CarrZee: It looks like Singapore and Australia are going to try to help improve carbon trading in Asia, lowering the cost of global climate action.
Carbon markets in the two nations will be “compatible and credible international carbon markets, with high standards of social and environmental integrity,” according to a Singapore government summary (see below and pdfs).
The agreement is comprehensive, with at least 16 areas of collaboration.
Australia-Singapore landmark Green Economy Agreement
- Joint media release with:
- The Hon Anthony Albanese MP, Prime Minister
18 October 2022
Australia and Singapore have signed a first-of-its-kind Green Economy Agreement (GEA).
The landmark bilateral agreement between Australia and Singapore—our largest two-way trading partner in Southeast Asia—will support Australian businesses to seize economic opportunities presented by the global clean energy transformation.
The GEA builds on existing cooperation between Australia and Singapore to take action on climate change and strengthen trade and investment in clean energy across our region.
The Green Economy will become a new pillar of Australia’s Comprehensive Strategic Partnership with Singapore, signalling the resolve of both nations to confront the challenges and seize the opportunities faced in the transition to net zero.
Today the Australian Government has announced an initial investment of $19.6 million over four years for new cooperation under the GEA that will support job creation at home and strengthen supply chains, trade and market opportunities by:
- facilitating trade and investment in green goods and services, including by identifying and reducing non-tariff barriers;
- promoting collaboration between Australian and Singaporean businesses to build capability in new green growth sectors;
- fostering harmonisation and collaboration on standards and conformance to improve the interoperability of markets.
The GEA demonstrates the Australian Government’s ambition to deliver on its trade diversification agenda, strengthen regional energy security, seize the opportunities of energy transformation and support global climate action.
Further details on the GEA can be found on the Department of Foreign Affairs and Trade’s website.
Quotes attributable to Prime Minister Albanese:
“The Green Economy Agreement extends well beyond a simple bilateral trade agreement.
“This world-first agreement establishes a framework under which our countries can advance work on the clean energy transformation and support businesses and industry.
“This is a model that will support both Australia and Singapore, and partners in our region to seize the economic opportunities of the global transition to net zero.”
Quotes attributable to Minister Farrell:
“Our economic, trade, investment and business ties with Singapore will be further strengthened under the Green Economy Agreement.
“This agreement will boost new opportunities for businesses and investors in the global clean energy transformation.
“It will also open up new trade and investment opportunities, strengthen critical supply chains, and support our region’s transition to net zero.”
Memorandum of Understanding between the Government of Australia and the Government of Singapore for Cooperation on Low-Emissions Solutions
Summary: Priority Areas for Cooperation
The Government of Australia and the Government of Singapore developed this Memorandum of Understanding (MoU) to advance cooperation on practical projects and initiatives to advance low-emissions solutions, including new and emerging low-emissions technologies.
It was developed in the context of the 2020 Australia-Singapore Annual Leader’s Meeting which decided to expand Australia and Singapore’s strong bilateral relationship and the Comprehensive Strategic Partnership in several areas of common interests.
The MoU was signed by Australian Minister for Energy and Emissions Reduction, Hon. Angus Taylor and Singapore Minister for Trade and Industry Chan Chun Sing on 26 October 2020.
Priority areas of cooperation under the MoU include:
- Long-term emissions reduction strategies and low-emissions pathways
- Ongoing exchange of information on implementation of the Paris Agreement, including long-term low greenhouse gas emission development strategies, climate change policies and the role of technology and international cooperation in achieving low-emissions, to assist in identifying opportunities for future collaboration.
- iHydrogen and hydrogen-based energy supply chain studies
- Shaping international hydrogen standards
- Hydrogen research and development
- Carbon capture, utilisation and storage (CCUS), including:
- CCUS research, development and demonstration
- Carbon utilisation and carbon recycling
- Potential supply of minerals of interests from Australia to Singapore for CO2 carbonisation/mineralisation
- Industry performance
- Renewable energy trade, including:
- Exploring large-scale renewable electricity trade
- Measurement, Verification and Reporting (MRV), including:
- Identification of opportunities to collaborate both bilaterally and with other countries in the region in support of a shared commitment to the full and effective implementation of the Paris Agreement’s Enhanced Transparency Framework.
The lead agencies for implementation of the MoU are the Government of Australia Department of Industry, Science, Energy and Resources and the Government of the Republic of Singapore National Climate Change Secretariat.
Other Government agencies and non-government institutions, including businesses, industry associations, scientific research institutions and educational institutions may lead or participate in activities identified as part of this MoU
Unedited press release:
Singapore-Australia Green Economy Agreement: Propelling Our Sustainable Future
Joint Vision Statement
Singapore and Australia share longstanding economic, strategic, and people-to-people ties, underpinned by the Comprehensive Strategic Partnership. Our strong bilateral relations and multiple shared interests at regional and global fora have led us to work together to shape a sustainable future for our nations through a bilateral Green Economy Agreement (GEA).
In commencing negotiations, both parties are embarking on a world-first agreement that combines trade, economic and environmental objectives. The GEA will deepen our bilateral partnership through strengthened economic and environmental relations while furthering engagement on existing areas of cooperation, such as our Memorandum of Understanding on cooperation in low-emissions solutions. Our vision is to enhance the livelihood of our communities whilst transitioning to greener economies and addressing the challenges of climate change.
The GEA will deliver on this vision by reducing barriers to the trade in environmental goods and services; fostering convergence on regulations and standards; exploring new opportunities in green growth sectors; adopting environmental measures that facilitate trade and investment in a manner consistent with existing international trade and investment obligations; and ensuring our smooth and inclusive transition into a green economy that creates good jobs for our people.
We envisage an agreement that is practical, ambitious, and innovative, where technologies catalyse business and commercial opportunities, intergovernmental and public-private partnerships implement new cooperative projects, pathfinder initiatives scale up to benefit the broader region, and effective solutions assists us achieve our ambition of net zero emissions as soon as possible.
Our joint work will result in practical applications and benefits to the real economy and workforce. They aim to accelerate the adoption of low-carbon and green technologies, low-carbon and renewable energy, and decarbonised production processes. Our industry consultations and pilot proof of concept projects will ensure the GEA supports job creation, supply chains, and market development in green sectors. Drawing on cutting-edge knowledge, the GEA will improve the compatibility of our systems to ease doing business and trading in environmental goods and services across our borders.
Our broader aspiration is for the GEA to serve as a pathfinder that contributes to multilateral and regional policy development by establishing policies, standards and initiatives that will not only create good jobs in green growth sectors, but also strengthen environmental governance and global capacity to address environmental issues, in particular climate change. We seek to do this by exploring creative ways to encourage the adoption of common standards and practices with high environmental integrity, while upholding a rules-based and open trading system.
Some key points: