Singapore and Verra Sign MOU to Support National Carbon Tax
The National Environment Agency (NEA)of Singapore and Verra have signed an MOU that is aimed at enabling Singapore-based companies to use eligible Verified Carbon Units (VCUs) – carbon credits issued by Verra’s Verified Carbon Standard (VCS) Program – to meet part of their carbon tax obligations in Singapore. The MOU is also part of Singapore’s efforts to help operationalize Article 6 of the Paris Agreement.
The NEA administers Singapore’s Carbon Pricing Act under which carbon tax-liable facilities can use high-quality international carbon credits to offset up to 5 percent of their taxable emissions from 2024.
NEA and Verra will develop and implement transaction procedures consistent with Article 6 of the Paris Agreement that enable Singapore-based companies to use eligible VCUs to fulfill a portion of their compliance obligations under the Singapore carbon tax regulations, including the respective Corresponding Adjustments (CAs) by host countries. Under the MOU, NEA and Verra will ensure that these procedures protect the integrity, credibility, and transparency of the credits.
“At the COP in Glasgow the infrastructure was put in place for the voluntary carbon market to support countries in meeting their Nationally Determined Contributions, and NEA and Verra are taking on the important work to explore practical paths for implementing this possibility,” said Robin Rix, Chief Legal, Policy, and Markets Officer of Verra.
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