Singapore and Australia have signed a green economy agreement with the aim of establishing “common rules and standards” that promote trade and environmental sustainability. Billed as the first such global trade pact, it encompasses various initiatives including cross-border clean energy trade and digital trading platforms.
Both countries have also established a technical working group to establish statistical measurements of the green economy, according to a joint statement released Tuesday by the Ministry of Trade and Industry (MTI) and the Ministry of Industry and Trade. Singapore’s Sustainability and Environment. The group will discuss the use of economic-environmental data to support policy decisions and reporting.
The Singapore-Australia Green Economy Agreement outlines principles and cooperation across seven key areas, including trade and investment, green finance and transformation, as well as clean energy, decarbonisation and technology. it spans 17 joint initiatives with the common aim of facilitating cooperation in emerging fields.
For example, under the trade agreement, Singapore and Australia will support small and medium enterprises (SMBs) in jointly developing green technologies as well as products and services. This will come in the form of grants and business matching efforts, where funds can be used to develop and commercialize products that promote the decarbonization of economic activities. .
The Memorandum of Understanding between the Australian Trade and Investment Commission and Enterprise Singapore will also aim to promote and support commitments between businesses in the green economy sectors. This is intended to promote bilateral trade and investment in the market through activities such as joint business missions and the promotion of green economic opportunities.
In addition, both countries will cooperate on environmental sustainability policies and plans related to ecolabelling. An agreement to be signed between the Environment Council of Singapore and Good Environmental Choice Australia will aim to establish mutual recognition and joint promotion of selected ecolabels, and build capacity in such program.
The two countries have also identified 372 environmental goods and 155 environmental services for which efforts will be made to reduce tariff and non-tariff trade barriers. Describing the two lists as “more ambitious” than existing lists established worldwide, Singapore said the lists were “incomplete” and would be periodically reviewed to keep them updated. with market developments and taking into account industry feedback.
Both countries will address non-tariff barriers as part of efforts to reduce costs for exporters in relevant markets as well as increase deployment and access to green and low-emission technologies.
There are also plans to work on a digital verification platform underpinned by Singapore’s TradeTrust framework, developed to facilitate exchange of digital commercial documents on systems. It includes an accreditation structure to certify technical applications in compliance with relevant laws.
The digital verification platform will seek to cut environmental costs through digital trade procedures and promote a paperless commercial environment. This initiative will lead both the new green economy pact and Singapore and Australia digital economy agreement signed in 2020.
The two countries will also identify opportunities for bilateral and international cooperation in standards, technical regulations, measurement and conformity assessment processes in the green economy fields. Efforts here will be aimed at cutting compliance costs for exporters of environmental goods through increased compatibility and interoperability.
There are also plans to establish a joint working group to develop an architecture for cross-border electricity trade and strengthen energy connectivity in the region. This would expand existing arrangements to include free trade agreements as appropriate.
Singapore and Australia are two open economies with extensive bilateral trade and investment links. Based on this solid foundation, we are building on this solid foundation, said Singapore’s Minister of Trade and Industry Gan Kim Yong. developed the green economy accord, an early agreement and pathfinder for rules and standards in promoting trade and environmental sustainability.
“The [agreement] Gan said it will reduce barriers to cross-border trade in clean energy as well as green trade and investment. “
Australia is Singapore’s 10th largest trading partner, while Singapore is Australia’s fifth largest trading partner.
Year 2020 Singapore-Australia Digital Economy Agreement covers several areas of cooperation, including cross-border data flows, digital payments, and artificial intelligence. Both countries in April 2022 also signed an agreement to facilitate trade and investment in their respective fintech sectors and foster relationships between policy officials and regulators.
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