The three countries could potentially cooperate in areas such as sustainable aviation fuel, carbon credits and renewable energy certificates.
GYEONGJU, South Korea: Singapore, Chile and New Zealand on Friday (Oct 31) launched negotiations for a new Green Economy Partnership Agreement (GEPA), committing to move toward a low-carbon future together.
The agreement could see the countries cooperating in several aspects of the green economy, such as sustainable aviation fuel, carbon credits, renewable energy certificates and trade-related climate measures.
Singapore Prime Minister Lawrence Wong and his counterparts from Chile and New Zealand announced the launch of negotiations in South Korea, where the Asia-Pacific Economic Cooperation (APEC) summit is taking place.
Hailing it as a milestone in international trade, Mr Wong said growth and sustainability were previously seen as competing priorities.
“But technological breakthroughs have challenged this assumption,” he said, adding that recent developments prove that both priorities can be mutually reinforcing.
Trade, he said, can facilitate the collective green transition – by allowing goods, services, technology and finance to flow across borders.
That is why the three countries had formed a joint working group on trade and the green economy in November 2024, he said.
The group assessed how best to advance trade and climate action together, and considered proposals for a new way to improve cooperation.
Geopolitical developments and climate commitments are reshaping business priorities, Singapore’s Ministry of Trade and Industry (MTI) said in a press release.
Trade strategies and environmental goals are becoming increasingly interconnected and companies are adapting to new regulations and changing demands, said MTI, adding that the shift to a low-carbon future creates challenges and opportunities.
(Seated from left) Chile’s Minister of Foreign Affairs Alberto van Klaveren, Singapore’s Minister for Sustainability and Environment and Minister-in-charge of Trade Relations Grace Fu and New Zealand’s Minister for Trade and Investment Todd McClay at the launch of negotiations of the Green Economy Partnership Agreement in South Korea on Oct 31, 2025. Chile President Gabriel Boric, Singapore PM Lawrence Wong and New Zealand PM Christopher Luxon witness the exchange of documents. PHOTO: The Straits Times © SPH Media Limited.
WHAT THE NEGOTIATIONS ARE ABOUT
Officials have recommended initial topics to be considered under the GEPA, including issues that have “grown in salience”, said Mr Wong.
He said sustainable aviation fuel can make a significant impact if widely adopted across borders, while carbon credits can be traded to support the net-zero transition.
Trade-related climate measures can also be better aligned with policy goals, he added.
“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. And by taking such actions, the GEPA can help to modernise trade and investment policies to support flows of environmental goods and services,” he said.
It will also unlock new opportunities in the green economy for Singapore companies, create good jobs in related sectors and lower barriers to trade while accelerating the green transition.
Mr Wong said Singapore, Chile and New Zealand may be small countries, but they have a proven track record of pioneering innovative agreements together.
He pointed out that the three countries started the Trans-Pacific Strategic Economic Partnership with Brunei, which later evolved into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
They also signed the first-of-its-kind Digital Economy Partnership Agreement.
“That continues to receive interest from other aspiring economies – a sign of the value which others see in it,” said Mr Wong.
“Now, we are applying the same collaborative spirit to the green economy.”
He encouraged officials from the three countries to look beyond conventional approaches, embrace new ideas and draw on insights from the private sector.
“I am confident that by joining hands, we can turn trade into a force for good, catalyse economic growth while doing our part for the environment and for global climate action,” he said.
A GLOBAL SHIFT
Speaking at the launch, New Zealand Prime Minister Christopher Luxon said the drive for GEPA is a recognition that there is a global shift toward more resilient, durable and greener economies.
While this has brought challenges, it also has significant economic opportunities for all, he said.
He then noted that the rapid pace of global regulatory change has created more uncertainty, which has added more complexity for businesses “at a time of already very challenging global economic headwinds”.
This “burden of compliance” is something that New Zealand, Singapore and Chile can work together to reduce. “That means greater cooperation, greater coordination,” said Mr Luxon.
Chile President Gabriel Boric said there is a need to move toward development models that are harmonious with the environment and those who live in it.
“This diagnosis is shared by all presidents here, but it is not shared all around the world nowadays,” he said.
That makes it a “permanent struggle” in multilateral efforts.
“I know other countries are looking to what we are doing and that we are in some way reference on green economy, I am confident that this process will bring more opportunities and benefits to our people,” he said.
Source：CNA
