CTE Committee
Highlights Active Engagement and Thematic Progress at Trade and Environment Week
·
Key
topics included agriculture and sustainability, climate resilience, carbon
measures, deforestation and the circular economy, and decarbonizing supply
chains.
·
Three
WTO environmental initiatives on fossil fuel subsidies, plastic pollution and
sustainable development solutions hosted events emphasizing inclusive
approaches and developing country perspectives.
·
Joint
submission by Japan and the Republic of Korea titled "Non-Binding Guidance
on Methodologies for Measuring Embedded Emissions", co-sponsored by
Australia and the United Kingdom.
·
The
second submission, tabled by Russia, was titled "Future Rules of Trade in
Plastic Products and the WTO: Potential Conflict".
·
Paper
raised concerns that future rules emerging from the ongoing UN plastics treaty
negotiations led by the Intergovernmental Negotiating Committee (INC) could
create trade barriers, particularly for polymers and plastic products, and
could conflict with WTO disciplines. The next round of INC negotiations is
scheduled for August in Geneva.
[ABS News Service/09.07.2025]
The
sixth edition of WTO Trade and Environment Week (30 June to 4 July) concluded with
members reiterating their strong engagement to exploring the relationship between
trade and the environment during the Committee on Trade and Environment (CTE) meeting
that closed the event. In a positive spirit, the CTE discussed concrete ways to
advance its work through thematic sessions, particularly on trade-related climate
measures, technology transfer and sustainable agriculture. Members also reviewed
new submissions and received updates on member-led environmental initiatives and
technical assistance activities.
Trade and Environment Week
2025
The
WTO Secretariat report on the event highlighted the active engagement and vibrant
discussions that took place throughout Trade and Environment Week as members and
stakeholders explored the evolving relationship between trade and the environment.
The 15 sessions, organized by WTO members, attracted high levels of participation,
both in person and online.
Key
topics included agriculture and sustainability, climate resilience, carbon measures,
deforestation and the circular economy, and decarbonizing supply chains. In addition,
three WTO environmental initiatives on fossil fuel subsidies, plastic pollution
and sustainable development solutions hosted events emphasizing inclusive approaches
and developing country perspectives.
Members
hailed the event's successful conclusion, acknowledging the breadth and depth of
its discussions and its value as a platform for sharing experiences, generating
new ideas and fostering collaboration among members and diverse stakeholders to
better leverage trade policy in support of environmental sustainability and climate
goals.
Submissions
At
the 4 July meeting of the CTE, WTO members reviewed two submissions. The first was
a joint submission by Japan and the Republic of Korea titled "Non-Binding Guidance
on Methodologies for Measuring Embedded Emissions", co-sponsored by Australia
and the United Kingdom. Japan explained that the proposal aims to enhance transparency
and interoperability around requirements for measuring embedded emissions in cross-border
goods trade. It stressed that the proposal is intended to promote cooperation and
to take on board the development dimension, and does not affect members existing
WTO rights and obligations.
A
large number of delegations provided detailed and constructive comments on the new
submission, and it was welcomed by many members who shared similar concerns over
the high compliance costs particularly for small businesses in developing economies
and least-developed countries (LDCs) caused by divergent approaches for measuring
emissions. Several members underscored the importance of considering varying levels
of development and climate responsibilities, and called for more inclusive consultations
during the legislative processes.
While
welcoming the increased transparency envisaged in the proposal, some members emphasized
that transparency should not replace or duplicate required notifications to relevant
WTO bodies, nor place additional burdens on developing members. Many expressed openness
to continuing work on the proposal with the co-sponsors.
The
second submission, tabled by Russia, was titled "Future Rules of Trade in Plastic
Products and the WTO: Potential Conflict". This paper raised concerns that
future rules emerging from the ongoing UN plastics treaty negotiations led by
the Intergovernmental Negotiating Committee (INC) could create trade barriers,
particularly for polymers and plastic products, and could conflict with WTO disciplines.
The next round of INC negotiations is scheduled for August in Geneva.
While
some members emphasized the need to ensure that any legally binding treaties are
consistent with WTO rules, others expressed support for the ongoing negotiations
on plastic pollution and the mutual supportiveness between multilateral environmental
agreements and the WTO.
Follow-up to thematic sessions
The
Chair of the CTE, Ambassador Erwin Bollinger of Switzerland, reported to the Committee
on the outcomes of his recent consultations with members regarding the path forward
further to thematic sessions on three key topics: trade-related climate measures
(TRCMs), technology transfer and sustainable agriculture. Launched in November 2023
at the request of members, the thematic session series serves as a platform to deepen
understanding of specific issues through concrete case studies and the sharing of
practical experiences.
The
Chair noted that members appreciated the fruitful exchanges in recent thematic sessions
and expressed willingness to engage constructively in further discussions. On TRCMs,
the exploration in greater depth of three sub-topics transparency, development
and coherence/interoperability was seen as the right way forward. On the topic
of technology transfer, members showed strong interest in continuing discussions
to support developing members' green transition. Regarding sustainable agriculture,
members were in favour of organizing a thematic session in October, and Barbados
and the United Kingdom were appointed as moderators to help shape the agenda.
Members
thanked the Chair for his report and exchanged views on the next steps. Many members
underscored the need for further technical work, focused on the three sub-topics
identified by the Chair, to better understand the impact of TRCMs. The new joint
proposal by Japan, the Republic of Korea, Australia and the United Kingdom was cited
as a valuable contribution to advancing work on improving interoperability and transparency.
Members
reaffirmed their interest in deepening discussions on technology transfer and proposed
various formats for experience-sharing. Broad support was voiced for the upcoming
thematic session on sustainable agriculture, with a focus on environmental aspects.
Members also highlighted the importance of ensuring that thematic discussions complement
rather than duplicate work underway in other WTO committees.
Transparency and information-sharing
At
the CTE meeting, members were briefed on developments regarding the Dialogue on
Plastics Pollution and Environmentally Sustainable Plastics Trade (DPP), the Trade
and Environmental Sustainability Structured Discussions (TESSD), and the Fossil
Fuels Subsidy Reform (FFSR).
The
WTO Secretariat presented the 2023 report of the WTO Environmental Database, issued
on 8 May 2025, with a thematic focus on pollution. It also briefed members on recent
and upcoming WTO technical assistance activities tailored to the requests of members,
including the 2024 Advanced Thematic Course on Trade and Environment and an initiative
by the WTO, World Bank Group and the World Economic Forum titled "Action on
Climate and Trade" (ACT). ACT is part of the WTO technical assistance offering,
and is designed to support developing economies and LDCs in leveraging trade policy
to support their climate change mitigation and adaptation objectives, while also
identifying opportunities for green trade-led growth.
The
Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC)
provided an update on preparations for the 2025 Climate Change Conference (COP30),
scheduled for November 2025 in Brazil. Brazil, which holds the COP30 Presidency,
highlighted the COP30 Action Agenda, noting the inclusion of climate and trade as
one of its key objectives. The WTO Secretariat briefed members, noting its collaboration
with UN Trade and Development (UNCTAD), the International Trade Centre (ITC) and
the International Chamber of Commerce (ICC) to monitor COP30 developments, explore
potential support for Brazil's priorities in the context of the COP30 Presidency,
and provide updates to members as they become available.