ASEAN Green Economy Framework Agreement (GEFA) Feasibility Study

ASEAN Secretariat procurement: ASEAN Green Economy Framework Agreement (GEFA) Feasibility Study. TERMS OF REFERENCE ASEAN Green Economy Framework Agreement (GEFA) Feasibility Study The ASEAN Secretariat and the Australian Government, through the Australia for ASEAN Futures Initiative, invite applications from firms, organisations, or joint venture/consortium/association (JCVA) for the above-referenced project. All proposals will be assessed based on their technical quality and value for money. I. Background a. Project Context Sustainability remains at the forefront of ASEAN’s economic integration agenda, particularly in balancing the imperative to address climate change with the need to minimise barriers to cross-border trade, investment, and cooperation. The impacts of climate change are projected to be significant for ASEAN, including a potential GDP loss of up to 11% by 2100 if left unaddressed, as well as affecting approximately 87 million people living in flood-prone areas. Conversely, the pursuit of carbon neutrality, as articulated in the ASEAN Strategy for Carbon Neutrality, is expected to generate substantial economic benefits, including an additional USD 5.3 trillion in GDP, mobilisation of USD 6.7 trillion in investments, and the creation of 66 million jobs by 2050. Over the past three years, implementation of the Strategy has made steady progress, including strengthening regional circular economy supply chains, enabling regional power trading, and promoting the exchange of green best practices. To further accelerate a sustainable and inclusive economic transition, ASEAN will need to intensify efforts to reduce barriers and restrictive measures in the trade of environmental goods and services, adopt coordinated and credible sustainable finance frameworks, and ensure targeted capacity-building and technical assistance. In this context, an ASEAN Green Economy Framework Agreement (GEFA), as proposed at the 26th AEC Council in October 2025, is envisaged to provide a stronger institutional foundation to advance the shared objectives of the ASEAN Strategy for Carbon Neutrality. Accordingly, the conduct of a Feasibility Study for the ASEAN GEFA is both timely and necessary. The study will serve as an exploratory, inclusive, and flexible platform to enable ASEAN Member States (AMS) to deliberate on priority areas requiring accelerated intervention, taking into account national circumstances, levels of readiness, and evolving global developments. Importantly, the study is not intended to prescribe, pre-negotiate, or prejudge the outcomes of future GEFA negotiations. The following proposed areas (non-exhaustive) could be covered in the study to identify how a GEFA can support ASEAN’s green economy transition based on shared objectives identified by the Strategy and emerging issues. The study is intended to remain exploratory, inclusive and sufficiently flexible in scope, to allow Parties to further deliberate on priority areas based on national circumstances, levels of readiness, and evolving international development. These areas are not meant to prescribe, pre-negotiate nor prejudge the outcome of the GEFA negotiations. The Page 1 of 40 Terms of Reference ASEAN Green Economy Framework Agreement (GEFA) Feasibility Study Study also does not preclude the consideration of additional issues beyond those listed below, subject to the mutual agreement between Parties: Non-Physical Environmental Goods (NPEGs): With growing utilisation of instruments such as carbon credits, renewable energy certificates, and sustainable aviation fuel credits (SAFc), ASEAN stands to benefit from enhancing interoperability in rules and standards and seeking alignment with internationally recognised frameworks to enhance ASEAN’s competitiveness in the global market. This would help reduce market fragmentation, strengthen cross-border recognition and trade, and improve financing flows, while providing greater certainty for businesses operating across the region. The Study shall also leverage synergies between existing initiatives and areas of work to be identified under the GEFA, including, among others, build upon the works from the High-Integrity ASEAN Carbon Initiative (HACI). Such efforts will elevate ASEAN carbon credit standards to be internationally recognised, transparent, and of high integrity, while laying a strong foundation for a credible, interoperable, and well-functioning ASEAN carbon market. New Environmental Goods (NEG): The transition towards decarbonisation has led to the emergence of new environmental goods, such as sus