Singapore, Chile sign MOU for carbon markets, pricing collaboration

The markets will identify project opportunities and share best practices.

Singapore signed a memorandum of understanding (MOU) with Chile to collaborate on carbon markets and carbon pricing in line with the Paris Agreement.

In a statement, the Ministry of Trade and Industry said the collaboration under the MOU will include the identification of mutually beneficial projects and the exchange of best practices related to carbon services and trading ecosystem development.

The two markets will also look into collaborating in carbon markets with third countries.

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Singapore and Chile will work on a legally binding implementation deal that outlines a bilateral framework for the international transfer of correspondingly adjusted carbon credits.

When completed, carbon tax-liable firms in Singapore can purchase carbon credits from eligible projects to offset up to 5% of their taxable emissions.

The MOU was signed by Trade and Industry Permanent Secretary (Development) Beh Swan Gin, and Secretary General of Foreign Policy of Chile’s Ministry of Foreign Affairs Ambassador Alex Wetzig.

The country has also signed the same MOU or Letter of Intent with various markets including Bhutan, Cambodia, Colombia, Dominican Republic, Ghana, Kenya, Mongolia, Morocco, Papua New Guinea, Peru and Vietnam.