Topic 9

Singapore-Australia Green
Economy Agreement

Written by: Pedro Manuel Ardila Armirola

23/04/2024
Introduction
The Singapore-Australia Green Economy Agreement (GEA), signed more than a year ago
on October 18, 2022, lays the groundwork for greater collaboration between Australia
and Singapore, two major countries whose main objective is to boost economic growth
while reducing emissions. It is a new type of agreement that combines trade, economic
and climate objectives. The most relevant aspects of this treaty are presented below.

Trade and investment

The trade and investment aspect of the Singapore-Australia Green Economy Agreement
(GEA) is fundamental to fostering sustainable economic growth between the two
countries, with its main objective being the promotion of Green Trade, as it seeks to
actively promote trade in goods and services that have a positive impact on the
environment. This includes clean technologies, products that are energy efficient and
those that contribute to the reduction of emissions. A crucial part of the agreement is
also to identify non-tariff barriers that may affect trade in these goods and services. This
may include regulations, standards or practices that limit trade. Once identified, the GEA
aims to work on reducing or eliminating these barriers to facilitate a freer flow of
environmental goods and services.

The agreement also seeks to attract investment in green technologies and renewable
energy projects, which may include incentives for companies investing in these areas. It
can therefore also assist in the development of new markets for environmental goods
and services, providing a platform for innovation and business growth.

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Standards and compliance
The Standards and Conformity section is crucial to ensure that traded goods and
services not only meet trade expectations, but also respect and promote environmental
sustainability. This treaty seeks to harmonize standards between Singapore and Australia
so that products and services can move more freely between the two countries, without
compromising environmental standards, and it is essential that products comply with
strict environmental regulations to ensure that trade does not have a negative impact on
the environment. The agreement encourages the use of green certifications that verify
that products and services meet certain environmental standards.

In addition, it promotes transparency in production processes and product traceability to

ensure that sustainable practices are maintained throughout supply chains. Part of the
process includes educating companies and the public about the importance of
environmental standards and how to comply with them.

The approach can act as a catalyst for innovation in developing new standards that
reflect best practices in sustainability, thus ensuring that trade between Singapore and
Australia is not only economically beneficial, but also environmentally responsible, which
is vital to the long-term success of the green economy.

Green and transition finance

The Green and Transition Finance component is a key component to support the
transition to a low-carbon and sustainable economy. They primarily develop green
finance taxonomies, which are classification systems that define what is considered a
sustainable or "green" investment. These taxonomies are fundamental to align financial
frameworks and ensure that investments effectively contribute to environmental
sustainability. This encourages investment in clean energy projects, such as solar, wind
and other forms of renewable energy, in both Australia and Singapore, thereby
promoting the use of sustainable financial instruments, such as green bonds and
sustainability loans, which provide capital for projects that have environmental or climate
benefits.

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Green finance initiatives under the GEA are designed to align with global objectives,
such as those of the Paris Agreement and the UN Sustainable Development Goals. They
can facilitate international cooperation in green finance, sharing best practices and
learning across countries and regions.

Carbon markets
Carbon markets are mechanisms for buying and selling carbon credits or permits. There is a need to
consider how Singapore and Australia can collaborate in implementing these markets to reduce
greenhouse gas emissions. Singapore and Australia can collaborate in identifying mutually beneficial
carbon credit projects. These projects can help both countries achieve their Nationally Determined
Contributions (NDCs) and meet climate change mitigation targets. It is important to ensure that
carbon credits generated are not counted twice (double counting). Cooperation between the two
countries can help establish transparent and reliable mechanisms to avoid this problem, as well as
encourage innovation in carbon markets and avoid perverse incentives that hinder climate ambition.
Both countries can work together to achieve global emissions mitigation outcomes.

Clean energy, decarbonization and technology

This treaty has a significant focus on clean energy, decarbonization and technology, being a key area
that seeks to accelerate the transition of both countries towards a green and sustainable future,
encouraging cooperation in the development and adoption of renewable energies, such as solar and
wind, which are fundamental to the decarbonization of the economies. Importantly, the agreement
seeks the decarbonization of key industrial sectors, including a commitment to establish a green
shipping corridor using low-emission shipping fuel by 2025. In addition to this, business
collaboration is encouraged, including through a Go-Green co-innovation grant program to encourage
Australian and Singaporean SMEs to work together on green innovations. In addition to the above,
Australia and Singapore are jointly implementing 17 practical initiatives highlighted in the GEA
Annexes, which aim to deliver tangible results to benefit businesses, consumers and the wider
community.

