Solar panels and solar hot water systems are just two of the 50-plus items facing tariff cuts in an agreement reached at the Asia Pacific Economic Co-operation (APEC) Forum in Vladivostok, Russia.
Tariffs will be cut to five per cent or less by 2015 on 54 environmental products that deal with energy efficiency in a bid to reduce greenhouse gas emissions.
Federal Trade Minister Craig Emerson said Australia has been a leading advocate of the environmental goods initiative since it was first proposed almost two years ago.
APEC leaders also agreed to improve university links across the region and seek common standards to allow students and researchers to work overseas.
Emerson said Australia exported $1.2 billion of environmental goods each year.
APEC's economies account for 56 per cent of the world's GDP and more than 70 per cent of Australia's trade in goods and services.
He said it is the first time "in a very long time" that agreement had been reached to reduce tariffs on goods.
He said the outcome is an outstanding achievement in the current climate of rising protectionism.
"More liberalised trade in these goods will help APEC economies make the transition to a lower-carbon future," Emerson said.
Economic growth in Asia is set to explode with consumers in the region emerging as a dominant force.
A recent McKinsey Consultants report predicts that by 2025 the number of middle class consumers in Asia will nearly double from 1990 levels, to 4.2 billion, or more than half of the global population of 7.9 billion.
By 2025, annual consumption in China, India, Indonesia and other emerging markets will rise to at least $US30 trillion, up from $US12 trillion in 2010.
Craig Emerson
