Vietnam has approved an implementation agreement with Singapore for cooperation on carbon credits under Article 6 of the Paris Agreement. The agreement creates a bilateral legal framework for Vietnamese organisations and businesses to develop greenhouse gas emission reduction projects, generate internationally recognised carbon credits and transfer eligible credits to Singapore. Detailed project approval procedures and eligible methodologies are expected to be announced later.
Key Overview
- Article 6: The agreement establishes cooperation between Vietnam and Singapore under the Paris Agreement.
- Bilateral framework: The pact provides a legal structure for carbon credit collaboration.
- Carbon projects: Vietnamese organisations and businesses can develop eligible emission reduction projects.
- International transfers: Qualifying carbon credits can be recognised and transferred to Singapore.
- Agreement signed: Vietnam and Singapore signed the agreement on 16 September 2025.
- Next steps: Authorities will provide details on project approval procedures and eligible methodologies.
Vietnam Approves Singapore Carbon Credit Agreement
The Vietnamese Government has approved an implementation agreement with Singapore to strengthen bilateral cooperation on carbon credits under Article 6 of the Paris Agreement.
The approval was issued through Resolution 235/NQ-CP, marking an important step in establishing a framework for carbon market cooperation between the two countries.
The agreement is designed to create favourable conditions for Vietnamese organisations and businesses to develop greenhouse gas emission reduction projects and generate carbon credits that meet international standards.
Eligible credits could subsequently be recognised and transferred to Singapore, creating a potential pathway for Vietnamese projects to access international carbon market demand.
Bilateral Framework for Article 6 Cooperation
The agreement was signed by Vietnam and Singapore on September 16, 2025 and establishes a binding bilateral legal framework for cooperation in the international carbon market.
The arrangement reflects the two governments’ stated commitment to strengthening collaboration on carbon markets and contributing to global climate action.
Article 6 of the Paris Agreement provides mechanisms through which countries can cooperate in meeting their climate objectives, including through internationally transferred mitigation outcomes and other forms of carbon market cooperation.
For Vietnam, the bilateral agreement could provide a clearer framework for developing projects capable of generating internationally recognised carbon credits.
For Singapore, cooperation with countries that have significant potential for emission reduction projects can help expand access to high-quality carbon credits as it works towards its climate goals.
Opportunities for Vietnamese Carbon Projects
A central element of the agreement is its potential to support Vietnamese organisations and businesses developing greenhouse gas emission reduction projects.
The projects could generate carbon credits that meet the standards required under the bilateral framework.
Once eligible credits receive the necessary recognition and approvals, they could be transferred to Singapore.
This could create new opportunities for investment in emissions reduction activities in Vietnam while connecting local projects to international carbon markets.
However, the agreement does not automatically make every Vietnamese carbon credit eligible for transfer. Projects will need to meet the requirements and methodologies established under the implementation framework.
Project Approval Rules Still to Come
The Vietnamese Government said detailed information on the approval process for carbon credit projects and the list of eligible methodologies will be announced in the coming period.
These details will be important for businesses, project developers and investors seeking to participate in the bilateral carbon market.
The approval procedures are expected to determine how projects are assessed and what requirements they must meet before carbon credits can be recognised and transferred to Singapore.
The eligible methodologies will also determine the types of emission reduction activities that can participate under the framework.
Until these details are released, the precise scale and range of projects that could benefit from the agreement remain unclear.
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Vietnam’s Growing Role in International Carbon Markets
The agreement strengthens Vietnam’s efforts to participate more actively in international carbon markets.
A clear bilateral framework can provide greater certainty for businesses considering investments in carbon reduction projects, particularly where projects require access to international buyers or financing.
It also provides a structure for cooperation between government authorities, project developers and market participants.
For Vietnam, developing internationally recognised carbon credits could potentially create additional sources of climate finance while supporting domestic emissions reduction efforts.
The agreement also demonstrates how bilateral arrangements can be used to operationalise Paris Agreement Article 6 cooperation between countries.
Implications for Singapore
Singapore has been developing international carbon market partnerships as part of its broader approach to climate action.
The Vietnam agreement could give Singapore access to additional carbon credit supply while establishing a structured process for recognising and transferring eligible credits.
For Vietnamese project developers, Singapore could therefore represent an important potential market for qualifying carbon credits.
The effectiveness of the arrangement will ultimately depend on the quality of projects, transparency of the approval process and the environmental integrity of the credits generated.
Outlook
Vietnam’s approval of the agreement with Singapore represents a significant step in strengthening Article 6 carbon market cooperation between the two countries.
The bilateral framework could help Vietnamese organisations develop emission reduction projects, generate internationally recognised carbon credits and access Singapore’s carbon market.
The next major step will be the publication of detailed project approval procedures and eligible methodologies. These rules will provide greater clarity for businesses and investors and determine how the agreement operates in practice.
If implemented effectively, the partnership could support climate finance, encourage new emissions reduction projects and strengthen Vietnam’s participation in international carbon markets.
FAQs
1. What is the Vietnam-Singapore carbon credit agreement?
It is a bilateral agreement establishing a legal framework for cooperation between Vietnam and Singapore on carbon credits under Article 6 of the Paris Agreement.
2. What opportunities does the agreement create for Vietnam?
It enables Vietnamese organisations and businesses to develop greenhouse gas emission reduction projects, generate carbon credits meeting international standards and potentially transfer eligible credits to Singapore.
3. When was the agreement signed?
Vietnam and Singapore signed the Implementation Agreement on 16 September 2025. Vietnam subsequently approved the agreement through Resolution 235/NQ-CP.
4. What happens next?
Vietnamese authorities are expected to announce the carbon credit project approval process and eligible methodologies, which will provide further details on how projects can participate under the agreement.
Sources: Vietnam Law & Legal Forum, Vietnam News, Vietnam+ (VietnamPlus)
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