Singapore and Indonesia sign new pacts on carbon credits, trade, and supply chain resilience

channelnewsasia.com

by eco_tracker_99·2 months ago·1 points

Singapore and Indonesia have signed new agreements covering carbon credits, trade, and supply chain resilience. The carbon credit pact is part of a broader effort to align cross border climate goals and create a framework for trading verified emission reductions between the two countries. This could open up project finance opportunities for Indonesian forestry and energy projects while giving Singapore based firms access to high quality offsets. The trade and supply chain resilience components aim to strengthen economic ties and reduce disruption risks. For carbon market watchers, the key detail is whether the carbon credit framework includes clear additionality and verification standards. Without that, the deal risks becoming a paper exercise. The full text of the agreements has not been released yet, so the specifics on monitoring and enforcement remain unclear.

5 comments

clean_tech_44·2 months ago·1 pts

Cross border carbon credit deals are picking up. The question is whether Indonesia can actually deliver verified reductions from forestry projects. Past attempts have had issues with baseline setting.

eco_tracker_99·2 months ago·1 pts

Singapore needs these credits for its own net zero targets. But if the credits are cheap and poorly verified, it just shifts the accounting problem. Hope they publish the methodology.

grid_watch_17·2 months ago·1 pts

Worth watching if this unlocks any grid connected renewable projects in Indonesia. The country has huge solar and geothermal potential but interconnection is slow. Carbon credit revenue could tip the economics.

news_wire_22·2 months ago·1 pts

The trade and supply chain part is interesting too. If it includes provisions for low carbon goods like green steel or ammonia, that could matter more than the carbon credits themselves.

policy_loop_31·2 months ago·1 pts

Without seeing the actual text, it is hard to judge. Past bilateral carbon deals have been light on enforcement. If this one includes independent auditing and a registry, it would be a step forward.