Singapore, Laos ink pacts on carbon credits, education

Singapore and Laos inked a carbon credits deal on July 9, paving the way for bilateral trade in the emerging area and deepening a 50-year friendship between the two nations.

- Anjali Raguraman

The new agreement “opens yet another new frontier of cooperation”, said Prime Minister Lawrence Wong during a lunch hosted for Lao Prime Minister Sonexay Siphandone on his first official visit to Singapore since taking office in December 2022.

“Singapore looks forward to working closely with Laos to conclude the legally binding Implementation Agreement on carbon credits collaboration, which will further connect our countries in mutually beneficial ways,” said PM Wong, addressing a room of delegates from both countries at the Conrad Centennial Singapore.

The deal sets out a bilateral framework for the international transfer of correspondingly adjusted carbon credits, as well as the exchange of best practices and knowledge on carbon market mechanisms, said the Ministry of Trade and Industry.

It is aligned with Article 6 of the Paris Agreement, an international treaty on climate change adopted in 2015. The article allows countries to cooperate to achieve emission targets and to tackle climate change, while also unlocking financial support for developing countries.

“It will help us to achieve our climate targets, facilitate investments, create jobs, promote sustainable development, and encourage the deployment of clean technology,” said PM Wong.

Dr Sonexay is in Singapore for a day. Earlier in the day, he was received at a ceremonial welcome by PM Wong at Parliament House – instead of the Istana, where such official visits are typically hosted, as parts of the Istana are currently undergoing major restoration works.