Singapore, Chile and New Zealand to begin negotiations for green economy agreement

Geopolitical developments and climate commitments are reshaping business priorities, Singapore’s Ministry of Trade and Industry (MTI) said in a press release.

Trade strategies and environmental goals are becoming increasingly interconnected and companies are adapting to new regulations and changing demands, said MTI, adding that the shift to a low-carbon future creates challenges and opportunities.

WHAT THE NEGOTIATIONS ARE ABOUT 

Officials have recommended initial topics to be considered under the GEPA, including issues that have “grown in salience”, said Mr Wong.

He said sustainable aviation fuel can make a significant impact if widely adopted across borders, while carbon credits can be traded to support the net-zero transition.

Trade-related climate measures can also be better aligned with policy goals, he added.

“Our aim is to set common rules and standards around these topics, so that there will be coherence and common foundations in what we do. And by taking such actions, the GEPA can help to modernise trade and investment policies to support flows of environmental goods and services,” he said.

It will also unlock new opportunities in the green economy for Singapore companies, create good jobs in related sectors and lower barriers to trade while accelerating the green transition.

Mr Wong said Singapore, Chile and New Zealand may be small countries, but they have a proven track record of pioneering innovative agreements together.

He pointed out that the three countries started the Trans-Pacific Strategic Economic Partnership with Brunei, which later evolved into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

They also signed the first-of-its-kind Digital Economy Partnership Agreement.

“That continues to receive interest from other aspiring economies – a sign of the value which others see in it,” said Mr Wong. 

“Now, we are applying the same collaborative spirit to the green economy.”

He encouraged officials from the three countries to look beyond conventional approaches, embrace new ideas and draw on insights from the private sector. 

“I am confident that by joining hands, we can turn trade into a force for good, catalyse economic growth while doing our part for the environment and for global climate action,” he said.