In a momentous effort to address the urgent issue of climate change, Bhutan and Singapore have recently signed a virtual agreement on Carbon Credit. This groundbreaking partnership signifies the commitment of both nations to explore the development of carbon markets as a means to mitigate the impact of carbon emissions. Carbon credit, a financial tool used to counterbalance or offset carbon emissions produced by individuals, companies, or countries, will play a pivotal role in this collaboration. The agreement is set to enable Bhutan, renowned for its extensive forest cover, to leverage its natural resources by generating carbon credits for trading on the global market.
The Memorandum of Understanding (MoU) on carbon credit was signed by Singapore’s Minister for Trade and Industry, Gan Kim Yong, and Bhutan’s Minister for Energy and Natural Resources, Lyonpo Loknath Sharma.
This historic agreement marks Singapore’s first collaboration of its kind with a carbon-negative country, and it represents Bhutan’s inaugural MoU on Carbon Credit.
Simon Wong, Singapore’s Ambassador to Bhutan, emphasized the importance of bilateral cooperation between two small nations in the face of contemporary challenges. “Because we are such small countries, we need to work together to face the challenges of the day. We have worked in many different areas such as technical skilling, healthcare, agriculture products, and AI. So, we want to move forward in new areas. And carbon trading is one of them,” said Wong.
Over the following months, the governments of Singapore and Bhutan will collaborate to implement the provisions outlined in the agreement.
Simon Wong further elaborated, stating, “Once we find out what the key areas are, we can implement them after the signing of stage two. So, we hope that in six months, we can come and announce those concrete ideas.”
Specific details, including the financial aspects of the collaboration, will be thoroughly discussed in future meetings.
This joint effort is expected to yield mutual benefits for both countries. Singapore, as a global financial hub, will provide vital financial support to Bhutan, a nation blessed with abundant natural resources and a steadfast commitment to environmental conservation.