Published: 21 Jun 2021
Trade-related measures aimed at protecting and preserving the environment are fundamental in achieving the Sustainable Development Goals of the United Nations. These measures can provide guidance and conditions to avoid the misuse of the environment and protectionism.
Trade, Environment and the SDGs
The 2030 Agenda for Sustainable Development recognizes international trade as an engine for inclusive economic growth and poverty reduction, and an important means to achieve the Sustainable Development Goals (SDGs).
Removing barriers to trade in green goods and services could add further momentum to the clean energy transformation unfolding right before us. Adam Wolff, Deputy Director-General of the World Trade Organization (WTO)
International trade has a critical role to play in environmental protection and the effort to mitigate climate change. According to Adam Wolff, trade policies are powerful tools to increase resource efficiency, scale-up investment in clean and resilient infrastructure, and accelerate climate-friendly innovation. They also unlock the USD 26 trillion in market opportunities that would result from bold climate action by 2030.
The WTO indicates that renewable energy, solar photovoltaic and wind power have become the cheapest sources of electricity in many markets. In addition, new renewable power capacity has outpaced new fossil fuel power capacity for the past seven years. In 2019 alone, renewables accounted for nearly three quarters of new power capacity globally. Furthermore, employment in this sector, which reached 11 million jobs worldwide in 2018, is expected to quadruple by 2050, while jobs in energy efficiency and related areas could grow by another 40 million.
According to the International Trade Centre (ITC), global concern about environmental issues is also driving a growing market for sustainably sourced natural resource based products. Conscious consumers are demanding more evidence of production supporting “fair” and “ethical” practices in the value chain and, globally, this market is worth around USD 50 billion. The certified natural resource based product market is driving reductions in poverty as production is often labour intensive and premium prices reach smallholder producers who make up the bulk of the rural poor. The trade is also generating environmental benefits like carbon sequestration in soils and timber, forest preservation, decreased pesticide use and net biodiversity gains.
In wildlife, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), aims to ensure that international trade in specimens of wild animals and plants does not threaten their survival. There are several appendixes listing different species and their trade regulations.
The Role of Geneva
World Trade Organization (WTO)
Through its goals, rules, institutions and forward-looking agenda, the World Trade Organization (WTO) provides an important means of advancing international environmental goals. The Trade and Environment Committee (CTE) of the WTO is the standing forum dedicated to dialogue between governments on the impact of trade policies on the environment, and of environment policies on trade. At the 2020 WTO Ministerial Conference in Nur Sultan, Kazakhstan, that has now been postponed, WTO Members States were expected to commit to a number of existing and new environment and trade priorities that would advance progress on the SDGs.
Under the Doha Development Agenda, the regular committee is also looking at the effects of environmental measures on market access, the intellectual property agreement and biodiversity, and labeling for environmental purposes.
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival. Because the trade in wild animals and plants crosses borders between countries, the effort to regulate it requires international cooperation to safeguard certain species from over-exploitation. CITES accords varying degrees of protection to more than 37,000 species of animals and plants, whether they are traded as live specimens, fur coats or dried herbs. In addition, CITES has been among the conservation agreements with the largest membership, with 183 Parties.
International Trade Centre (ITC)
Established in 1964, the International Trade Centre (ITC) is the joint agency of the WTO and the UN and is the only development agency that is fully dedicated to supporting the internationalization of small and medium-sized enterprises (SMEs). The Trade and Environment Programme (TEP) of ITC strengthens the capacity of SMEs in developing countries to compete in environmental markets and to overcome barriers that might result from environment-related standards. The programme also addresses challenges relating to climate resilience and biodiversity loss. ITC provides analysis and support in different global value chains including agri-food, natural products, fibres and leathers.
ITC’s Trade for Sustainable Development (T4SD) is a partnership-based programme which helps businesses, regardless of their position in the value chain, chart their path to more sustainable trade by better understanding the sustainability initiatives landscape and to connect with business partners. T4SD’s new platform, Sustainability Map, also integrates the already well-established tools such as Standards Map and SustainabilityXchange to the new interconnected modules.
