Encouraging regional trade of green products
The Association of Southeast Asian Nations (ASEAN) has instituted an initiative for encouraging regional trade of energy-efficient products. The Standards Harmonization Initiative for Energy Efficiency (SHINE) framework focuses on the harmonisation of technical standards across the region for specific appliances such as air conditioners and lighting products. The framework comprehensively takes into account the policies, regulations and capacity building for the entire supply chain. The ASEAN countries offer a tariff rebate for products originating within the ASEAN region. This initiative has led to an increase in regional trade. Currently, 68% of the air-conditioning equipment is imported from ASEAN countries. While African countries are also advancing toward harmonising energy-efficient appliance standards in parts of the region, possible strategies to boost regional trade have not been explored. The SHINE initiative could serve as a relevant example.