Singapore and Mongolia are moving from a framework agreement on carbon credits to accepting project applications, according to a speech by Minister of State for Energy, Trade and Industry Foo Cexiang at the Mongolia-Singapore Business Forum. The minister told the forum that the two countries will begin accepting applications for carbon credit projects under their Implementation Agreement from 30 October 2026. Foo said Mongolia adopted its first Climate Change Law in July, establishing a domestic legal framework for climate action that covers carbon markets and climate finance. He said this provides a foundation for the two countries to operationalise their Implementation Agreement on carbon credits cooperation under Article 6 of the Paris Agreement, which creates a framework for collaboration on mitigation projects that support climate goals and sustainable development. The minister also noted that Mongolia adopted its Law on Economic Freedom in July alongside reforms to its investment framework. According to Foo, those reforms strengthened investor protection, improved dispute-resolution mechanisms, streamlined regulatory requirements and expanded market access for foreign investors, including in renewable energy, data centres and artificial intelligence. Foo framed the forum around three elements he said would drive business ties: confidence, connections and conviction. On confidence, he said businesses invest when rules are clear, contracts are honoured and the operating environment remains stable enough for long-term decisions, which he described as especially important for clean energy, digital infrastructure and carbon markets. On connections, Foo said the Singapore Business Federation and the Mongolian National Chamber of Commerce and Industry were signing a Memorandum of Understanding at the forum to strengthen their partnership. He said he hoped the agreement would encourage businesses represented by both federations to seek like-minded partners, and that its value must extend beyond organising forums to creating partnerships, investments and opportunities. Foo said the Singapore Business Federation led a business mission to Mongolia in June involving Singapore companies in food and beverage, professional services, education and energy, and that the mission generated business leads which participating companies are pursuing. On conviction, Foo said governments can build confidence and chambers can build connections, but neither can invest capital, develop projects commercially or sign commercial agreements, which he said businesses must do. He described the two economies as complementary, with Mongolia holding natural resources, abundant land and renewable energy potential, while Singapore brings finance, professional services, technology, project development and access to global and regional markets. Foo said carbon markets are a promising area where these strengths converge, citing Mongolia's potential for mitigation projects including renewable energy and nature-based solutions, and Singapore's ecosystem of companies that can develop, finance and commercialise such projects amid demand for high-quality carbon credits. He said he was aware of a consortium of Singapore and Mongolian companies exploring nature-based carbon projects in Mongolia, with Singapore partners contributing project development and technical expertise and Mongolian partners bringing local knowledge, networks and on-the-ground capabilities. Foo also recalled that Singapore and Mongolia established diplomatic relations 56 years ago, and that then-Prime Minister Lee Hsien Loong became the first Singapore Prime Minister to make an Official Visit to Mongolia in 2016, when then-President Tsakhia Elbegdorj presented him with a Mongolian horse that Lee later named Bintang Temasek. Foo said the name combines the Malay word for star with the ancient name for Singapore, and that the horse remains a symbol of friendship between the two countries. He said the challenge now is to translate that friendship into tangible investments, projects and long-term partnerships, adding that governments will continue to build confidence while business communities strengthen connections and seize opportunities. 

Published Date:2026-10-08