January 2025
New Zealand, Chile and Singapore announced the launch of a Joint Working Group on Trade and the Green Economy issues in November 2024.
Globally, trade and investment policies are adapting to the green economic transition. This change creates both challenges and opportunities for New Zealand businesses, and for our own environmental, climate change, and trade policy goals.
New Zealand is working with our partners to understand how trade agreements can be used to promote greater international collaboration to mitigate the challenges of navigating the green transition for exporters and investors, to enhance our ability to meet climate and other environmental objectives, and to harness new economic opportunities for New Zealand.
Objectives
The three-country Joint Working Group will consider how to use innovative trade policy frameworks to accelerate the uptake and deployment of low-emissions and resource-efficient solutions, production and consumption both in New Zealand and internationally.
This work will support both trade and climate objectives. It will explore how a possible green trade agreement could:
- add value to the New Zealand economy;
- increase cooperation and encourage innovation; and
- incentivise greener trade practices.
It will be additional to and complement other trade initiatives related to climate change, such as the Agreement on Climate Change, Trade and Sustainability (ACCTS) and Environment Chapters in New Zealand’s free trade agreements, including with the United Kingdom and European Union, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
A possible new green economy trade initiative
The Joint Working Group will make recommendations to the governments of Singapore, Chile and New Zealand on the scope of a possible new trade initiative. It will explore and assess trade-related issues in different areas of the green economy, in order to find common ground and areas where an initiative can add value.
The potential initiative builds on Chile, New Zealand, and Singapore’s strong track record of collaboration on innovative trade agreements. At this stage, the three countries are in an exploratory, without prejudice stage of discussions.
The Joint Working Group will provide recommendations to Ministers in 2025.
Areas of focus
Areas of focus for discussion by the Working Group may include:
- Facilitating trade in the green economy, including
- Green goods and services (what we trade);
- Greener trade in goods and services (how we trade);
- Sustainability credentials, standards, and conformance practices including emissions accounting for products;
- Carbon markets;
- Clean and renewable energy;
- Sustainable agriculture, forestry, and food systems;
- Green investment and sustainable finance frameworks;
- Green sectoral initiatives, including green shipping/transport, sustainable fuels, and the development of clean technology.
We want to hear from you
To support and inform our discussions with partners, throughout the month of February 2025 we welcome written submissions from organisations, businesses, Tiriti partners, and members of the public, on ways that a new international trade and investment agreement could support growth in New Zealand’s green economy.
We are particularly interested in feedback on the following questions:
- How do you see New Zealand working with partners to enhance global trade in greener goods, services and investment? What principles or priorities should guide the development of this initiative?
- What are the key opportunities and challenges your sector faces in transitioning to more sustainable trade practices, or to accessing new opportunities in this area? What are the key green market opportunities for your sector internationally?
- What are the current and future barriers to accessing international markets for green goods and services from New Zealand, or to attracting investment for green transition activities? Are green policies abroad creating unnecessary emerging barriers to trade in sustainable products and services from New Zealand, and if so what are those policies and barriers?
- What environmental and climate standards and certifications for products, services and investment should be recognised by this initiative? How could an initiative like this promote greater alignment and coherence on green standards internationally?
- How could this initiative encourage investment in green technologies and innovation? What are the key emerging technologies for the green transition?
- How could the initiative promote greater collaboration between research and education institutions across borders to support green skills and innovation?
- What best practices from other trade agreements or initiatives should be incorporated into this initiative?
- How could this trade initiative complement existing environmental treaties and trade agreements (e.g. Paris Agreement, Convention on Biodiversity, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Agreement on Climate Change, Trade and Sustainability)?
- How could this trade initiative reflect Māori interests, perspectives, kaitaki responsibilities, mātauranga and tikanga with respect to the environment (Te Taiao)? What Māori provenance qualities and business practices could be better recognised internationally for their sustainability attributes?
We welcome your feedback to GreenTrade@mfat.govt.nz by 28 February 2025.
If you have any questions, please contact MFAT’s Joint Working Group team at this address as well.