Korea, Singapore and New Zealand agree first global module on trade-related climate measures

South Korea, Singapore and New Zealand have agreed on a common framework for designing and verifying climate measures that affect trade, the Ministry of Trade, Industry and Energy said Thursday, a step toward giving exporters a shared set of rules as more governments attach carbon conditions to market access.

The three countries decided to create the world's first module on trade-related climate measures, setting out design principles and a monitoring, reporting and verification system, as part of the Green Economy Partnership Agreement they launched in Gyeongju on Oct. 31, 2025.

Seoul's aim in the talks is to shape how trade-related climate measures such as the European Union's carbon border adjustment mechanism are designed, and to limit the damage such measures do to trade. Korea also wants low-emission goods including low-carbon steel to be recognized in overseas markets.

The three countries will also pursue cooperation on expanding trade in low-emission and environmental goods in hard-to-decarbonize sectors, developing markets for environmental-attribute trading, aligning sustainability reporting systems, and sustainable aviation fuel, construction and food systems.

"We need to preemptively establish new trade norms in the green field so that our industry's decarbonization transition leads to capturing related markets, using the response to climate change as a new opportunity," said Kim Jang-hee, the ministry's deputy minister for new trade strategy.

"We will work closely with the GEPA participating countries to advance the negotiations so that we can achieve the goal of sustainability while producing practical results for our economy," Kim said.

The three countries plan to continue talks at the next round in early 2027.