S'pore, Chile and NZ launch negotiations for green trade pact

It could include cooperation in areas like sustainable aviation fuel and carbon credits

- Ng Wei Kai

Singapore, Chile and New Zealand have launched negotiations for a green trade pact, which could include cooperation in areas like sustainable aviation fuel, carbon credits and renewable energy certificates.

Prime Minister Lawrence Wong, Chilean President Gabriel Boric and New Zealand Prime Minister Christopher Luxon announced this on Oct 31 on the sidelines of the Asia-Pacific Economic Cooperation (Apec) leaders' meeting in Gyeongju, South Korea.

Speaking at the launch held at Sono Calm Gyeongju hotel, PM Wong said the agreement will modernise trade and investment policies to support the flow of environmental goods and services.

"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," he said.

Known as the Green Economy Partnership Agreement (Gepa), it will also unlock new opportunities in the green economy for companies, and good jobs in these sectors.

It will lower barriers to trade while accelerating the green transition, he added.

Other potential areas of cooperation floated in earlier discussions include trade-related climate measures, which PM Wong said could be better aligned with policy goals to minimise trade disruptions.

He noted that in the past, growth and sustainability were often seen as competing priorities.

But technological breakthroughs have challenged this assumption, and demonstrated that growth and sustainability can be mutually reinforcing, PM Wong said.

"Trade can facilitate our collective green transition, by facilitating cross-border flows of the goods, services, technologies and finance that enable this," he said.