Singapore and Bhutan Invite Applications for Carbon Credit Projects Under Bilateral IA

SINGAPORE AND BHUTAN INVITE APPLICATIONS FOR CARBON CREDIT PROJECTS UNDER BILATERAL IMPLEMENTATION AGREEMENT

Singapore and Bhutan have launched an application call for carbon credit projects under their Implementation Agreement on carbon credits cooperation.  This is Singapore’s third call for project applications after similar agreements with Ghana and Peru.

Authorised projects will unlock additional carbon mitigation in Bhutan and advance both countries’ climate ambitions through targeted financing. These projects will promote sustainable development and benefit local communities through job creation, clean water access, improved energy security, and reduced environmental pollution

Authorised projects can generate carbon credits aligned with Article 6 of the Paris Agreement. Under Singapore’s International Carbon Credit (ICC) Framework, these credits will be eligible for use by Singapore-based carbon tax-liable companies to offset up to 5% of their taxable emissions.

From 1 December 2025, interested parties may submit applications for their carbon credit projects in Bhutan to be authorised. Applications submitted will be reviewed by the Singapore and Bhutan governments.

Application and Authorisation Process

The application and authorisation process comprises three stages, each corresponding to a different stage of implementation for the carbon credit project (See Annex A). The first two stages require applicants to submit details on the design and implementation plan for the carbon credit project in the lead-up to project authorisation. The final stage is for corresponding adjustments to be applied to the carbon credits generated from the authorised project, in accordance with Article 6, Paragraph 2 of the Paris Agreement. Detailed steps on the application process can be found at Singapore’s Carbon Markets Cooperation website, at www.carbonmarkets-cooperation.gov.sg.

Singapore and Bhutan will assess applications against each country’s respective requirements. For Singapore, these projects must meet Singapore’s eligibility criteria for ICCs. The eligibility criteria, and the list of eligible carbon crediting programmes and methodologies under the Singapore-Bhutan Implementation Agreement, are at Annex B, and on the Carbon Markets Cooperation website.

Annex A: Flowchart of Application and Authorisation Process

Annex B: Singapore’s Eligibility Criteria and the Eligibility List under the Singapore-Bhutan Implementation Agreement

Annex C: Information on the Singapore-Bhutan Implementation Agreement