Singapore and Indonesia have signed a new agreement on carbon credits, deepening cooperation on climate finance as both countries seek to advance their climate goals amid an increasingly uncertain global environment.

Both countries will collaborate on carbon credits under a memorandum of understanding (MOU) signed on July 6 at the annual Singapore-Indonesia Leaders’ Retreat held in Jakarta, where Prime Minister Lawrence Wong met Indonesia President Prabowo Subianto.

Areas of cooperation include identifying high-integrity carbon credit projects, exchanging information and technical expertise on carbon markets, and working towards an implementation agreement under Article 6 of the Paris Agreement, the Ministry of Trade and Industry said in a statement on July 6.

The agreement was signed by Singapore Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong and Indonesia’s Minister of Environment and head of the Environmental Control Agency, Mohammad Jumhur Hidayat.

Speaking after the signing, Gan said Singapore was committed to building carbon markets that are “credible, transparent and mutually beneficial”.

“This MOU signals Singapore’s and Indonesia’s intent to work towards creating a framework for channelling climate finance into high-integrity projects, from protecting forests and restoring coastal ecosystems, to deploying clean technology solutions that reduce emissions and create new economic opportunities,” he said.

High-integrity carbon credits represent verified, permanent and additional carbon reductions without double counting, designed for compliance with the Paris Agreement.

-The Strait Times