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Singapore is seeking carbon credits from Vietnam and other Southeast Asian countries under Article 6.2 of the Paris Agreement. (Photo: iStock)
Singapore’s push to establish bilateral cooperation under Article 6.2 of the Paris Agreement across Southeast Asia is moving from agreements on paper toward implementation, with Vietnam emerging as a key part of that effort in August.
Singapore and Vietnam signed an Implementation Agreement (IA) on carbon credit cooperation in September 2025. Under the agreement, authorized emissions reduction projects in Vietnam can generate internationally transferred mitigation outcomes (ITMOs) for transfer. After nearly a year of domestic procedures, the Vietnamese government formally approved the agreement on Aug. 14, 2026, moving bilateral carbon cooperation into the implementation stage.
The next question is how many carbon credits Vietnam can supply that meet Article 6.2 requirements, and how it should approach its role as a potential supplier. The answers will help determine the potential scale and future direction of this cross-border carbon market cooperation.
Unlock the full article to explore three key takeaways:
- Singapore needs roughly 2.51 MtCO₂e in ITMOs yearly (2021–2030) to close its NDC gap.
- Corporate ICC demand could reach approximately 1.94 MtCO₂e/year under the 5% carbon-tax cap.
- As of Aug 14, 2026, zero Vietnam projects held formal Article 6.2 authorization.