ITC also works to boost Fairtrade and environmental exports of developing countries, including exports of cultural, ethnic and organic products. ITC supports biodiversity, enables exporters to adapt to climate change and targets increased use of green technologies.
United Nations Conference on Trade and Development (UNCTAD)
The United Nations Conference on Trade and Development (UNCTAD) is a permanent intergovernmental body established by the United Nations General Assembly in 1964. UNCTAD’s work on harnessing international trade in promoting sustained growth and inclusive development includes as a key aspect, support to developing countries in taking advantages of emerging opportunities for trade associated with the protection, promotion and preservation of the environment and sustainable development objectives generally, while minimizing potential adverse impacts. This work is carried out by the Trade, Environment, Climate Change and Sustainable Development Branch of the Division on International Trade and Commodities.
Since its launch by UNCTAD in 1996, the BioTrade Initiative has been promoting sustainable BioTrade in support of the objectives of the Convention on Biological Diversity. UNCTAD is currently implementing the Global BioTrade Programme: Linking trade, biodiversity and sustainable development with the support of the Swiss State Secretariat for Economic Affairs SECO. The objective of this four-year programme is to provide key stakeholders with the ability to size and capitalize on trade opportunities from linking biodiversity and sustainable development, thereby advancing the implementation of the SDGs, as well as the Aichi Targets and the Post Aichi framework.
United Nations Environment Programme (UNEP)
The Resources and Markets Branch of the United Nations Environment Programme (UNEP) works to accelerate the transition to resource-efficient and sustainable economies. It engages with governments in their transition to inclusive green economies, fosters partnerships with business and industry for cleaner production and green investments, influences consumer information and choice for sustainable lifestyles, and strengthens and communicates the knowledge and scientific base for resource efficiency and sustainable consumption and production.
The Economic and Trade Policy Unit conducts research and provides capacity building support and advisory services to enable the transition to inclusive and green economies. The unit analyzes the roles of fiscal, trade, and industrial policies in enabling an economic transformation.
One of the work streams of the unit is the Environment and Trade Hub, serving as the overarching delivery mechanism for UNEP’s work on trade. Through research, capacity building and policy advisory services, the Hub provides tailored support to countries seeking to leverage trade and investment as vehicles for achieving the SDGs and their Paris Agreement commitments.
Forum on Trade, Environment & the SDGs (TESS)
The Forum on Trade, Environment & the SDGs (TESS) is a partnership of the Graduate Institute and UNEP, which core mission is to promote multilateral dialogue and action on trade policies that address urgent global environmental crises and advance progress on the UN Sustainable Development Goals (SDGs). It aims to catalyse policy action across the trade, environment and sustainable development communities through a versatile, needs-driven and outcome-focused toolbox of activities. Mandated to “connect, inform, analyse and empower”, the work of TESS will combine public-facing events and policy briefs; expert and stakeholder roundtables; and off-the-record consultations key to supporting international policymaking processes.
International Institute for Sustainable Development (IISD)
The International Institute for Sustainable Development (IISD) is an independent think tank based in Canada and Geneva working to create a world where people and the planet thrive. Its experts offer practical guidance to help authorities choose the right system of electricity generation, reduce consumption of fossil-based transport fuels, and implement international climate change commitments. The IISD Global Subsidies Initiative (GSI) is widely recognized as a world-class leader in the quantification, evaluation, and reform of subsidies.
Geneva Trade Platform
The Geneva Trade Platform is a not-for-profit organization based at the Graduate Institute’s Centre for Trade and Economic Integration. The platform is a hub, designed to bring people, ideas, and resources together to address global challenges through better informed, better supported and more inclusive trade policy.
According to the IISD, governments around the world spend at least a trillion dollars a year on subsidies to exploit the world’s natural resources.
Through the adoption of the Sustainable Development Goals (SDGs), governments around the world have agreed that conserving and sustainably using the oceans, seas and marine resources is essential for sustainable development. In particular, target 14.6 acknowledges the detrimental effect of harmful subsidies and the need to eliminate them to achieve a sustainable blue economy.
