Singapore and Australia Ink Landmark Green Economy Agreement

Singapore and Australia have signed a landmark "green economy" pact in a bid to advance trade and sustainability in both countries.

The Singapore-Australia Green Economy Agreement (GEA) was inked by Minister for Trade and Industry Gan Kim Yong and Australian Minister for Trade and Tourism Don Farrell yesterday at the 7th Singapore-Australia Leaders' Meeting in Canberra, Australia.

Prime Minister Lee Hsien Loong and Australian Prime Minister Anthony Albanese were present in the signing, as per a joint press release by the Ministry of Trade and Industry and the Ministry of Sustainability and the Environment on the same day.

The first of its kind, the GEA aims to "reduce barriers to cross-border trade in clean energy as well as green trade and investment." It is also a part of the city-state's efforts in confronting the issues brought on by climate change.

The GEA indicates a series of green economy principles in seven areas, namely trade and investment; standards and conformance; green and transition finance; carbon markets; clean energy, decarbonisation, and technology; skills and capabilities; and business engagements and partnerships.

The two countries also agreed on joint initiatives to facilitate cooperative projects, which include non-tariff barriers for environmental goods and services, sustainable agriculture food systems, cross-border electricity trade, green shipping cooperation, research and development cooperation, and more.

Australia is known as Singapore's 10th largest trading partner, while Singapore is the former's 5th largest trading partner.

"Both countries will continue to strengthen bilateral and international cooperation in the green economy by building on these initiatives and exploring further work under the GEA," the press release read.