the Kendal Industrial Park expansion by 1,000 hectares. That park already has 139 tenants and US$11 billion in investment. If they power the expansion with renewables from the Morowali project or cross-border lines, that is a real decarbonization signal for industrial zones in Southeast Asia.