Singapore and Malawi have signed a new agreement to develop carbon credit cooperation under Article 6 of the Paris Agreement, setting the stage for the two countries to build a pipeline of internationally transferrable mitigation outcomes while allowing Singapore’s carbon-taxed companies to offset up to five percent of their emissions. The memorandum of understanding, signed on 20 November on the sidelines of the COP30 climate summit, sets out how the governments will work toward a legally binding implementation arrangement that defines how credits are generated, verified and traded.
Read also: Malawi launches world’s first AI-verified paris agreement platform at COP30
The agreement comes at a moment when international carbon markets are shifting from broad political ambition to more detailed operational rules.
For Malawi, the cooperation promises access to performance-based climate finance for projects in areas such as forest conservation, renewable energy, sustainable agriculture and community resilience, sectors where the country’s development plans and climate priorities intersect.
For Singapore, the partnership adds to a growing network of countries through which it can source high-integrity credits for its domestic carbon tax system, which began allowing regulated emitters to use approved international credits for a portion of their compliance obligations.
The framework outlined in the MoU will guide the selection of mitigation activities that meet Article 6.2 requirements while advancing each country’s nationally determined contributions. The focus is on projects capable of producing verifiable emissions reductions as well as local co-benefits, such as watershed protection, improved access to clean energy, and jobs linked to sustainable land management. These aspects are becoming increasingly important as international attention centers on how Article 6 arrangements can deliver both climate ambition and community-level gains.
Singapore’s sustainability minister, Grace Fu, noted during the signing that the partnership aims to demonstrate what credible cooperation can look like under evolving global rules. She emphasized that high-quality credits must contribute to real climate outcomes while supporting communities that host the underlying projects. Her comments reflect a broader concern across the voluntary and compliance carbon markets that integrity, both environmental and social, must remain central as countries scale bilateral Article 6 agreements.
Singapore has been steadily building this regional and international Article 6 network, having now signed MoUs with more than ten governments. In September, it expanded its credit portfolio with a $76 million purchase of nature-based credits drawn from projects in Ghana, Peru and Paraguay, securing more than two million tones of mitigation outcomes developed under existing cooperation frameworks with those countries. For Singapore, the diversification of supply sources offers an added measure of stability as debates over market rules continue at the global level.
Malawi’s involvement signals the increasing interest among lower-income countries in shaping Article 6 markets in a way that aligns with national development priorities. The country’s forests, smallholder farms and off-grid communities represent both emissions-reduction potential and opportunities for climate-resilient development, but accessing finance at scale has been difficult.
Bilateral Article 6 agreements offer a route to performance-based payments structured around measurable outcomes, which could support long-term programmes rather than short project cycles. As Malawi refines its own climate governance systems, the partnership opens space for capacity building around monitoring, reporting and community benefit-sharing arrangements.
Market observers note that much depends on how quickly the two countries can translate the MoU into a detailed implementation agreement. Corresponding adjustments, a key accounting requirement under Article 6.2, remain a central concern for investors and carbon buyers, who are tracking how countries plan to handle double-counting risks.
Equally important are the mechanisms for ensuring that communities hosting carbon projects receive a fair share of the benefits, an issue that has become more visible following concerns raised in several voluntary market programmes across Africa and Latin America.
The Singapore–Malawi partnership is unfolding as carbon market discussions intensify at COP30, where negotiators are attempting to finalize guidance that countries must follow when transferring mitigation outcomes internationally. Even as gaps remain in the global rulebook, bilateral deals such as this one show how governments are choosing to move ahead.
Countries that operationalize Article 6 early may end up shaping not only market norms but also the expectations of investors, financial institutions and local communities participating in future mitigation activities.
Read also: CMAS 2025 publishes post-event report detailing Africa’s carbon market growth and COP30 roadmap
As both governments begin work on the next phase; the legally binding implementation agreement, the outcome will be closely studied by other African nations exploring similar pathways.
Engage with us on LinkedIn: Africa Sustainability Matters
