Singapore, Laos ink pacts on education, carbon credits

Singapore and Laos inked a carbon credits deal on 9 July, paving the way for bilateral trade in the emerging area and deepening a 50-year friendship between the two nations.

The new agreement “opens yet another new frontier of cooperation”, said Prime Minister Lawrence Wong during a lunch hosted for Lao Prime Minister Sonexay Siphandone on his first official visit to Singapore since taking office in December 2022.

“Singapore looks forward to working closely with Laos to conclude the legally binding Implementation Agreement on carbon credits collaboration, which will further connect our countries in mutually beneficial ways,” said PM Wong, addressing a room of delegates from both countries at the Conrad Centennial Singapore.

The deal sets out a bilateral framework for the international transfer of correspondingly adjusted carbon credits, as well as the exchange of best practices and knowledge on carbon market mechanisms, said the Ministry of Trade and Industry.

It is aligned with Article 6 of the Paris Agreement, an international treaty on climate change adopted in 2015. The article allows countries to cooperate to achieve emission targets and to tackle climate change, while also unlocking financial support for developing countries.

“It will help us to achieve our climate targets, facilitate investments, create jobs, promote sustainable development, and encourage the deployment of clean technology,” said PM Wong.
 

Dr Sonexay is in Singapore for a day. Earlier in the day, he was received at a ceremonial welcome by PM Wong at Parliament House – instead of the Istana, where such official visits are typically hosted, as parts of the Istana are currently undergoing major restoration works.

At Parliament House, the two prime ministers witnessed the inking of the memorandum of understanding (MOU) related to carbon credits collaboration. It was signed by Minister for Sustainability and the Environment Grace Fu and Lao Minister of Natural Resources and Environment Bounkham Vorachit.

The two countries also work together in other ways for the green economy.

In June 2022, Singapore started importing up to 100 MW of renewable hydropower energy from Laos – one of Asia’s largest exporters of hydroelectricity – through Thailand and Malaysia, via existing interconnections.

This is part of a cross-country effort called the Lao People’s Democratic Republic-Thailand-Malaysia-Singapore Power Integration Project, or LTMS-PIP.
 

The project will also lay the foundation for an ASEAN Power Grid, which will deepen energy connectivity and strengthen energy resilience in the region, noted PM Wong.

He added that such cooperation on renewable energy is an example of how the countries can “translate the challenges of geography into mutually beneficial opportunities”.

“We look forward to the enhancement and expansion of the LTMS-PIP into its second phase, which will also be in line with Laos’ plans to become the ‘Battery of ASEAN’,” said PM Wong.

In a speech at the lunch, Dr Sonexay reaffirmed Laos’ commitment to the countries’ shared ties, which he said “have been nurtured and cherished by our predecessors over the last 50 years”.
 

He said that both countries have agreed to continue deepening cooperation in areas including promoting clean energy under the LTMS-PIP. He said Laos will also facilitate the expansion of the power grid to supply energy to Singapore and ensure energy security.

Other areas of cooperation discussed included using food supply as a means to increase trade and investment, as well as new facets such as public health and banking, said Dr Sonexay.

Separately, an MOU on education cooperation, first signed in 2018, was also renewed at Parliament House.

The MOU, signed by Education Minister Chan Chun Sing and Lao Minister for Education and Sports Phout Simmalavong, enhances cooperation in areas such as student exchanges, information and best practice exchanges, as well as academic scholarship opportunities.

PM Wong said it will forge closer bonds between the young people of the two countries, “paving the way for our relations to flourish over the next generation”.

“Singaporeans are interested in doing more with Laos,” he added.

Citing examples such as Singaporean student groups visiting Laos every year for community projects, and businesses exploring opportunities in sectors like logistics and tourism, PM Wong said that such cooperation “is testament to our strong people-to-people ties”.
 

In 2024, Singapore celebrates the 50th anniversary of bilateral relations with Laos, the current chair of ASEAN.

PM Wong reiterated the Republic’s full support for Laos’ ASEAN chairmanship, including via the Singapore-Laos Enhanced Cooperation Programme, where Laos’ socioeconomic development goals are supported through ongoing capacity-building programmes and training.

“I also look forward to visiting Laos again later this year for the ASEAN Summits,” he said.

The 44th ASEAN Summits will be held in Vientiane, Laos, in early October.

Dr Sonexay also called on President Tharman Shanmugaratnam and met Senior Minister Lee Hsien Loong at the Istana on 9 July.

Both SM Lee and President Tharman affirmed the growing ties between the countries and the emerging areas of cooperation.

Besides exchanging views on regional and international developments, SM Lee and Dr Sonexay also noted the progress made in bilateral relations, the Ministry of Foreign Affairs (MFA) said in a statement.

Separately, Dr Sonexay and Mr Tharman spoke about ways to continue nurturing people-to-people ties, which are the foundation of bilateral cooperation, said MFA.

“In a world which has to move to clean energy, and where rare earths too are in increasing demand, Laos’ natural assets will now also be of economic benefit,” wrote Mr Tharman in a Facebook post.

Noting that 40 per cent of Laos is covered in forests, he said that the Southeast Asian country has significant potential to develop carbon credits as a new source of funding.

Dr Sonexay’s official visit concluded at the National Orchid Garden where a new orchid hybrid, the Dendrobium Sonexay Siphandone, was named in his honour.
 

Source: The Straits Times ©️ SPH Media Limited. Permission required for reproduction.