Sri Lanka and Singapore ink partnership on carbon credits

SINGAPORE - Sri Lankan President Ranil Wickremesinghe met Prime Minister Lee Hsien Loong at the Istana on Tuesday, and they witnessed the signing of a memorandum of understanding (MOU) to collaborate on carbon credits in accordance with the Paris Agreement.

In a statement on Tuesday, the Ministry of Trade and Industry (MTI) said the partnership will allow Singapore and Sri Lanka to exchange best practices on carbon credits such as national regulatory frameworks as well as policies governing the management and development of greenhouse gas mitigation activities and resources.

Under the MOU, Singapore and Sri Lanka will collaborate on a legally binding implementation agreement to develop a bilateral framework for the international transfer of correspondingly adjusted carbon credits in accordance with Article 6.2 of the Paris Agreement.

The agreement will include the criteria and processes for carbon credits aligned with the Paris Agreement, said MTI.

When completed, this will allow companies in Singapore that are carbon tax liable to offset up to 5 per cent of their taxable emissions by purchasing carbon credits from eligible projects.

The two countries will also identify mutually beneficial projects and explore potential opportunities to collaborate with carbon markets with third countries.

The MOU was signed by MTI’s permanent secretary for development Beh Swan Gin and Sri Lanka’s High Commissioner to Singapore Sashikala Premawardhane.

Dr Beh said: “Singapore and Sri Lanka’s cooperation on carbon credits aims to advance climate action. This MOU enables both countries to make progress on our respective climate targets while enabling mutually beneficial outcomes, such as creating new jobs in the green economy and enhancing biodiversity protection”.

Singapore has signed similar MOUs or letters of intent with 12 other countries, including Bhutan, Cambodia and Vietnam.

Mr Wickremesinghe is on a two-day working visit till Tuesday, the Ministry of Foreign Affairs said.

On Monday, he

met President Halimah Yacob at the Istana,

and Minister for Defence Ng Eng Hen and Minister for Sustainability and the Environment Grace Fu in separate meetings.

PM Lee said in a post on his Facebook page that he had a productive discussion with Mr Wickremesinghe during their meeting, and that the pair exchanged views on global developments.

He said: “President Wickremesinghe’s visit attests to the warm and growing relations between Singapore and Sri Lanka, which is underpinned by strong people-to-people ties.

“We had a comprehensive discussion on our broad-based bilateral cooperation, including ways to deepen ties between our countries in the areas of trade, food security and green energy. I look forward to working with President Wickremesinghe to strengthen our bilateral relations.”

Mr Wickremesinghe was hosted to lunch on Tuesday by Minister for Home Affairs and Law K. Shanmugam, and joined by Minister for Foreign Affairs Vivian Balakrishnan and Minister for Manpower and Second Minister for Trade and Industry Tan See Leng.

President Wickremesinghe will depart Singapore on Tuesday evening.