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Ministry of Sustainability and the Environment
Press releases

Singapore and Bhutan Invite Applications for Carbon Credit Projects under Bilateral Implementation Agreement

20 November 2025

Singapore and Bhutan have launched an application call for carbon credit projects under their Implementation Agreement on carbon credits cooperation.

  1. 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.

  2. 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.

  3. 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.

  4. 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

  1. 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.

  2. 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

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

Eligibility Criteria

  1. The Eligibility Criteria requires ICCs to represent emissions reductions or removals that occur within the timeframe specified under Article 6 of the Paris Agreement, and meet seven principles to demonstrate environmental integrity (see Table C-1 below).

Table C-1: Eligibility Criteria for ICCs

Principle

Definition

To comply with Article 6 of the Paris Agreement, the certified emissions reductions or removals must have occurred between 1 January 2021 and 31 December 2030.

Not double-counted

The certified emissions reductions or removals must not be counted more than once in contravention of the Paris Agreement.

Additional

The certified emissions reductions or removals must exceed any emissions reduction or removals required by any law or regulatory requirement of the host country, and that would otherwise have occurred in a conservative, business-as-usual scenario.

Real

The certified emissions reductions or removals must have been quantified based on a realistic, defensible, and conservative estimate of the amount of emissions that would have occurred in a business-as-usual scenario, assuming the project or programme that generated the certified emission reductions or removals had not been carried out.

Quantified and verified

The certified emissions reductions or removals must have been calculated in a manner that is conservative and transparent, and must have been measured and verified by an accredited and independent third-party verification entity before the ICC was issued.

Permanent

The certified emissions reductions or removals must not be reversible, or if there is a risk that the certified emissions reductions or removals may be reversible, there must be measures in place to monitor, mitigate and compensate any material reversal of the certified emissions reductions or removals.

No net harm

The project or programme that generated the certified emissions reductions or removals must not violate any applicable laws, regulatory requirements, or international obligations of the host country.

No leakage

The project or programme that generated the certified emissions reductions or removals must not result in a material increase in emissions elsewhere, or if there is a risk of a material increase in emissions elsewhere, there must be measures in place to monitor, mitigate and compensate any such material increase in emissions.

Eligibility List under the Singapore-Bhutan Implementation Agreement

  1. The Eligibility List of carbon crediting programmes and methodologies in Table C-2 adhere to the Eligibility Criteria and meet the requirements of both Singapore and Bhutan. The carbon crediting programmes and methodologies that are eligible may be different for each host country, as host countries also have their own criteria.

  2. Additional environmental integrity safeguards may be imposed for specific project types and/or methodologies. For more information, refer to the Singapore Carbon Markets Cooperation (SCMC) website[1].

Table C-2: Eligibility List under the Singapore-Bhutan Implementation Agreement

Carbon crediting programmes

Methodologies

Gold Standard for the Global Goals (GS4GG)

All active methodologies published before 31 March 2023 except those under the “Land Use and Forestry & Agriculture” category of GS4GG.

Verified Carbon Standard (VCS)

All active methodologies published before 31 March 2023, except those that are under the “Sectoral Scope 14” category of VCS and are not an allowable exception listed in the paragraph below.

Allowable exceptions from “Sectoral Scope 14” category of VCS are as follows:

  • Scenario 2a and 3 of VCS Jurisdictional and Nested REDD+ (JNR) framework

  • VM0012 Improved Forest Management in Temperate and Boreal Forests (LtPF)

  • VM0032 Methodology for the Adoption of Sustainable Grasslands through Adjustment of Fire and Grazing

  • VM0033 Methodology for Tidal Wetland and Seagrass Restoration

  • VM0036 Methodology for Rewetting Drained Temperate Peatlands

  • VM0041 Methodology for the Reduction of Enteric Methane Emissions from Ruminants through the Use of Feed Ingredients

  • VM0042 Improved Agricultural Land Management

Where any VCS methodology is used, the Project Participant will be required to demonstrate the sustainable development contributions or co-benefits of the relevant Mitigation Activity by submitting to the Joint Committee its verification report under the Climate, Community and Biodiversity Standards (CCB Standards), the Sustainable Development Verified Impact Standard (SD VISta) or another standard recognised by VCS for such purpose.

American Carbon Registry (ACR)

All active methodologies published before 31 March 2023, except methodologies under the “Sectoral Scope 3 (Land Use, Land Use Change and Forestry)” category of ACR.

Global Carbon Council (GCC)

All active methodologies published before 31 March 2023, except the following project types or methodologies:

  • Nuclear energy

  • HFC-23 abatement

  • Reducing Emissions from Deforestation and Degradation (REDD)

  • Afforestation & Reforestation (A&R)

  • Carbon Capture & Storage (CCS)

Architecture for REDD+ Transactions (ART)

All active methodologies published before 31 March 2023.


[1] https://www.carbonmarkets-cooperation.gov.sg/additional-environmental-integrity-safeguards/

Annex C: Information on the Singapore-Bhutan Implementation Agreement

  1. Singapore and Bhutan signed an Implementation Agreement on carbon credits cooperation under Article 6 of the Paris Agreement on 28 February 2025. Since the signing, Singapore has been working with Bhutan to operationalise the Implementation Agreement.

  2. As an additional contribution to mitigation of global emissions, Singapore has committed to cancel 2% of the correspondingly adjusted carbon credits authorised under this Implementation Agreement at first issuance. These carbon credits cannot be sold, traded, or counted towards any country’s emission targets, and will instead contribute towards a net reduction in global emissions.

  3. Singapore has committed to channel 5% of the value from correspondingly adjusted carbon credits authorised under this Implementation Agreement towards adaptation measures in Bhutan.

  4. Singapore has 10 Implementation Agreements on carbon credits collaboration to date. This includes Implementation Agreements with Papua New Guinea, Ghana, Bhutan, Chile, Peru, Rwanda, Paraguay, Thailand, Vietnam, and Mongolia.

  5. Effective international cooperation in carbon markets is an important part of Singapore’s efforts to achieve net zero emissions by 2050, given Singapore’s national circumstances as an alternative-energy disadvantaged country with limited domestic mitigation potential.

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