WORLD TRADE
ORGANIZATIONTN/TE/W/19
TN/MA/W/24
28 January 2003
(03-0583)
Committee on Trade and Environment
Special SessionNegotiating Group on Market AccessOriginal:  English
NEGOTIATIONS ON ENVIRONMENTAL GOODS:  EFFICIENT, LOWER-CARBON
AND POLLUTANT-EMITTING FUELS AND TECHNOLOGIES
Submission by the State of Qatar
Paragraph 31 (iii)
I. INTRODUCTION
1. In view of the structure adopted by the Trade Negotiations Committee and the subsequent
responsibilities entrusted with the Committee on Trade and Environment in Special Session (CTESS)and the Negotiating Group on Market Access (NGMA), this paper is submitted for consideration by
both the CTESS and the NGMA.
2. In the initial communication by the State of Qatar to the Third Meeting of the CTESS
(TN/TE/W/14), we emphasized the necessity of compilation of definitions and classification for
environmental goods and services by the CTESS.  Although the work conducted by the OECD andAPEC is a useful contribution to the negotiation on environmental goods, it must be considered as a
basic framework that requires further comprehensive elaboration and coverage.
3. A clear methodology capable of defining and assessing the scope and characteristics of
environmental goods and technologies is a fundamental necessity for their compilation and for
enhancing the negotiations by the NGMA and the CTESS on the eligibility of the concession list of
environmental goods, technologies and services.
II. DEFINITION OF ENVIRONMENTAL GOODS
4. It is essential that the specific environmental protection end-use criteria adopted in selecting
particular environmental goods, technologies or services are clearly identified.  Inherent
environmental and wider sustainable development benefits that warrant the inclusion of these goods
and technologies in the concession list subject to negotiation by the CTESS and the NGMA must be
demonstrated as accurately as possible. This will lead to better classification and ranking of theenvironmental goods, technologies and services. Moreover, it will enhance the synergies and mutual
supportiveness between MEAs and the WTO and strengthen their complementary benefits to
sustainable development particularly for developing countries.
III. EFFICIENT, LOWER-CARBON AND POLLUTANT-EMITTING FUELS AND
TECHNOLOGIES
5. Identification and evaluation of the merits of environmental goods, technologies and services
in relation to MEAs are important steps in order to define the scope and eligibility of these goods and
services for trade liberalization negotiations by the WTO.TN/TE/W/19
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6. In the previous submission by the State of Qatar to the third Meeting of the CTESS, we
recommended that combined-cycle natural gas fire d generation systems and advanced gas-turbines
systems, known for their energy efficiency and sust ainable development potential, be included in the
list of environmental goods.
7. This paper attempts to define and assess the economic and environmental merits of these
systems and other related efficient lower-carbon and pollutant-emitting fuels and technologies.
Table 1 contains a list of the proposed goods and technologies and their merits.  Although the
assessments for these systems were made with reference to standard technologies and products, there
is no question as to their significance in relation to MEAs and sustainable development.  We propose
that the list in Table 1 be included in the OECD  illustrative categories of environmental goods,
Section B relating to cleaner technologies and products.
IV. RATIONALE FOR TRADE LIBERALIZATION
8. Emission of greenhouse gases (GHGs) due to combustion of fossil fuels is believed to be the
primary cause of the observed global climate change.  A principal target of the United Nations
Framework Convention on Climate Change (UNFCCC) is, LIST OF PROPOSALS submitted under
paragraph 31 (i) of the Doha declaration therefore, the gradual shifting of global energy systems fromcarbon intensive energy sources to carbon-free renewable energy sources in order to reduce the
emission and build-up of GHGs in the atmosphere. Since renewable energy sources will be unable to
meet most of the global energy demand for some time, natural gas and other related cleaner fuels, e.g.
cryogenic and chemical gas to liquid fuels derived from natural gas, are an essential bridge to a
carbon-free era.
9. Synergism between natural gas and renewable energy sources already exists.  Hybrid systems
utilizing natural gas fired generating units provide backup power for intermittent renewable
technologies such as photovoltaic and wind in order to enhance their value.  A simple cycle gas
turbine and wind farm achieve a combined capacity factor as high as 75%.
