Vietnam and Singapore have agreed to advance bilateral cooperation on carbon credit trading, establishing a legal framework under Article 6 of the Paris Agreement that will enable emission reduction projects in Vietnam to generate credits transferable to Singapore.
According to Vietnam+, the deal was signed virtually by Tran Duc Thang, Vietnam’s Acting Minister of Agriculture and Environment, and Grace Fu, Singapore’s Minister for Sustainability and the Environment, on Monday.
The move positions both countries at the forefront of international carbon market development in Southeast Asia.
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The collaboration is expected to facilitate climate financing, stimulate investment in clean technologies, and support Vietnam’s shift toward renewable energy, sustainable agriculture, and a circular economy.
During the signing ceremony, Mr. Thang encouraged Singaporean firms to engage directly in developing high-quality carbon credit initiatives within Vietnam.
Ms. Fu described the agreement as opening a new area of cooperation between the two countries, noting that it is expected to create fresh opportunities in their shared transition toward a low-carbon economy.
She said the framework would drive mitigation efforts and bolster regional climate action.
Details on project approval processes and methodologies eligible under the scheme will be announced by Vietnam’s Ministry of Agriculture and Environment at a later date.
The initiative could help attract international capital into Vietnam and deliver long-term benefits such as job creation, improved water access, greater energy security, and pollution reduction in local communities.
This bilateral deal is an example of regional implementation of carbon trading under Article 6.2 of the Paris Agreement—an emerging mechanism designed to help countries meet their climate goals through cross-border cooperation.
