Indonesia, Singapore deepen fair carbon market partnership

Jakarta (ANTARA) - Indonesia and Singapore on Monday signed two agreements to strengthen fair and high-integrity carbon market governance and expand environmental cooperation, reinforcing climate action under Article 6 of the Paris Agreement.

The agreements were signed by Indonesia's Minister of Environment/Head of the Environmental Control Agency (BPLH) Moh Jumhur Hidayat, Singapore's Minister for Sustainability and the Environment Grace Fu, and Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong.

The first memorandum of understanding (MoU) establishes a broader framework for environmental protection cooperation, while the second creates a foundation for bilateral collaboration on carbon credits under Article 6 of the Paris Agreement.

The partnership aims to strengthen climate change mitigation while ensuring carbon markets deliver environmental integrity, climate justice, and tangible benefits for local communities.

"This MoU serves as an umbrella framework that will be followed by more operational cooperation, ranging from climate change, waste management, air pollution control, and the circular economy to carbon governance," Jumhur said.

"We hope this cooperation will deliver tangible benefits for both countries while strengthening our joint efforts to address global environmental challenges," he added.

Jumhur said the initiative aligns with President Prabowo Subianto's Asta Cita vision of advancing Indonesia's green economic transformation.

He said the two agreements would provide an essential foundation for protecting cross-border ecosystems while accelerating climate mitigation through fair and high-integrity carbon governance.

Under the agreements, Indonesia and Singapore will strengthen institutional capacity through civil servant training, joint research, technical expert exchanges, and pilot projects to improve environmental resilience across Southeast Asia.

The carbon credit partnership also reflects Indonesia's strategy to strengthen its position in the international carbon market through credible implementation of Article 6 mechanisms.

Gan said the agreement demonstrates both countries' commitment to mobilizing climate finance toward projects with strong environmental and social integrity.

"This memorandum of understanding reflects Singapore's and Indonesia's determination to develop a framework for channeling climate finance into high-integrity projects, from forest conservation and coastal ecosystem restoration to clean technology solutions that reduce emissions while creating new economic opportunities," Gan said.

He said the projects are expected to support livelihoods while providing direct benefits to local communities and Indigenous peoples most affected by climate change.

Both governments will negotiate an implementing agreement to establish operational rules covering authorization, verification, transfers of Internationally Transferred Mitigation Outcomes (ITMOs), and corresponding adjustments.

The framework is intended to prevent double counting of greenhouse gas emission reductions while ensuring transparency and credibility in bilateral carbon transactions.

For Indonesia, the agreements will strengthen international confidence in the country's carbon pricing framework while ensuring carbon markets promote equitable economic benefits alongside climate action.

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Translator: Prisca Triferna Violleta, Martha Herlinawati Siman

Editor: Primayanti

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