Singapore, February 28, 2025
The Royal Government of Bhutan and the Government of the Republic of Singapore officially signed the Implementation Agreement on Carbon Market Cooperation in Singapore today. This milestone agreement strengthens bilateral collaboration under Article 6.2 of the Paris Agreement, facilitating Bhutan’s participation in international carbon markets. Singapore is emerging as an important global hub for carbon trading and this partnership will allow the two countries to develop projects with sustainable development benefits and support towards raising environmental ambition through mitigation.
The signing ceremony was attended by senior government officials from both countries and led by Lyonpo Gem Tshering, Ministry of Energy of Natural Resources, Bhutan, and Ms. Grace Fu Hai Yien, Ministry of Sustainability and Environment, Singapore. The agreement paves the way for cooperation between Bhutan and Singapore in implementing high-integrity carbon credit transactions that align with the goals of the Paris Agreement and Bhutan’s commitment to maintaining carbon neutrality. This is the first Article 6.2 bilateral agreement after the Parties adopted the Article 6 rulebook in Baku after nine years of negotiations.
Speaking at the event, Hon’ble Minister Gem Tshering stated, “Bhutan has placed environmental conservation at the heart of our national identity, guided by our deep reverence for nature. As a carbon-negative country, we remain steadfast in our commitment to balancing economic progress with environmental integrity. Our Implementation Agreement with Singapore sends a powerful message on the importance of international collaboration on high-integrity carbon markets to address climate change. We believe that climate challenges can be met with innovative solutions that inspire hope and create green opportunities for all. We are pleased that our cooperation will reinforce Bhutan’s long-standing vision of sustainable development—one that conserves our forests, supports our communities, and ensures our planet continues to thrive for generations to come.”
Under this agreement, Bhutan and Singapore will work closely on the development and transfer of carbon credits that meet stringent international standards. The cooperation will contribute to Bhutan’s long-term sustainability goals while enabling Singapore to fulfill its climate commitments through high-quality carbon credit investments.
Hon’ble Minister Ms. Grace Fu Hai Yien remarked, “Singapore is pleased to partner with Bhutan, a carbon-negative country and a leader in environmental stewardship, to accelerate climate action through this Implementation Agreement. By working together on high-integrity carbon markets, we can drive sustainable growth, mobilize climate finance, and reduce global carbon levels. This collaboration strengthens our shared vision for a greener and more sustainable future and accelerate the global green transition.”
The signing of this Implementation Agreement builds on the Memorandum of Understanding (MoU) signed between the two countries in 2023 and is a testament to Bhutan’s proactive engagement in global climate finance mechanisms. With this agreement, Bhutan is further positioning itself as a leader in sustainable development and international carbon market cooperation.
For further inquiries, please contact:
Chimi Dorji
Environment Officer
Department of Environment and Climate Change, MoENR
chimidorji@moenr.gov.bt
