Singapore and Peru Launch Call for Carbon-Credit Projects Under Joint Agreement

The governments of Singapore and Peru today announced the opening of applications for carbon-credit projects under their bilateral Implementation Agreement. This marks Singapore’s second call for such projects following its agreement with Ghana, and is part of Singapore’s broader collaboration effort globally.

Projects authorised under this call will generate carbon credits aligned with Article 6(2) of the Paris Agreement-meaning they must meet rigorous criteria for additionality, permanence, no double‐counting and independent verification. The credits may be eligible for Singapore-based tax-liable companies to offset up to five percent of their taxable emissions under Singapore’s International Carbon Credit (ICC) framework.

Applications are to be submitted from 24 October 2025 onwards and will be reviewed jointly on a rolling basis. The Agreement also includes commitments by Singapore to cancel 2 % of issued carbon credits at first issuance and to channel 5 % of the value from the credits towards adaptation projects in Peru (such as coastal protection and heat resilience).

The Singapore–Peru Implementation Agreement is one of the more advanced examples of Article 6.2 bilateral cooperation now emerging under the Paris Agreement architecture. The rigorous quality criteria - additionality, permanence, no double-counting, independent verification - combined with the 2 percent first-issuance cancellation and 5 percent adaptation-share allocation, set a credible precedent for what genuine, host-country-benefit-preserving credit trading can look like.

For Singapore, the arrangement extends the country's climate-financing toolkit and provides tax-liable companies with a compliance-eligible pathway to offset a share of taxable emissions. For Peru, it channels project financing toward priorities including coastal protection and heat resilience - matching the credit revenue to concrete adaptation outcomes rather than treating adaptation as an afterthought.

For corporates evaluating Article 6-eligible carbon credit purchases, project developers assessing bilateral-agreement participation, and financial institutions structuring related transactions, Cognitud's climate action, responsible investment and market intelligence teams help clients evaluate credit quality against the emerging Article 6 architecture, structure procurement frameworks aligned with jurisdictional compliance requirements, and disclose credit use in a way that meets ISSB, TCFD and voluntary-market integrity expectations.