Green frameworks from AEC and their impacts on New Zealand — Featuring an exclusive interview with New Zealand’s environment minister

Written by Newsroom

New Zealand has shared a strong and long-standing relationship with ASEAN, with NZ being one of the latter’s earliest dialogue partners since 1975. ASEAN has long had strong economic ties with New Zealand, due to geographical proximity and ASEAN’s abundance of natural resources. 

In recent years, in correspondence with the UN Sustainable Development Goals under the 2030 Agenda for Sustainable Development, pressing climate-related issues are urged to be addressed. 

The stakes are high for New Zealand, as ASEAN remains to be NZ’s fourth largest trading partner, making up for almost a tenth of NZ’s total trade. Now, as the ASEAN Ministerial Meeting on the Environment and the ASEAN Finance Minister Meetings draw to a close, the respective ministers from NZ came together to attend the ASEAN Economic Community (AEC). 

Convening for its first session on the 18th of June 2025, ministers from various countries discussed the issue of how green bonds can play a pivotal role in sustainable development. 

Many ministers have come up with solutions to various issues, with countries such as the US, Australia, and India coming up with the proposal of The ASEAN-Observer Joint Carbon Pricing Mechanism (JCPAM), which includes more detailed allocations of varying carbon pricing mechanisms for different countries based on the conditions of the country, such as specific carbon emissions per capita, Gross Domestic Products, and other indicating indexes. 

Newsroom Interviewer: 

How can NZ play a role in the proposed frameworks targeting the issue?

NZ’s Environment Minister: 

In terms of these proposed frameworks, New Zealand will be able to offer its technical expertise to the countries that require this assistance. An apt example would be the Resource Management Act 1991… Additionally, with New Zealand’s strong economy, it is able to contribute financial resources to these proposed frameworks, strengthening not only the frameworks but also its already deep ties with ASEAN. 

Newsroom’s Evaluation 

The Newsroom is in strong alignment with the minister’s statement. With New Zealand’s previous experience in these technical fields due to previous regulatory reforms in similar areas, NZ will turn out to be a strong partner for these countries that lack technical expertise. We believe that NZ is able to boost the efficacy of the framework’s solutions, allowing for the sustainable and climate-resilient development of ASEAN’s economy. 

Due to NZ’s strong economic ties with ASEAN, this sustainable development of the regional economy would benefit NZ’s trade capacity with ASEAN, in turn benefiting Kiwis. 

Newsroom Interviewer: 

If these frameworks are to take effect on ASEAN countries, how would NZ be affected? 

NZ’s Environment Minister: 

The JCPAM framework on how carbon pricing mechanisms should be relative to the country itself. Countries with higher carbon emissions are to pay higher carbon prices, and vice versa. I do not believe it will greatly affect NZ, as our country has very low carbon emissions. 80% of our energy comes from sustainable energy sources like wind energy as well as hydropower. However, to countries like Singapore and Indonesia, which produce tons of carbon emissions, it would be a reasonable tradeoff for them to abide by these regulations proposed within the framework. 

Newsroom’s Evaluation 

The minister’s statement provides clean insights into how NZ may be impacted by any frameworks proposed by the AEC. Newsroom would like to add that given NZ’s strong trade with Singapore and Indonesia, any benefit that they receive will be felt by kiwis as well. 

In face of these measures being implemented, we can expect closer collaborations between providers and ASEAN countries. To New Zealand, Newsroom believes that NZ should constantly keep raising common agendas in mind, and prioritise the mutual benefit of both parties.

Written by Liu Haoyue, Raynor Leo Kay Hon, Nay Myo Win