Jigmi Wangdi

Singapore and Bhutan signed a Memorandum of Understanding (MOU) on carbon collaboration under Article 6.2 of the Paris Agreement marking a milestone in bilateral relations between the two nations.

Singapore Trade and Industry Minister Gan Kim Yong and Energy and Natural Resources Minister Loknath Sharma signed the MoU at a simple ceremony in Thimphu yesterday. 

The collaboration aims to raise environmental ambition, build capacity and climate resilience while contributing to global efforts in mitigating greenhouse gas emissions. Singapore and Bhutan seek to promote sustainable practices and low-carbon solutions by exploring the development of carbon markets and generating carbon credits.

One of the key benefits of this partnership is Bhutan’s ability to leverage its abundant natural resources, particularly its vast forest cover, to generate carbon credits that can be traded on the global market. Singapore’s expertise in trade and finance will provide invaluable support in developing sustainable mechanisms for offsetting carbon emissions. 

The collaboration holds great promise for both countries. By integrating sustainable practices into economic development, Bhutan and Singapore aim to create green jobs, attract green investments, and foster innovation in climate-friendly technologies. This joint effort aligns with their commitment to the implementation of Article 6 of the Paris Agreement, demonstrating their proactive approach to combatting climate change.

The partnership will not only bring economic opportunities but also foster knowledge exchange, innovation, and capacity-building. Singapore’s deep understanding of carbon markets and its contribution to sustainable development goals will play a crucial role in supporting Bhutan’s efforts.

Both countries aspire to inspire and catalyse global action in the fight against climate change, working towards the objectives set by the Paris Agreement. The signing of the MOU is just the beginning of their collaboration, as they move forward to develop an implementation agreement and identify specific projects to further advance their carbon reduction efforts.

Together, Singapore and Bhutan strive to inspire and catalyse global action in combating climate change and achieving the objectives of the Paris Agreement.

The MOU is the beginning of the cooperation. The implementation agreement and identification of projects will soon follow.