Singapore has signed its second carbon credit implementation agreement with Ghana, following a similar deal with Papua New Guinea last December.
The latest agreement with Ghana sets out a legally binding framework and processes for generating and transferring carbon credits between the two countries and is aligned with Article 6 of the Paris Agreement. This is similar to Singapore’s previous agreement with Papua New Guinea.
Carbon credit projects authorized under the agreement will seek to promote sustainable development and generate benefits for local communities, such as job creation, access to clean water, improved energy security, and reduced environmental pollution.
Project developers will have to make a contribution equivalent to 5 percent of the proceeds from authorised carbon credits towards climate adaptation in Ghana. Project developers will also have to cancel 2 percent of authorised carbon credits at the first issuance to ensure an additional contribution to the overall mitigation of global emissions.
Under Singapore’s International Carbon Credit (ICC) framework, eligible ICCs generated under this agreement may also be used by Singapore-based carbon tax-liable companies to offset up to 5 percent of their taxable emissions.
Last December, the Singapore government published a list of eligible ICCs, which became effective on January 1 and will be reviewed annually.
