MANILA — The governments of the Philippines and Singapore are exploring a potential partnership in carbon credits trading.
According to Philippines News Agency, statements made by Singapore Foreign Minister Vivian Balakrishnan during his visit to the Philippines. Speaking at a joint press conference at Sofitel Manila, Balakrishnan announced plans to establish a working group to create a framework for trading carbon credits in compliance with the Paris Agreement. This framework aims to foster economic growth in the Philippines and expand Singaporean businesses' access to carbon credits.
During his discussions with Philippine Foreign Affairs Secretary Enrique Manalo, Balakrishnan expressed optimism about the mutual benefits of such cooperation, highlighting the significant potential in the Philippines for generating carbon credits, which are crucial for companies and individuals looking to offset their greenhouse gas emissions. The United Nations Climate Change has defined one tradable carbon credit as equivalent to one tonne of carbon dioxide or a comparable amount of another greenhouse gas reduced.
Furthermore, Balakrishnan outlined broader ambitions for enhancing economic ties between the two nations, including expanded energy cooperation at both bilateral and regional levels. He referred to existing power integration projects among ASEAN countries and proposed similar cooperative efforts involving the Philippines, Indonesia, and Malaysia, which could lead to significant regional power integration.
In addition to energy and environmental initiatives, the Singaporean Foreign Minister mentioned other areas for future collaboration, such as the green economy, smart and sustainable infrastructure, innovation, artificial intelligence, and startups. He noted the strong confidence of Singaporean businesses in the Philippine market, evidenced by substantial investments across multiple sectors, including real estate, hospitality, telecommunications, transport, and logistics.
This visit by Balakrishnan marks the 55th anniversary of diplomatic relations between Singapore and the Philippines and follows the recent 6th Informal Consultations on the Philippines-Singapore Action Plan held in February 2024.