Singapore has released a detailed framework that allows governments to use credits issued by well-known voluntary carbon standards when meeting their Paris Agreement obligations. The protocol, developed jointly with Gold Standard and Verra, is one of the first attempts to create a unified operational structure for countries intending to participate in Article 6.2 cooperative approaches. It arrives at a time when many governments are struggling to close the gap between their current climate policies and their Nationally Determined Contributions, yet lack the resources to build national crediting systems from scratch.

Creating a Bridge Between Voluntary Credits and Paris Agreement Compliance

Under Article 6.2, countries can trade emission reductions across borders, but the rules governing authorisation, accounting, and transparency are highly complex. Many nations have found it difficult to implement the requirements due to limited administrative capacity and uncertainty over how voluntary market systems should interact with compliance obligations.

Singapore’s new protocol provides a consistent governance structure that countries can adopt instead of designing their own systems. It outlines how national authorities should work with independent standard setters, describes the process for approving mitigation outcomes, and clarifies how corresponding adjustments must be made. It also introduces a unified labelling system within registries so that the intended use of each credit is transparent. The aim is to avoid confusion between credits eligible for NDC compliance and those reserved for voluntary corporate uses.

For governments with limited resources, this enables them to participate in Article 6 cooperation far more quickly. For project developers and investors, it introduces predictability that has been missing from early Article 6 activity.

Developed Through Two Years of Negotiation and Global Consultation

The concept was introduced at COP28 and refined throughout 2024 through technical consultations and intergovernmental discussions. Draft guidelines were circulated before COP29 in Baku, where member states formally adopted the Article 6.2 rulebook after years of negotiation. Gold Standard, Verra, national climate agencies and a range of public institutions contributed to aligning the protocol with the new rules.

The final guidance reflects consensus on several core requirements. It details how mitigation outcomes must be tracked, how data flows should be maintained between national authorities and voluntary standards, and how transfers and retirements must be reported to the UNFCCC to ensure transparency. By codifying these processes in a single document, the protocol provides a common reference point for countries evaluating participation in international carbon trading.

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Pilots Planned for 2025 to Test the Framework in Real Transactions

The next phase will involve real-world trials. Singapore, Gold Standard and Verra will work with interested governments in 2025 to test registry labelling, reporting formats and the coordination required between ministries and private standard setters. These pilots will be critical for assessing how the protocol functions when applied to live project pipelines and cross-border transfers.

Project partners are also preparing a longer-term governance model. Future updates may introduce more detailed identifiers for internationally transferred mitigation outcomes, rules for managing the share of proceeds contributions, and agreed methods for ensuring overall mitigation of global emissions. A harmonised data protocol, which would require all participants to report the same core information fields, is also being considered to improve transparency.

These practical tests will reveal how countries interpret their obligations under the Article 6.2 rulebook and whether voluntary systems can support compliance-quality reporting without adding administrative burden.

Implications for Companies and Investors Navigating Carbon Markets

The protocol offers a clearer picture of how voluntary and compliance markets may converge over time. Governments pursuing Article 6 cooperation will likely lean on the same crediting programmes that supply corporate buyers. This creates opportunities for more consistent quality standards but may also reshape how voluntary carbon credits are authorised and retired.

As national authorities begin to issue corresponding adjustments for compliance use, companies will need to follow how these decisions affect voluntary claims. Credits authorised for NDC purposes cannot be simultaneously claimed as corporate reductions, and the protocol’s labelling system is designed to prevent misinterpretation. Organisations using offsets within their net-zero strategies will need to watch these developments closely to understand how their portfolios may be affected.

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A Practical Step Toward a More Coherent Global Carbon Market

The new protocol does not resolve all the political and technical challenges associated with Article 6.2, but it provides a working blueprint to help countries participate in international carbon cooperation with greater consistency and integrity. Its success will depend on adoption. If many governments follow this structure, the world could move toward a more harmonised carbon market where voluntary and compliance systems interconnect more clearly. If uptake is limited, fragmented national approaches could continue to hinder liquidity and weaken trust. For now, Singapore’s initiative, supported by two of the world’s leading carbon standards, marks a significant effort to bring order to an emerging global marketplace. The next test will come as 2025 pilots begin to reveal how well the guidance performs in practice and how fast countries can integrate it into their climate cooperation strategies.

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