Thimphu [Bhutan], May 20 : In order to combat climate change, Bhutan and Singapore have signed a virtual agreement on Carbon Credit, indicating both nations' willingness to explore the development of carbon markets as a means to mitigate the impact of carbon emissions, Bhutan Live reported.
Carbon credit, a financial tool used to counterbalance or negate carbon emissions created by people, businesses, or governments, will be critical in this collaboration.
Bhutan, known for its considerable forest cover, will be able to harness its natural resources through the generation of carbon credits for trading on the world market under the terms of the agreement.
Singapore's Minister for Trade and Industry, Gan Kim Yong, and Bhutan's Minister for Energy and Natural Resources, Lyonpo Loknath Sharma, signed a Memorandum of Understanding (MoU) on carbon credit, according to Bhutan Live.
This historic deal is Singapore's first of its kind with a carbon-negative country, and it is Bhutan's first MoU on Carbon Credit.
Regarding the agreement, Singapore's Ambassador to Bhutan, Simon Wong said, "Once we find out what the key areas are, we can implement them after the signing of stage two. So, we hope that in six months, we can come and announce those concrete ideas," Bhutan Live reported.
In subsequent sessions, specifics, including the financial aspects of the collaboration, will be thoroughly examined. The governments of Singapore and Bhutan will work together in the next months to put the agreement's terms into effect, it said.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor