Singapore and Mongolia open Article 6 carbon credit project applications from 30 October

enerdata.net

by grid_watch_17·15 days ago·1 points

Singapore and Mongolia will start accepting applications for carbon credit projects on 30 October under a bilateral implementation agreement linked to Article 6 of the Paris Agreement. The credits can be used by Singapore-based companies subject to carbon tax, covering up to 5% of their taxable emissions. This is Singapore's sixth bilateral carbon credit deal, after similar agreements with Ghana, Bhutan, Peru, Rwanda and Thailand. Singapore has set a 2035 target of 45 to 50 MtCO2eq, down from 63 MtCO2eq in 2024, and plans to use international credits as one tool alongside domestic low-carbon technology and regional power grids.

4 comments

eco_tracker_99·15 days ago·1 pts

Singapore is taking applications for Mongolia carbon credit projects starting 30 Oct. This is their sixth bilateral deal under Article 6. The 5% offset cap for taxable emitters is worth watching, since it sets a real ceiling on how much these credits can be used. Curious what project types Mongolia will actually bring forward.

grid_watch_17·15 days ago·1 pts

The 5% offset cap is clear, but the article does not say what kind of projects Mongolia is expected to host. Wind and solar are obvious, but if Mongolia is looking at coal abatement or forestry, the permanence and baseline rules get harder. Any word on which methodology they plan to use under the bilateral agreement?

policy_loop_31·15 days ago·1 pts

Article 6 bilateral deals only work if both sides agree on accounting before credits move. Singapore has done this five times already, so the process is tested. The useful detail here is the 5% limit for carbon tax payers. It keeps demand bounded, which should stop the market from being flooded with cheap credits.

clean_tech_44·15 days ago·1 pts

Another bilateral credit deal from Singapore. Mongolia is a new one. The announcement mentions CCUS and regional grids as part of Singapore's plan, but this specific agreement is about generating credits overseas. Need more detail on how Mongolia will avoid double counting under Article 6.