Vietnam and Singapore link carbon markets under Paris Agreement, allowing Vietnamese credits to help Singapore meet its carbon tax goals.

Vietnam and Singapore have signed a carbon credit agreement under the Paris Agreement’s Article 6, enabling Vietnamese projects to generate internationally recognized carbon credits transferable to Singapore. The pact supports climate finance, clean energy, and sustainable agriculture, with Singapore committing 5% of credit transaction funds to Vietnam’s climate adaptation and canceling 2% of initial credits to ensure net emission reductions. It marks Singapore’s second Southeast Asian carbon market partnership after Thailand and allows Singaporean entities to use Vietnamese credits to meet carbon tax obligations, making Vietnam the ninth country eligible for Singapore’s carbon credit access.