Singapore and Mongolia will open applications for carbon credit projects on October 30 under a bilateral implementation agreement, Singapore's Ministry of Energy, Trade and Industry and National Environment Agency said in a statement on Thursday.

The projects will generate carbon credits aligned with Article 6 of the Paris Agreement. Under Singapore's International Carbon Credit Framework, the credits may qualify for use by Singapore-based companies liable for carbon tax to offset up to 5% of their taxable emissions.

Interested parties may apply for authorization of eligible carbon credit projects in Mongolia. The two governments will review applications jointly on a rolling basis.

The agreement is Singapore's sixth bilateral implementation agreement under which Singapore has opened applications for carbon credit projects, following similar agreements with Ghana, Bhutan, Peru, Rwanda and Thailand.