Removing tariffs and non-tariff barriers on environmental goods and services could reduce carbon emissions by up to 0.6% thanks to improved energy efficiency.

Earlier this week, the UK became an official member of the CPTPP – a far-reaching trade agreement to which Vietnam is a party. This major agreement creates a potentially large single market, removes many tariff barriers for member countries, and especially brings benefits to the green transition journey of member countries.

On 15 December, the UK became the first European country to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). With the UK’s accession, the CPTPP will cover 15% of the world’s GDP and a population of around 500 million people. Membership of the CPTPP will also strengthen the UK’s existing bilateral trade agreements with CPTPP countries – including the UKVFTA with Vietnam – opening up many opportunities for green energy projects.

Mr. Iain Frew – British Ambassador to Vietnam said: “Over the past decade, trade between the two countries Vietnam and the UK has doubled to £6.4 billion and that is a really important achievement. In that, we really prioritise the energy transition as an area of ​​investment and development for the future. The green transition is clearly very important in Vietnam. We are working with the Vietnamese Government through the JETP, a $15.5 billion agreement, to promote investment in offshore wind, solar power, upgrading Vietnam’s grid. As the energy sector grows, we will have the energy we need to drive the economy, and at the same time this energy will be green energy.”

The WTO has found that removing tariffs and non-tariff barriers on environmental goods and services could reduce carbon emissions by up to 0.6% through improved energy efficiency. This would also help attract foreign direct investment (FDI), as businesses perceive the risks of extreme weather events to be reduced.

Mr. Iain Frew – British Ambassador to Vietnam commented: “Free and open trade plays an essential role in the economy, bringing benefits to businesses and consumers. CPTPP is a central part of that story. In fact, more and more countries want to join CPTPP and want to expand the bloc. This proves that there are countries committed to free and open trade, and clearly recognize the benefits it brings.”

In particular, compared to the early FTAs, agreements such as CPTPP or EVFTA have a deeper and more detailed level of environmental commitments. This encourages member countries to persevere in the direction of sustainable development, build and promote the development of a circular economy, and build a green, environmentally friendly economy.