Supporting the Green Economy Partnership Agreement
New Zealand is working with our trading partners on a new set of commitments and initiatives under the Green Economy Partnership Agreement (GEPA to harness new economic opportunities for New Zealand, enhance our ability to meet climate and other environmental objectives and mitigate the challenges of navigating the green transition for producers, exporters and investors.
ALENZ supports this initiative and commends the Ministry of Foreign Affairs and Trade in their foresight and leadership in New Zealand transitioning to a more sustainable and fair trading environment.
To help inform negotiations, MFAT called for submissions.
ALENZ supports the GEPA, as a significant opportunity for our sector and New Zealand:
- Given our high component of renewable energy we are well positioned to gain competitive advantage in a future marketplace where circular, low carbon footprints are recognised, rewarded and compete on a fair playing field with lowest cost.
- However, exports of New Zealand made low carbon extrusions have declined by over 50% in the last decade as our members struggle to compete with high embodied carbon extrusions manufactured in countries which largely rely on coal for energy.
- In a post GEPA world, where the cost of high emissions is included as a cost of manufacturing, (by way of carbon tax), New Zealand manufacturers will be able to realise the competitive advantage of New Zealand’s low embodied carbon manufacturing, particularly for aluminium extrusion exports.
- GEPA provides an important opportunity to recognise Māori perspectives within green manufacturing, not just primary industries. Our aluminium extrusion sector is largely powered by renewable electricity, operates with high recycled content and circular material use, and supports long-life, low-carbon building systems. Likewise, the sector employs a disproportionately high number of Māori in skilled, long-term industrial roles. This reflects manaakitanga in practice—supporting whānau, regional communities, workforce development, and intergenerational capability in advanced manufacturing.
Some of our key recommendation include that:
- A robust energy policy framework will be needed to attract new investment in green transition activities ensuring an abundant supply of affordable, reliable renewable energy to New Zealand manufacturers.
- GEPA will need to be underpinned by a robust framework based on internationally recognised standards.
- Embodied carbon and product circularity needs to be key components of new and existing trade agreements. Or alternatively GEPA members could adopt the EU’s approach of signally the introduction of a carbon border adjustment mechanism, with a transition pathway in advance.
Please view our full submission ALENZ submission on GEPA Feb 206