Singapore's National Climate Change Secretariat (NCCS) stated on March 21 that the country has signed a Memorandum of Understanding (MoU) with Indonesia on cooperation in carbon pricing, climate change, and sustainability.
On March 21, Teo Chee Hean, Singapore's Senior Minister and Coordinating Minister for National Security, and Luhut Binsar Pandjaitan, Indonesia's Coordinating Minister for Maritime Affairs and Investment, signed a MoU, following which the two nations will collaborate on four key areas, including carbon pricing and market, nature-based solutions and ecosystem-based approach, clean technology and solutions, and green and blended finance.
This climate change partnership came after the Singapore-Indonesia Leaders' Retreat held in January.
Singapore is currently the center of commodity trading in Asia, while Indonesia is one of the largest carbon credit suppliers in the region. The MoU is expected to allow the two countries to set up projects that boost carbon trading in the region and thus help them achieve their emission reduction goals.
According to the agreement, both countries will develop a work plan that includes pilot projects, research collaborations, and technical exchanges. Funding solutions for carbon credit projects, carbon capture and storage, and the development of renewable energy alternatives to help the region decarbonize will also be explored.
Teo stated that Singapore will continue to seek chances to engage with like-minded regional and international partners to develop new solutions for a low-carbon, long-term future.
“As we create new green growth and job opportunities, such partnerships will help Singapore to meet our net-zero goal by or around mid-century,” he added.
Meanwhile, Indonesia, who holds the G20 Presidency this year, will form a Blended Finance Alliance under the framework, according to Luhut. The alliance will be a multilateral and transnational organization that will pool funds and projects related to climate change and the Sustainable Development Goals of the United Nations.