On 04 September, 2026, Singapore and Lao PDR signed an Implementation Agreement on carbon credits collaboration under Article 6 of the Paris Agreement. The Implementation Agreement was signed between H.E. Ms. Grace Fu, Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations and H.E. Dr. Linkham Douangsavanh, the Lao PDR Minister of Agriculture and Environment (MAE).

Through the signing of the Implementation Agreement, the countries have established a legally binding framework for the generation and transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement. This milestone opens a critical market for project developers who are interested in developing carbon projects aligned with the growing carbon market ecosystem in Singapore.

The Global Green Growth Institute (GGGI) has served as the technical advisers to the Lao PDR Ministry of Agriculture and Environment (MAE) in supporting this process, and ensuring the Implementation Agreement is aligned with the Carbon Credit Decree and relevant national practices in Lao PDR.

Reflecting on this achievement, GGGI Lao PDR Country Representative Dagmar Zwebe notes, “GGGI is honored to have had the opportunity to support the government of Lao PDR in unlocking this market for carbon trading. This is an incredible example of how South-South cooperation at the ASEAN level can unlock investment flows for climate action.”

Mr. Khamsene OUNEKHAM, Director General of the Department of Environment (MAE), emphasized, “The signing of this Implementation Agreement marks a transformative step forward in our shared pursuit of a low-carbon, climate-resilient future. For Lao PDR, this agreement is not only about carbon market access, it is a vital mechanism to attract sustainable investments, transfer clean technologies, and generate long-term socio-economic benefits for our people while advancing our national climate ambitions.”

“We remain deeply grateful to the technical teams from both countries and extend our sincere thanks to GGGI for their steadfast support in ensuring this agreement aligns seamlessly with Lao PDR’s national priorities and regulatory frameworks.”

This historic milestone has been achieved by building on the Singapore-Laos Article 6 Memorandum of Understanding (MOU), signed on July 9, 2024, which establishes a framework for both countries to collaborate on the international transfer of carbon credits.

GGGI has long-standing expertise and experience in carbon market development. In Lao PDR, GGGI, with financial support from Australia’s Department of Foreign Affairs and Trade (DFAT), is implementing the Program for Open and Sustainable Carbon Markets in Lao PDR. This initiative aims to align carbon policies with Nationally Determined Contributions (NDC) targets and the Paris Agreement by building market infrastructure, institutional capacity, and private sector pipelines.

Meanwhile, Singapore is the first Asian country to contribute to GGGI’s Carbon Transaction Facility (CTF), joining the United Kingdom, New Zealand, Norway, and Sweden, which brings total commitments to over USD $200 million.