Singapore and Australia signed a groundbreaking agreement to enhance cooperation in the green economy, including climate investment, financing, and technology, as reported by Strait Times on October 18. Under the Singapore-Australia Green Economy Agreement, collaborations between the two countries will start with 17 joint initiatives, such as formulating a list of environmental goods and services that could enjoy preferential trade treatment. According to Singapore Prime Minister (PM) Lee Hsien Loong, the agreement will advance the two countries’ transition to net-zero emissions, create jobs and growth opportunities in green sectors, and support the development and commercialization of green technologies.
This is the first agreement of its kind between countries. Singapore and Australia hope that the deal could be a pathfinder for other countries that want to team up for solving global problems. Under the agreement, the two countries have drawn up a list comprising 372 environmental goods and 155 environmental services and will reduce tariffs and non-tariff barriers for these projects. According to Australian PM Anthony Albanese, one of the desired outcomes of the deal is the success of the planned USD18.8bn Sun Cable project, which will export solar power from Northern Australia to Singapore via Indonesia and meet 15% of Singapore’s power needs when it is completed by 2029. Aside from creating a sound environment for green initiatives, the two nations will also join hands to develop green shipping corridors and study best practices for sustainable agri-food systems.