WTO Members Discuss Measures to Tackle Climate
Change and Strengthen Sustainability
WTO members discussed the trade-related aspects of the European
Green Deal and heard presentations from several developing countries on their national
environmental initiatives at the 30 March meeting of the Committee on Trade and
Environment (CTE). The Committee also heard updates on the ongoing preparations
for the UN Climate Change Conference (COP26).
The European
Union provided members with an update on its carbon border adjustment mechanism
and other trade-related aspects of the European Green Deal. The EU said the mechanism
aims to address the risk of "carbon leakage," that is, a situation where
companies would decide to shift production to countries with lower carbon costs
or would import finished products from these jurisdictions. The EU also indicated
that the mechanism would consider efforts of other countries to reduce greenhouse
gas emissions. After public consultations and impact assessments, the process for
adopting a decision on the mechanism will start in June this year with a view to
implementation by 2023, the EU said. The EU also shared information on its initiatives
on forest conservation, environmentally friendly food systems ("farm to fork"
strategy), and its new overall trade strategy launched in February, which it says
puts sustainability at the heart of trade policy.
A number
of members called for continued transparency from the EU on the ongoing design of
the carbon border adjustment mechanism. Several members emphasized the need to consider
different levels of development among countries and to minimize trade distortions.
The EU said compatibility with WTO rules and other international commitments are
at the core of its ongoing reflections on the mechanism.
Canada
reported on discussions from the webinar it organized on 4 March about the issues
related to carbon border adjustment. International cooperation is fundamental to
ensure that carbon border adjustments can meet climate targets enshrined in the
Paris Agreement while ensuring a fair environment for business, Canada said.
Several
developing countries presented their experiences implementing national environmental
measures. The Central African Republic discussed its efforts to address plastics
pollution. Maldives reported on its initiatives to promote environment friendly
products and pursue a green economy. Pakistan presented the experience of a tyre and footwear manufacturing and exporting company, which
transitioned into a more sustainable business by tapping solar power.
The Committee
heard presentations on preparations for the UN Climate Change Conference (COP26)
in November to be held in Glasgow, the United Kingdom.
It also
was updated on members' environmental initiatives that aim to make a mark at the
WTO's 12th Ministerial Conference (MC12), which is scheduled to take place at the
end of this year. Canada, the co-convener with Costa Rica of the Trade and Environmental
Sustainability Structured Discussions, shared how their group of WTO members are
developing a work plan to guide exchanges ahead of MC12. MC12 is the logical target
for the group to aim for articulating the vision of the structured discussions and
to deliver a ministerial statement, Canada said.
Morocco
reported on the recent meeting of the
Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics
Trade, a group of WTO members for which it is a coordinator. The group, in its meeting on 29 March, discussed
the role of trade and the WTO in tackling plastic pollution. Many noted in the meeting
that MC12 offers a new opportunity for the group to demonstrate progress and share
a roadmap for WTO work, Morocco said.
New Zealand
discussed plans for a joint ministerial statement at MC12 on fossil fuel subsidy
reform and provided an update on the ongoing negotiations for an Agreement on Climate
Change, Trade and Sustainability (ACCTS).
The fourth round of negotiations concluded last week and parties continue
to make steady progress, New Zealand said.
The Committee
elected its new chair, Ambassador Manuel A.J. Teehankee
of the Philippines, who replaces the outgoing chair, Ambassador Chad Blackman of
Barbados.
The Committee
was briefed on the latest developments in Multilateral Environmental Agreements
(MEAs) dealing with chemicals and waste. The United Nations Environment Programme demonstrated the InforMEA
initiative, a one-stop portal for information on MEAs, and its ongoing collaboration
with the WTO Secretariat to include trade-related measures pursuant to selected
MEAs on its online platform. The latest update to the WTO MEA Matrix, which
provides background information on trade-related measures provided in selected MEAs,
was presented and is available here.
The Committee
furthermore heard reports on events that members held back-to-back with the CTE
meeting. Barbados and Maldives presented on their event titled "Trade, the
Environment and Sustainability: A Focus on Green Recovery in a COVID-19 Era."
The United Kingdom provided information on activities related to making supply chains
more sustainable. Guatemala reported on the event it co-hosted with Finland and
the International Chamber of Commerce (ICC) titled " Sustainable
business and circularity - why does sustainability make business sense?"
The WTO
Secretariat briefed members on the latest information available on the WTO Environmental Database. Following
the update in November 2020, the database now covers information on over 13,200
environment-related measures notified by members under WTO agreements. A summary
report of the underlying data was published in March and is available here.