Green Economy Agreements (GEAs) are transforming the global trade landscape, promoting sustainable practices, and opening up new opportunities for businesses. In Singapore, where sustainability is a national priority, understanding and leveraging GEAs is crucial for businesses to thrive in today’s ever-evolving green economy.
This guide will outline the intricacies of GEAs, exploring their potential to reshape international trade and drive green growth. We'll examine the benefits for local businesses and how partnering with a trusted sustainable logistics provider like DHL Express Singapore can empower your business to thrive while navigating this evolving landscape.
What are Green Economy Agreements (GEAs)?
GEAs are government-to-government agreements that aim to foster international cooperation on environmental sustainability and economic growth. They establish a framework for countries to work together on promoting green trade and investment, facilitating the transition to a low-carbon economy, and addressing shared environmental challenges.
Singapore has been actively engaged in establishing GEAs with various partners, including Australia, New Zealand, and the European Union, demonstrating its commitment to sustainable development and international collaboration. While the specific provisions and focus areas of each GEA may vary depending on the countries involved, the key areas typically covered include:
- Reducing barriers to trade in green goods and services: This involves eliminating tariffs and non-tariff barriers, such as cumbersome customs procedures or differing standards, that hinder the flow of environmentally friendly products across borders.
- Promoting standards and conformance for sustainable products and practices: GEAs encourage the development and adoption of common standards for sustainable products and practices, ensuring that goods and services meet high environmental performance criteria.
- Facilitating clean energy and decarbonization efforts: GEAs support the development and utilization of clean energy technologies, promote energy efficiency, and encourage efforts to reduce carbon emissions across various sectors.
- Supporting green finance and investment: GEAs facilitate the flow of capital towards green projects and initiatives, encouraging investment in renewable energy, sustainable infrastructure, and other environmentally friendly endeavors.
How GEAs benefit Singapore businesses
Green Economy Agreements offer numerous advantages for local businesses, such as:
Access to new markets
GEAs can open doors to new markets for Singaporean businesses offering green goods and services. By reducing trade barriers and aligning standards, GEAs make it easier for businesses to export their sustainable products and services to countries that have signed these agreements. This presents significant benefits for businesses adopting a sustainable business strategy and positioning themselves as eco-friendly businesses.
For example, a Singaporean business specializing in solar panel technology could gain easier access to the European market under a GEA between Singapore and the EU, benefiting from reduced tariffs and streamlined customs procedures. This increased market access can lead to greater export volumes and revenue generation for businesses operating in the green economy.
Streamlined trade
GEAs simplify cross-border trade by harmonizing regulations and reducing compliance costs. This makes it easier for Singaporean businesses to export and import sustainably, reducing the administrative burden and facilitating smoother trade flows. This can be especially advantageous for small Singaporean businesses navigating the complexities of international shipping and commerce. Additionally, by cutting down the time and resources spent navigating complex regulations, businesses can focus on their core operations and expand their reach into new markets more efficiently.
Green innovation
GEAs can stimulate innovation and investment in sustainable technologies, creating opportunities for Singaporean businesses to develop and adopt cutting-edge solutions. The incentives and support provided under GEAs can encourage businesses to invest in research and development, leading to the creation of new green products and services that can be exported globally. This fosters a culture of sustainability and innovation within the business community, driving the development and adoption of environmentally friendly technologies and practices. Furthermore, by staying at the forefront of green innovation, Singaporean businesses can gain an added competitive edge in the global market.
Sustainable supply chains
GEAs encourage the development of sustainable supply chains, enabling businesses to potentially minimize their environmental footprint and meet the growing demand for more ethical and eco-friendly products and services. In many categories today, there is a clear link between environmental, social, and governance (ESG)-related claims and consumer spending. This highlights the advantages of being environmentally friendly, as consumers are increasingly drawn to businesses that prioritize sustainability.
According to McKinsey & Company1, products making ESG-related claims averaged 28% cumulative growth over the past five-year period versus 20% for products that made no such claims. Hence, by adopting sustainable business practices and integrating environmental sustainability into their operations, businesses can enhance their competitiveness and appeal to the growing pool of environmentally conscious consumers.
DHL Express: your partner in the green economy
To fully capitalize on the unique advantages that Green Economy Agreements present, businesses need a reliable logistics partner that understands the complexities of green trade and can provide sustainable shipping solutions. When you partner with DHL Express Singapore, you gain a competitive advantage thanks to our:
Global network
DHL Express' extensive global network facilitates access to markets covered by GEAs and enables seamless cross-border trade. Our presence in over 220 countries and territories ensures that your goods can reach customers worldwide, regardless of where they are located.
And thanks to our expertise and reach, we are able to provide an extensive range of logistics solutions and services, such as proactive parcel tracking, time-sensitive shipping, and shipment protection, to streamline your logistics operations and deliver exceptional customer experiences.
Sustainable solutions
DHL Express is committed to sustainability and offers a range of environmentally-friendly logistics solutions, including carbon-neutral shipping, carbon in-setting initiatives, and electric vehicles for last-mile delivery. Our shipping solutions help businesses reduce their environmental impact and potentially contribute to a more sustainable future.
GoGreen Plus is the latest addition to our range of sustainability solutions, allowing businesses to reduce 30% of the carbon emissions associated with their shipments with the use of sustainable aviation fuel (SAF). Unlike conventional jet fuel, SAF is produced from renewable and sustainable feedstocks, such as waste oils, agricultural residues, and non-food crops. This initiative marks a significant step towards decarbonizing the logistics industry and is increasingly recognized as a crucial element in advancing sustainable shipping, especially in air freight.
Expertise and compliance
DHL Express has the expertise to navigate complex customs regulations and ensure compliance with international customs as well as environmental standards, providing peace of mind for businesses engaged in international shipping regardless of the sector or type of goods. Our team of experts is equipped to help you through the intricacies of cross-border trade, ensuring your shipments comply with all relevant regulations.
Collaboration and innovation
DHL Express actively collaborates with partners and invests in initiatives to drive sustainability in the logistics industry and support the growth of a more sustainable economy. We are committed to developing innovative, long-term solutions that reduce emissions, optimize efficiency, and promote eco-friendly shipping practices.
Open a DHL business account today to unlock the benefits of green trade and thrive in the global economy.
1. McKinsey & Company, February 2023
