May 28, 2024
Singapore Widens its Pool of Carbon Credits to Offset Emissions
Bloomberg News
,![<p>Starting this year, firms in Singapore are subject to a carbon tax, set at S$25 ($18.56) per ton of carbon dioxide-equivalent.</p>, Bloomberg <p>Starting this year, firms in Singapore are subject to a carbon tax, set at S$25 ($18.56) per ton of carbon dioxide-equivalent.</p>](/polopoly_fs/1.2077982.1716903860!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_620/p-starting-this-year-firms-in-singapore-are-subject-to-a-carbon-tax-set-at-s-25-18-56-per-ton-of-carbon-dioxide-equivalent-p.jpg)
(Bloomberg) -- Companies in Singapore can tap a larger pool of carbon credits to offset up to 5% of their taxable emissions after the city-state signed a bilateral agreement with Ghana.
Ghana is the second country after Papua New Guinea to strike a partnership with Singapore on carbon credits cooperation, according to a statement from the Prime Minister’s Office.
Starting this year, firms in Singapore are subject to a carbon tax, set at S$25 ($18.56) per ton of carbon dioxide-equivalent. Access to carbon credits generated abroad will help firms in the city-state offset taxable emissions and meet their climate goals.
The agreement is aligned with Article 6 of the Paris accord, which sets out a market-based mechanism that regulates and adds transparency to the global transfer of carbon credits.
Under the partnership, developers of eligible projects must contribute 5% of their share of proceeds from authorized carbon credits toward climate adaption in Ghana.
Separately, Ghana also signed a carbon credit transfer agreement with Sweden, according to state-owned Ghana News Agency.
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