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Second Minister for Trade and Industry Dr Tan See Leng signed a Memorandum of Understanding (MOU) on Energy Cooperation with Vietnam Minister of Industry and Trade Ngyuen Hong Dien and an MOU on Carbon Credits Collaboration with Vietnam Minister of Natural Resources and Environment Dr Tran Hong Ha today, on the sidelines of President Halimah Yacob’s State Visit to the Socialist Republic of Vietnam from 16 to 20 October 2022.
The MOU on Energy Cooperation reaffirms Singapore and Vietnam’s shared commitment to support and facilitate our energy transition and covers several key areas such as (i) the development and financing of renewable energy, (ii) the development of interconnectors for increased grid resilience and stability and electricity trading, and (iii) research, development and deployment of low-carbon energy technologies and solutions such as hydrogen, ammonia, energy storage systems (ESS), smart grids and related infrastructure, as well as other areas of collaboration.
The MOU on Carbon Credits Collaboration is the first MOU to be signed between Singapore and an ASEAN Member State. The MOU signals
Singapore’s and Vietnam’s commitment to collaborate on carbon credit pilot projects would support both countries in meeting their climate targets. To implement the pilot projects, both countries will also develop modalities and procedures to enable the transfer of correspondingly adjusted carbon credits that are generated.
Minister Tan said, “Singapore and Vietnam are close partners, and are committed to supporting both our countries’ energy transition as well as regional decarbonisation. The MOU on Energy Cooperation will pave the way for greater cross-border electricity trade and the development and financing of low-carbon technologies. The MOU on Carbon Credits Collaboration underscores our shared commitment to work together on carbon credit pilot projects aligned to Article 6 of the Paris Agreement. We believe that international collaboration, such as that between Singapore and Vietnam, is critical in promoting global climate action to achieve the goals of the Paris Agreement.”