Philippines seeks to finalize carbon credit pact with Singapore

MANILA, Philippines — The Philippines aims to finalize a legally binding carbon credit implementation deal with Singapore by the end of the year, a move expected to bring in proceeds from carbon trading while supporting sustainable development.

Environment Secretary Raphael Lotilla noted the target timeline for when the country could sign the Reducing Emissions from Deforestation and Forest Degradation (REDD+) carbon credit deal with Singapore, building on previous discussions between the two countries.

“The target is to finish negotiations by this year and the signing is targeted during the chairmanship of the Philippines in (Association of Southeast Asian Nations), which is early next year,” Lotilla told lawmakers during the budget hearing for the agency at the Senate.

REDD+ is an international framework under the United Nations that aims to reduce greenhouse gas emissions caused by deforestation and forest degradation.

The program provides financial incentives to developing countries to manage forests sustainably, conserve existing forest cover and restore degraded lands.

Countries earn carbon credits for verified reductions in emissions, which can then be traded in global carbon markets.

REDD+ also requires social and environmental safeguards, with projects required to protect the rights and livelihoods of local communities and Indigenous peoples while promoting biodiversity and long-term forest conservation.

“We’re just finalizing the list of eligible projects… One item there is the inclusion of the early retirement of (coal-fired power plants),” Environment Undersecretary Analiza Rebuelta-The said during the same hearing.

“As soon as we finish the annex, some of the provisions on the implementation agreement will be a lot easier to negotiate,” she added.

Singapore signed a carbon credit implementation agreement with Mongolia on Oct. 6, marking its 10th such collaboration.

The deal with Mongolia signals Singapore’s growing efforts to establish cross-border mechanisms under Article 6 of the Paris Agreement.