Singapore & Peru Open Applications for Carbon-Credit Projects

The governments of Singapore and Peru have launched a joint call for applications to develop carbon-credit projects under their Implementation Agreement signed in April 2025. Authorized projects will generate internationally transferable mitigation outcomes (ITMOs) aligned with Article 6(2) of the Paris Agreement and will help both countries pursue their climate goals.

Starting from 24 October 2025, applicants may submit proposals on a rolling basis. Projects must meet eligibility criteria established under Singapore’s International Carbon Credit (ICC) framework, including principles such as additionality, no double-counting, measurement and verification by third-party auditors, and permanence.

Under the agreement, Singapore will cancel 2% of the issued and correspondingly adjusted carbon credits at first issuance so they cannot be sold or counted toward national targets, and will channel 5% of the value from these credits toward adaptation measures in Peru (such as coastal protection and heat resilience).

The Singapore–Peru call marks another concrete step in operationalising Article 6.2 bilateral cooperation. The specific eligibility criteria - additionality, no double-counting, third-party verification, permanence - combined with the 2 percent cancellation at first issuance and 5 percent adaptation-share allocation, set a benchmark for what genuine, host-country-benefiting bilateral carbon-credit arrangements can look like in practice.

For Singapore-based tax-liable companies, Article 6-eligible credits from arrangements like this provide a compliance-relevant pathway to offset a share of taxable emissions - bringing high-quality international credits into a regulated corporate carbon-pricing regime. For Peru, the arrangement channels finance toward specific adaptation priorities (coastal protection, heat resilience) that domestic budgets often struggle to fund at scale.

For corporate carbon-credit purchasers, project developers evaluating Article 6 opportunities and their financial and legal advisors, Cognitud's climate action, responsible investment and sustainability due diligence teams help clients evaluate bilateral-agreement credit quality, structure procurement processes aligned with jurisdictional compliance requirements, and prepare disclosures that meet ISSB, TCFD and voluntary-market integrity expectations for the growing role of international credits in corporate net-zero strategy.