The new carbon credit programme provides global cooperation to support climate goals.
SINGAPORE – A new centralised global carbon programme was approved at COP29, marking a significant step towards global cooperation in achieving climate goals. The UN-managed programme will allow countries to purchase carbon credits of high environmental integrity, helping them meet their emissions targets under the Paris Agreement.
The carbon credits are generated from projects that reduce or remove greenhouse gases from the atmosphere. These projects include reforestation and carbon capture technologies or the replacement of polluting cookstoves with cleaner alternatives.
The mechanism is expected to take one to two years to become operational, as it will require time for projects to gain approval from the UN’s technical body. In the meantime, countries can still access credits through bilateral agreements.
Singapore has already entered into carbon trading partnerships with over 20 countries. These collaborations enable carbon tax-liable companies in Singapore to offset emissions through credits from projects in countries like Ghana and Papua New Guinea. While Singapore continues its bilateral approach, it will align these partnerships with the new UN system to provide clarity and credibility to the carbon market.
Experts note that the centralised mechanism could enhance Singapore’s role as a carbon services hub, offering companies more options for offsetting emissions as the global carbon market evolves.