By 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated (IUU) fishing and refrain from introducing new such subsidies. Sustainable Development Goal 14.6
The WTO was identified as the implementing agency to fulfill this target, recognizing that appropriate and effective special and differential treatment for developing and least developing countries should be an integral part of the WTO fisheries subsidies negotiations. Since then, the Food and Agriculture Organization (FAO) of the UN has said that 33% of the world’s fish resources are overfished and 60% are being fished to their biologically sustainable limit. According to UNCTAD, fishing subsidies are estimated to be as high as $35 billion worldwide, of which $20 billion directly contributes to overfishing. Fisheries subsidies are the main driver of the overcapacity of industrial fishing fleets and thereby overfishing – removing these harmful subsidies has become a bare-faced necessity.
Despite ongoing discussion for nearly twenty years, leaders have yet to reach an agreement. WTO Director-General Ngozi Okonjo-Iweala has made fisheries a top priority and urged ministers to work together to reach an agreement at the ministerial meeting in July 2021. The latest development and further information on the issue are available in our update on overfishing.
IISD notes that the evidence is crystal clear that fossil fuel subsidies are environmentally harmful and undermine efforts to tackle climate change. Despite this, support for fossil fuels costs governments USD 300–600 billion every year—depending on fuel prices on the world markets—an amount that could otherwise be spent on global priorities such as health, education, social protection, and a just transition to a clean energy future. As countries struggle to support their economies in the aftermath of the COVID-19 crisis, it’s more important than ever to align climate ambitions with economic priorities. Governments have the opportunity to look closely at fossil fuel subsidy reform and fuel taxation as effective tools for a green recovery as they work to maintain climate commitments while generating revenue to support pressing social needs.
For more information on the international environmental negotiations agenda in 2021 and changes due to the sanitary situation, you may consult our update.
At the Doha Ministerial Conference in 2001, negotiations on fisheries subsidies at the WTO were launched with a mandate to clarify and improve existing WTO rules. The adoption of the SDGs in 2015 and of a negotiating mandate in 2017 gave renewed urgency to the discussions, and left the WTO with the task of securing an agreement by 2020 on disciplines to eliminate subsidies for illegal, unreported and unregulated fishing and to prohibit subsidies that contribute to overcapacity and overfishing, with special and differential treatment for developing and least developed countries.
Despite ongoing discussion for nearly twenty years, leaders have yet to reach an agreement. The upcoming 12th Ministerial Conference (MC12) from 30 November to 3 December 2021 in Geneva (originally scheduled for June 2020 in Nur-Sultan, Kazakhstan) is the opportunity to conclude these negotiations and achieve positive outcomes for SDG 14.6.
Animal and Plants Committee
The 31st meeting of the Animals Committee (AC31) is now scheduled to be held online from 31 May to 4 June 2021, and the 25th meeting of the Plants Committee (PC25), from 21 to 24 June 2021.
The 73rd meeting of the CITES Standing Committee took place online from 5 to 7 May 2021.
Agreement on Climate Change, Trade and Sustainability (ACCTS)
Costa Rica, Fiji, Iceland, New Zealand and Norway have agreed to start negotiations on an ambitious, binding agreement on climate change, trade and sustainability. The countries recognize that climate change is a major problem, and are seeking to use trade rules in support of climate action. They will consider trade policy measures such as eliminating tariffs on environmental goods, establishing new commitments for environmental services, reductions in fossil-fuel subsidies, and certification/eco-labelling schemes.
ITC | 8 September – 14 October 2021 | Online
- Plastics pollution dialogue advances discussions, eyeing MC12 outcome | WTO | 21 June 2021
- Carbon and Controversy: Why we need global cooperation on border carbon adjustment | IISD | Nathalie Bernasconi & Aaron Cosbey | 18 May 2021
- Greening International Trade: Pathways Forward | Carolyn Deere Birkbeck | 3 May 2021
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- WTO Deputy Director-General Wolff: “Trade policies have a huge potential to support climate action” | WTO | 17 September 2020
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- Fostering Green Exports through Voluntary Sustainability Standards in Developing Countries | UNCTAD
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