Singapore  announced it has signed a memorandum of understanding (MOU) with the government of Mongolia for carbon credits.

The new agreement is the latest in a series of such contracts inked by Singapore with neighboring and distant countries and is a clear indicator of the nation’s determination to become a leader in the carbon trading space.

Under the agreement, Singapore and Mongolia will work towards identifying carbon projects that can yield high-quality carbon credits, as per Article 6 of the Paris Agreement.

To do this, both countries will create an interagency working group that will oversee the process of carbon crediting.

Minister for Sustainability and the Environment Grace Fu said in his statement: “Such cooperation is critical for countries to advance climate ambition and accelerate climate action.”