Singapore and the Philippines have established a legally binding framework for cross-border carbon trading. Under this Article 6.2 agreement, Singaporean companies can use authorized credits from Philippine projects to offset up to 5% of their taxable emissions. The deal includes specific safeguards to ensure environmental integrity, such as canceling 2% of issued credits for net global reductions and allocating 5% of proceeds to climate adaptation in the Philippines. Target sectors include renewable energy, methane reduction, and nature-based solutions.
