Zambia Partners with Singapore for Carbon Trading at COP29
On November 19, Singapore and Zambia signed an MOU to collaborate on carbon markets during the COP29 summit in Baku, Azerbaijan. The agreement aims to advance into a bilateral pact under Article 6 of the Paris Agreement, enabling Singapore to purchase carbon credits from Zambia to offset emissions while funding sustainable development in the African nation.
Zambia becomes Singapore's latest partner in carbon trading, with only Papua New Guinea and Ghana having reached full implementation agreements among over 20 partner countries. These agreements allow Singapore's carbon tax-liable companies to offset up to 5% of their emissions. For Zambia, the partnership channels funding into local sustainable projects, creating jobs, enhancing energy security, and supporting clean energy access.
The initiative is part of Singapore’s broader strategy to overcome domestic decarbonization challenges through international cooperation. COP29 also saw the launch of a UN-managed global carbon market, though it may take years to issue the first credits.
Singapore’s Minister for Sustainability and the Environment Grace Fu highlighted the role of credible carbon markets in raising climate finance. Despite being classified as a developing country under the Paris Agreement, Singapore has pledged $500 million to support green projects in Asia, including renewable energy transitions and industrial decarbonization, as part of a $5 billion blended finance initiative.
These efforts reflect Singapore's dual approach: accelerating its low-carbon transition while supporting global climate action through innovative financing.
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