RRI.CO.ID, Jakarta - Indonesia and Singapore have strengthened cooperation on carbon market governance through two new agreements aimed at expanding climate finance, protecting ecosystems, and supporting Indonesia's transition toward a green economy.

The partnership is expected to enhance Indonesia's credibility in the global carbon market while creating new opportunities for sustainable investment and environmental protection.

The collaboration was formalized through the signing of two memorandums of understanding (MoUs) by Indonesian Minister of Environment Moh Jumhur Hidayat, Singaporean Minister for Sustainability and the Environment Grace Fu, and Singaporean Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong.

The agreements cover environmental protection cooperation and carbon credit collaboration under Article 6 of the Paris Agreement, which provides an international framework for countries to cooperate in reducing greenhouse gas emissions through carbon trading.

"This MoU serves as an umbrella framework that will be followed by more operational cooperation, ranging from climate change, waste management, air pollution control, and the circular economy to carbon governance," Minister Jumhur said on Monday, July 6, 2026, as quoted by Antara.

"We hope this collaboration will deliver tangible benefits for both countries while strengthening joint efforts to address global environmental challenges," he added.

He said the initiative aligns with President Prabowo Subianto's Asta Cita vision of advancing a green economic transformation.

Under the partnership, Indonesia and Singapore will strengthen operational cooperation through capacity building for government officials, joint research, technical expert exchanges, and pilot projects designed to improve environmental resilience across Southeast Asia.

The carbon credit collaboration under Article 6 also reflects Indonesia's commitment to establishing itself as a credible player in the international carbon trading system.

Gan Kim Yong said the agreement demonstrates both countries' commitment to developing a framework that channels climate finance into high-integrity projects, including forest conservation, coastal ecosystem restoration, and clean technology deployment.

"These projects will support livelihoods while delivering direct benefits to local communities and Indigenous peoples who are among those most affected by climate change," he said.

As the next step, both governments will negotiate an implementation agreement that will regulate authorization, verification, the transfer of Internationally Transferred Mitigation Outcomes (ITMOs), and corresponding adjustments to prevent double counting of emissions reductions.

Indonesia expects the partnership to strengthen international confidence in its carbon market while ensuring that carbon trading promotes climate justice, environmental integrity, and economic benefits for communities. ***