Singapore and Vietnam sign MOUs to collaborate on energy, carbon credits
The MOU on Carbon Credits Collaboration is the first to be signed between Singapore and an ASEAN member state.
SINGAPORE: Singapore and Vietnam have signed Memorandums of Understanding (MOUs) to collaborate on energy and carbon credits, the Ministry of Trade and Industry (MTI) said on Monday (Oct 17).
The MOU on Carbon Credits Collaboration is the first to be signed between Singapore and an Association of Southeast Asian Nations (ASEAN) member state.
"The MOU signals Singapore’s and Vietnam’s commitment to collaborate on carbon credit pilot projects which would support both countries in meeting their climate targets," MTI said in a press release.
The ministry added that the MOU on Energy Cooperation covers several key areas such as the development and financing of renewable energy as well as the development of interconnectors for increased grid resilience, stability and electricity trading.
Other areas of collaboration include research, development and deployment of low-carbon energy technologies and solutions such as hydrogen, ammonia, energy storage systems, smart grids and related infrastructure.
The signings took place on Monday, on the sidelines of President Halimah Yacob’s state visit to Vietnam from Oct 16 to Oct 20.
Second Minister for Trade and Industry Dr Tan See Leng signed the MOU on Energy Cooperation with Vietnam Minister of Industry and Trade Ngyuen Hong Dien, and the MOU on Carbon Credits Collaboration with Vietnam Minister of Natural Resources and Environment Dr Tran Hong Ha.
"Singapore and Vietnam are close partners, and are committed to supporting both our countries’ energy transition as well as regional decarbonisation," said Dr Tan.
Dr Tan said that the MOU on Energy Cooperation will pave the way for greater cross-border electricity trade and the development and financing of low-carbon technologies.
He added that the MOU on Carbon Credits Collaboration underscores both countries' shared commitment to work together on carbon credit pilot projects aligned to Article 6 of the Paris Agreement, which allows countries to partially meet their climate targets by buying offset credits representing emission cuts by others.
Under the MOU, Singapore and Vietnam will also undertake knowledge exchanges on carbon tax, carbon credits frameworks and other climate issues.
"We believe that international collaboration, such as that between Singapore and Vietnam, is critical in promoting global climate action to achieve the goals of the Paris Agreement," said Dr Tan.
In February this year, Finance Minister Lawrence Wong announced that Singapore is looking to bring forward its net-zero target to “by or around mid-century”, aligning its goals with the Glasgow Climate Pact amid international developments in technology and carbon markets.
Previously, Singapore announced that it would achieve net-zero emissions "as soon as viable" in the second half of the century under its long-term low-emissions development strategy. It also pledged to peak emissions around 2030, and halve its emissions from its peak by 2050.