Singapore (VNA) - Singapore and Indonesia have signed a memorandum of understanding (MoU) on cooperation in carbon pricing, climate change, and sustainability, Singapore’s National Climate Change Secretariat (NCCS) announced on March 21.

Singaporean Senior Minister and Coordinating Minister for National Security Teo Chee Hean and Indonesia's Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan inked the MOU on March 21 to commence various collaborations on sustainability and climate change.

The agreement was developed following the Singapore-Indonesia Leaders' Retreat in January 2022.

Annual high-level ministerial meetings and an inter-agency working group involving senior government officials from both countries will commit to advancing the agreement's objectives.

A work plan, including pilot projects, research collaborations and technical exchanges, between both countries will be developed.

Both countries will also explore financing solutions in areas such as carbon credit projects, carbon capture and storage, and the development of renewable energy solutions to support regional decarbonisation.

Speaking on the sidelines of the signing, Teo said the MOU will create development opportunities and jobs.

Singapore will continue to seek opportunities to collaborate with like-minded regional and international partners to create new solutions for a decarbonised and sustainable future, he said.

"Such partnerships will enable Singapore to achieve our net-zero goal by or around mid-century, as we create and seize new green growth and job opportunities," added Teo, who also chairs the Inter-Ministerial Committee on Climate Change.

Meanwhile, Luhut said Indonesia will establish a Blended Finance Alliance under the Group of 20 (G-20) framework. The alliance will be a multilateral and international institution to pool funds and projects related to climate change and the United Nations' sustainable development goals./.