Skills and capacity for Green Growth

This approach focuses on preparing the workforce for emerging opportunities in the green economy.
These are the most relevant aspects:

● Education and Training: Education and training programs are being explored that focus on
skills specific to the green economy, such as environmental management, renewable energy,
and energy efficiency.

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 ● Technical and Scientific Skills: Technical skills related to green technology design and
production, as well as knowledge in natural sciences such as biology and physics, are critical
for working in the green economy.
● Management and Organization: Management and organizational skills are crucial to support
the transition to more sustainable and green production practices.
● Environmental Regulations: Knowledge to oversee the implementation and enforcement of
environmental regulations and requirements is essential to ensure sustainable practices in
industries.
● Continuous Professional Development: Companies and workers must commit to continuous
improvement and reinforcement of green competencies through training and continuous
learning.
● Public Sector Support: It is important for the public sector to promote policies that facilitate
labor transitions to green jobs, including training and skills upgrading programs.
● Innovation and Leadership: Leadership, analytical thinking and innovation, as well as
information and data processing are identified as key skills.

These skills and capabilities are vital to ensure that workers can effectively participate in the green
economy and contribute to a sustainable future. Collaboration between Singapore and Australia on
this aspect of the GEA can help set a standard for training and skills development in the region and
beyond.

Conclusión
In conclusion, this treaty represents a significant milestone in the cooperation between
Singapore and Australia in moving towards a more sustainable, low-carbon economy.
Through the promotion of green trade, clean technology adoption, business
collaboration and investment in renewable energy, both countries are laying the
foundation for a greener and more resilient future. The implementation of 17 practical
initiatives under the GEA demonstrates a commitment to achieving tangible results that
benefit communities and the environment. This agreement not only strengthens the
bilateral relationship, but also establishes a model for regional cooperation in the
transition to net-zero emission economies.

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Bibliography
● Australian Department of Foreign Affairs and Trade (2022, October 18). Singapore-Australia
Green Economy Agreement. Government of Australia.(The Singapore-Australia Green
Economy Agreement, signed on October 18, 2022, promotes collaboration to drive economic
growth and emissions reductions, combining trade, economic and climate objectives).
● Asian Development Bank (n.d.). Australia-Singapore Green Economy Agreement. Retrieved
April 24, 2024, (The Australia-Singapore Green Economy Agreement is a database tracking
Free Trade Agreement developments in Asia Pacific economies).
● S. Rajaratnam School of International Studies (RSIS). (n.d.). The Singapore-Australia Green
Economy Agreement: A Template for Cooperation in the Green Economy. Retrieved April 24,
2024 (Negotiations focus on fair and resilient trade, resilient supply chains, clean energy and
decarbonization).
● Asian Development Bank (n.d.). Australia-Singapore Agreement to Export Green Energy
Underwater. Retrieved April 24, 2024(Rooftop solar generates more than 11% of Australia's
electricity. This agreement between Australia and Singapore seeks to boost the export of
green energy through submarine cables).
● World Intellectual Property Organization (WIPO). (n.d.). WIPO Lex - Intellectual property law
database. Retrieved April 24, 2024.
● The Straits Times (2022, October 18). Singapore, Australia sign trailblazing Green Economy
Agreement with 17 joint initiatives. Retrieved April 24, 2024 (News story on Singapore,
Australia sign groundbreaking Green Economy Agreement with 17 joint initiatives, stepping
up cooperation in areas such as sustainable agriculture and green shipping corridors.
● The Maritime Executive (2023, June 9). Australia-Singapore Plan Green Shipping Corridor by
2025. Retrieved April 24, 2024, (Australia and Singapore commit to establishing a green and
digital shipping corridor by the end of 2025, as a continuation of the Green Shipping
Cooperation initiative).