The Philippines and Singapore have formalized a bilateral climate cooperation system that will allow the transfer of carbon credits and open new investment channels for mitigation projects, marking a significant step in the country’s participation in global carbon markets.

The agreement, signed on 30 April 2026 during ASEAN Climate Week, establishes the Philippines–Singapore Implementation Agreement under Article 6.2 of the Paris Agreement. It creates a structured pathway for the exchange of Internationally Transferred Mitigation Outcomes, which represent verified emissions reductions that can be traded between countries.

Deeper collaboration

The signing was led by environment secretary Juan Miguel T. Cuna and Singapore minister for Sustainability and the Environment Grace Fu, signaling deeper collaboration between the two Southeast Asian economies on climate action and green financing.

At the core of the agreement is a joint system for authorizing mitigation projects and tracking carbon transfers, supported by governance and transparency mechanisms aligned with international climate standards.

A joint committee will oversee implementation and manage an approved list of carbon crediting programs and methodologies.

Growing investor confidence

Secretary Cuna said the partnership reflects growing investor confidence in the country’s climate framework and its readiness to participate in global carbon markets.

“The agreement reflects the strength of a partnership built on trust, transparency, and shared ambition,” Cuna said, adding that it could help draw investments into renewable energy, waste management, methane reduction, nature-based solutions and climate-smart agriculture.

Singapore underscored the agreement’s role in channeling climate finance toward on-the-ground projects in the Philippines, while strengthening regional cooperation on carbon trading.

“This Agreement can lead the way for ASEAN in building a low-carbon future that delivers tangible benefits across the region,” Minister Fu said, noting its potential to unlock opportunities for businesses and communities engaged in emission reduction projects.