Bhutan cooking and heating project applies for authorisation under Singapore Article 6.2 deal

A combined clean cooking and space heating project in Bhutan has formally applied for authorisation under the Bhutan–Singapore Article 6.2 Implementation Agreement. It projects 621,583 tCO₂e of emission reductions over five years, or about 124,000 tonnes a year.

The agreement was signed on 28 February 2025 and was Singapore’s first with a carbon-negative country. Its process has three stages: an application form (Stage A), authorisation (Stage B) and ITMO issuance and transfer (Stage C). This project is now entering Stage A. Under the agreement, 5% of credits generated, along with corresponding adjustment fees set by Bhutan’s government, will go to climate adaptation.

The project appears to be one of four announced in March 2026 by Bhutan’s Department of Energy and Climate Change as the first concrete steps under the agreement. The Integrated Cooking and Space Heating Carbon Mitigation Programme combines efficient cooking and heating for urban and rural households. It sits alongside a nationwide induction cookstove initiative covering all 20 districts and two biogas projects.

Signals to watch

• From pipeline to authorisation: A formal application is the first measurable step toward ITMOs for Singapore. Watch how quickly the joint Stage B review is completed. That timeline will show how efficiently Singapore and Bhutan run the process, which matters to developers considering other Singapore host countries.
• Electrification-based cooking is different: Bhutan’s grid runs almost entirely on hydropower, so induction cooking and electric heating displace firewood and LPG with near-zero-emission power. This differs from biomass-stove projects and may face fewer of the integrity concerns around non-renewable biomass fractions. Methodology choice will still matter.
• Carbon-negative host, unusual accounting: Bhutan absorbs more carbon than it emits, so every corresponding adjustment eats into its net-negative status. The country’s corresponding adjustment fee and 5% adaptation share reflect the value it places on exported mitigation. Other hosts may follow this pricing approach.
• Demand channel to Singapore’s carbon tax: If authorised, the credits could serve Singapore’s government purchases and carbon tax-liable companies, which can offset up to 5% of their taxable emissions. Household-energy ITMOs with strong co-benefits could command a premium.
• Scale of the opportunity: About 124,000 tonnes a year is modest but meaningful for a small economy. Investors should track whether the other three announced projects follow quickly, which would set Bhutan’s annual ITMO potential.

Sources:

• The Star – Bhutan, Singapore launch four new climate projects
• The Bhutanese – Bhutan and Singapore advance carbon credit cooperation
• Allen & Gledhill – Singapore signs implementation agreement with Bhutan