Singapore and Mongolia will begin accepting applications for carbon credit projects on 30 October under a bilateral agreement signed in 2025.

🌏 Mongolia Joins Singapore’s Carbon Credit Network

Mongolia is the 6th country where Singapore has opened applications for carbon credit projects, following Ghana, Bhutan, Peru, Rwanda and Thailand. Announced by Minister of State Foo Cexiang at the Mongolia-Singapore Business Forum on 8 October, the scheme aligns with Article 6 of the Paris Agreement. Eligible credits may allow Singapore’s carbon-tax-liable companies to offset up to 5% of their taxable emissions.

⚡ What Projects Could Qualify?

The agreement covers 49 methodologies across four programmes: Gold Standard, Verra, the Global Carbon Council and ART. Eligible projects include renewable energy, cleaner heating, grassland management, livestock methane reduction and manure-to-biogas systems. Both governments will review applications on a rolling basis. Application details.

• 💰 What Could Mongolia Gain? Singapore’s carbon tax reached S$45 per tonne in 2026 and
• 👀 When the deal was signed in 2025, Singapore also committed to directing an amount equivalent to 5% of proceeds from authorised credits towards climate adaptation in Mongolia.

⚠️ The Catch

Projects need approval from both governments, independent verification and upfront funding. Credits must reflect emissions reductions achieved between 2021 and 2030. Each tonne transferred to Singapore is also subtracted from Mongolia’s emissions-reduction accounting, so it cannot count towards Mongolia’s own climate target. Singapore will cancel 2% of authorised credits at issuance, preventing their use towards either country’s climate targets.

🔎 The Bigger Picture

The deal could turn Mongolia’s emissions-reduction potential into international investment, but the benefits will depend on projects securing financing, delivering verified results and sharing value with local communities.