Sustainability discussions focus on trade policy considerations and practices

Richard Tarasofsky of Canada, a co-convener of TESSD, together with Costa Rica, thanked the facilitators of the working groups for advancing the outcome documents.  "I encourage all of you to engage actively, (as) we are now less than one year away from MC14 ," he said.

The four TESSD working groups held technical discussions on their respective topics and exchanged views on the first drafts of possible outcome documents in line with guidance provided by the high-level plenary meeting on 4 December 2024.

In the Working Group on Subsidies, members explored the role of trade policy and international cooperation in decarbonizing maritime transport. They focused in particular on subsidies and other policy incentives for sustainable marine fuels, port infrastructure and green corridors, as well as on the role of financing and technical assistance to support developing economies in this regard.

Setting the scene, the International Maritime Organization (IMO) introduced the new IMO Net-Zero Framework with mandatory emission limits. The European Union presented its policies and measures to support sustainable marine fuels, while DNV, a Norwegian private company, and the Global Maritime Forum (GMF), a not-for-profit organization, introduced their work in supporting the establishment of green shipping corridors. MSC Group presented the actions being taken to decarbonize their global fleet and the necessity for regulatory certainty and clarity for private sector investments related to decarbonization. Regarding a possible working group outcome, members considered key design elements in subsidies, including considerations for effective subsidy design and related practices among members.

The Working Group on Circular Economy – Circularity heard about technical assistance projects offering insights into trade and circular economy, including from the International Trade Centre (ITC) and Mauritius on trade policy and regional cooperation in recycling lithium-ion batteries of electronic vehicles. UN Trade and Development (UNCTAD) also shared perspectives on trade-related aspects of circular economy in developing economies, highlighting opportunities for technology transfer for water treatment and textile circularity. In terms of a possible working group outcome, members focused on trade-related practices in priority sectors, such as textiles, batteries, electronics and renewable energy.

In the Working Group on Environmental Goods and Services (EGS), members shared experiences of identifying and facilitating trade in EGS. Jaime Coghi Arias from Costa Rica, Chair of the Joint Initiative on Services Domestic Regulation, highlighted the link between good regulatory practices and environmental services. Switzerland introduced approaches used for identifying EGS under the Agreement on Climate Change, Trade and Sustainability (ACCTS) undertaken by Costa Rica, Iceland, New Zealand and Switzerland. The United Kingdom shared insights into EGS for climate adaptation in the water sector, and Argentina outlined its work in relation to sustainable agriculture. Members also reviewed suggestions on the working group's draft outcome document.

In the Working Group on Trade-Related Climate Measures (TrCMs), members heard presentations on border carbon adjustments (BCAs), with a focus on carbon standards and measurement methodologies. The International Institute for Sustainable Development (IISD) introduced its work on interoperability in its "Global Stakeholder Dialogues". The Organisation for Economic Co-operation and Development (OECD) highlighted the importance of cross-border data-sharing through digitalization and customs cooperation. With regard to the first draft for an outcome, members brainstormed on how to compile policies in relation to climate objectives.

Concluding the two-day meetings, Ana Lizano of Costa Rica, co-convenor of TESSD, said: "It was very encouraging to see the participation of the private sector and the sharing of experiences by developing economies across all four groups, even from non-co-sponsors. Looking ahead, we have made significant progress on the outcome documents, reflecting members' inputs. We look forward to your collective support in refining the documents to ensure they are fit for purpose."

Presentations and documents related to the working group meetings are available here.

Guided by their 2021 Ministerial Statement, TESSD seeks to complement the work of the WTO Committee on Trade and Environment and advance discussions at the intersection of trade and environmental sustainability towards identifying concrete actions that members could take individually or collectively. The initiative, which is open to all WTO members, is currently co-sponsored by 78 members representing all regions and all levels of development.