Speech by Ms Grace Fu, Minister for Sustainability and the Environment, at the Implementation Agreement Signing Ceremony with Papua New Guinea on 8 December 2023
Your Excellency Simo Kilepa, Papua New Guinea’s Minister for Environment, Conservation and Climate Change,
Ladies and gentlemen,
1 Good morning. It gives me great pleasure to be here today, joining Minister Kilepa to sign the Implementation Agreement for cooperation under Article 6 of the Paris Agreement between Singapore and Papua New Guinea. This is Singapore’s first Implementation Agreement, which is especially significant because it is with Papua New Guinea, a fellow Alliance of Small Island States (AOSIS) member.
2 Article 6 is an important mechanism that allows countries to voluntarily cooperate to achieve their climate targets, including their Nationally Determined Contributions (NDCs), while advancing global climate action and ambition. Our Implementation Agreement is a case in point. The Agreement will set up the bilateral framework for the transfer of carbon credits with corresponding adjustments, aligned with Article 6. This will create the avenue for worthwhile climate mitigation projects to be financed.
3 The Agreement will require project developers to cancel 2% of authorised carbon credits at issuance to ensure overall mitigation of global emissions, and make a contribution equivalent to 5% share of proceeds of authorised carbon credits towards adaptation action in Papua New Guinea. This ensures that we can advance both mitigation and adaptation actions required to deliver the Paris Agreement goals.
4 High-integrity carbon markets can contribute to much-needed climate action globally, and it is imperative that the environmental integrity of carbon credits under this Implementation Agreement meets internationally recognised standards.
5 The carbon crediting projects under this Implementation Agreement will also bring sustainable development benefits to local communities, including the creation of sustainable jobs, improved energy security and reduced pollution.
6 I would like to thank Papua New Guinea for a fruitful year of collaboration. Singapore will work closely with Papua New Guinea on the successful implementation of our carbon credit cooperation.
7 Thank you.