Sweden and Norway are backing a green free trade agreement that will open up trade in environmentally friendly products. The agreement was signed today in Davos by the EU, the US, China and Japan, along with a number of other countries that agreed to move ahead with the initiative to promote green trade.

“I am pleased that we have finally succeeded in reaching an agreement, as the government has long fought for a green free trade agreement. Free trade is necessary for the environment and the climate. A green trade agreement would be a major step in the right direction and also benefit the Swedish economy and provide more job opportunities,” says Swedish Trade Minister Ewa Bjorling.

Further negotiations to streamline green trade will take as their starting point an Asia-Pacific Economic Cooperation (APEC) agreement from September 2012, which focuses on more open trade in 54 environmental goods including machinery and raw material used for the production of renewable energy and clean industrial production.

Other countries that are backing the free green trade include Australia, Canada, Costa Rica, Hong Kong, Japan, Korea, New Zealand, Singapore, Switzerland and Taiwan.