Bangladesh, Singapore sign MoU on carbon market cooperation

Bangladesh and Singapore have signed a memorandum of understanding (MoU) to strengthen cooperation in international carbon markets, unlock climate financing opportunities and promote joint initiatives to reduce greenhouse gas emissions.

The agreement was signed on Saturday at the Singapore Pavilion during the 31st United Nations Climate Change Conference (COP31) in Antalya, Turkiye.

State Minister for Environment, Forest and Climate Change Sheikh Faridul Islam signed the MoU on behalf of Bangladesh, while Melvin Ong, secretary of Singapore's Ministry of Sustainability and the Environment, signed for his country.

The agreement aims to facilitate Bangladesh's participation in international carbon markets under Article 6 of the Paris Agreement, attract environmentally sustainable investments and support the implementation of the country's Nationally Determined Contribution (NDC 3.0).

Speaking at the signing ceremony, Sheikh Faridul Islam said the partnership would open up new opportunities for carbon financing, help develop high-quality and transparent carbon markets and support Bangladesh's climate commitments.

He said Bangladesh was committed to working closely with Singapore to advance sustainable development, achieve its climate goals and strengthen global climate action.

Under the MoU, the two countries will exchange information, knowledge and experience relating to carbon credits and explore cooperation on greenhouse gas emission reduction projects based on mutual interests and benefits.

The partnership is expected to help develop internationally recognised carbon markets in Bangladesh, facilitate the transfer of climate-friendly technologies and attract greater private sector investment.

It is also expected to create opportunities for international climate finance and support the country's transition towards sustainable, low-carbon development.

As a follow-up to the MoU, Bangladesh and Singapore are expected to sign an implementation agreement at COP32, scheduled to be held in Ethiopia next year. The agreement will further establish the institutional framework and practical arrangements for bilateral cooperation under Article 6 of the Paris Agreement.