Manila, May 1 -- The Philippines and Singapore have formally signed a landmark agreement creating a legal framework for the generation and transfer of carbon credits, the Singapore Embassy in Manila announced Thursday evening.

The embassy said project developers can soon leverage this deal to develop high-quality carbon credit projects that are aligned with Article 6 of the Paris Agreement.

Carbon credits are units obtained from entities that remove or reduce greenhouse gas emissions.

One tradable carbon credit equals one ton of carbon dioxide or the equivalent amount of a different greenhouse gas reduced.

The United Nations Climate Change said companies or individuals can purchase and use carbon credits to compensate for their greenh...