Vietnam approves Singapore Article 6 carbon credit agreement

Vietnam has approved an implementation agreement with Singapore under Article 6 of the Paris Agreement, marking a key step toward operationalizing bilateral carbon credit trading between the two countries.

In Resolution No. 235/NQ-CP, issued Aug. 14, the government approved the implementation agreement signed by Vietnam and Singapore in Hanoi on Sept. 16, 2025.

The Vietnamese Ministry of Foreign Affairs has been tasked with completing diplomatic procedures and notifying the agreement's entry into force, while the country's Ministry of Agriculture and Environment will lead domestic implementation, according to the resolution.

The agreement provides a legal framework for cooperation under Article 6 of the Paris Agreement, which allows countries to transfer internationally recognized emission reductions and carbon credits to help meet climate targets.

The framework is intended to enable Vietnamese organizations and companies to develop greenhouse gas emission reduction projects, generate carbon credits that meet international standards and transfer eligible credits to Singapore, the resolution said.

Singapore has been among the most active buyers of carbon credits in the emerging Article 6 market, pursuing bilateral agreements with several countries to secure high-quality offsets for use under its carbon tax regime.

"It will be interesting to see if they prioritize any specific sectors. At this point, there is much to know," said a Singapore-based market source.

The resolution itself does not contain detailed rules governing project approval, authorization procedures or credit issuance. Those operational details are expected to be set out through implementation arrangements and Vietnam's broader carbon market regulations.

The Platts Singapore‑eligible International Carbon Credits assessment closed at S$35.5/mtCO2e in the week to Aug. 13, up by S$2/mtCO2e. Platts is part of S&P Global Energy.

Singapore expects to receive its first letter of authorization from Ghana in the second half of the year, a senior government official said July 2.

A developer with projects in Ghana said they hope to sell credits above S$40/mtCO2e if Ghana is the sole country to secure the letter of authorization in 2026. Meanwhile, some buyers remained firm in their intention to maintain buying ideas in the S$30-S$35/mtCO2e range.

A Singapore-based trader provided indicative carbon credit values at S$35/mtCO2e, noting that buyers may not pay above S$40/mtCO2e.