10. Hybrid renewable energy sources and natural gas are also linked through their role in a
renewable hydrogen economy.  Currently most hydrogen is manufactured using natural gas.  Since
hydrogen can be stored, it frees intermittent renewable energy technologies from reliance on backup
power from conventional energy sources.  For similar reasons it provides a clean energy source for the
transportation sector.  It is anticipated that natural gas will, most likely, provide the initial source for
any large-scale penetration of hydrogen into the global energy market.
11. According to the IEA global energy outlook, natu ral gas is the second fastest growing energy
source after non-hydro-renewables (geothermal, so lar, wind, tide, wave energy, biomass and waste).
Although projected to be the fastest growing primary energy sources over the outlook period,
renewable energy sources' share of the global energy market will only be 3% by 2020 compared to the
current value of 2%.  On the other hand, global demand for natural gas is projected to increase
steadily, reaching a share of 26% in 2020 compared to 22% today.
12. Natural gas has been recognized in the Kyoto Protocol negotiations as part of the solution to
stabilize greenhouse gases in the atmosphere.  Implementation of articles 4.8 and 4.9 of the
convention and articles 3.2 and 3.14 of the Kyoto Protocol has the following paragraph:
Paragraph (31):  “Encourages Annex-II Parties to promote investment in, and to support and
cooperate with, developing country parties in the development, production, distribution and transport
of indigenous, less greenhouse gas emitting, environmentally sound, energy sources including naturalgas, according to the natural circumstances of each of these parties”.  The IPCC Assessment Reports
have recommended increased use of natural gas over other fossil fuels as a way to reduce greenhouse
gas emissions.TN/TE/W/19
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13. Assessment results of the potential merits of the proposed list of environmental goods and
technologies (Table 1) show that their relative merits, compared to standard fuels and technologies,
are substantial and broader when viewed within the perspective of multilateral environmental
agreements (MEAs). They offer, in addition to climate change mitigation opportunities, a wide rangeof sustainable development socio-economic benefi ts including:  (i) higher energy efficiency;
(ii) reduced toxic air pollution emissions and waste generation;  (iii) improved air quality conditions
and decreased adverse environmental impacts on human health, human welfare and on biodiversity.
The broad range of benefits offered by the combination of lower-carbon and pollution-emitting fuels
and technologies are primarily due to the intrinsic chemical and physical characteristics of natural gas
and its cryogenic and chemical gas to liquid derivatives which are virtually free of sulphur, nitrogen,
aromatics and ash content. These properties, in addition to lower carbon content, result in the superiorenvironmental performance of these fuels when combined in use with available advanced energy
technologies.
V. TRADE BARRIERS
14. The reduction or elimination of tariffs on the global trade of efficient lower-carbon and
pollutant-emitting fuels and technologies is an important step to lower their cost and enhance theirglobal diffusion. In addition, non-tariff barriers (NTB) are serious impediments to global trade in
these goods.
15. The current energy-related fiscal measures and policies concerning imports to developed
countries are distorted. They do not clearly reflect the large economic benefit and wider sustainable
development merits resulting from enhanced utilization of efficient lower-carbon andpollutant-emitting fuels and technologies such as natural gas.  Progressive phasing out of market
imperfection e.g. subsidies, fiscal incentives, tax and duty exemptions in all pollution emitting sectors
is imperative.  Restructuring of the carbon tax to reflect the carbon and pollutant contents of fuels is
also important in order to realize the objectives of global environmental protection and sustainable
development, particularly for the developing countries.
16. Energy Market Liberalization is economically beneficial through the efficiency gains within
the existing systems and through enhanced technological dynamism.
VI. CONCLUSION
17. Efficient, lower-carbon and pollutant-emitting fuels and technologies have wider sustainable
development merits that include socio-economic and environmental benefits, climate change
mitigation potential, improved fuel efficiency and reduced adverse impacts to human health.  An
assessment of these advantages, for a selection of environmental goods and technologies, is presentedin Table 1.
18. The State of Qatar proposes the inclusion of these items, as summarized below, in the OECD
list of environmental goods and technologies, Section B on cleaner technology and goods.
19. The merits of this proposal are sound.  It is sincerely hoped that the discussions by the CTESS
and NGMA will lead to trade liberalization of these efficient lower-carbon and pollutant-emittingfuels and technologies, leading to subsequent improvements in the availability and affordability of
these products in the global energy market.TN/TE/W/19
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Category Environmental Goods & Technology
I Gas Turbines Combined Cycle Power 
Generation1.
2.
3.Liquefied Natural Gas (LNG)  (HS
2711.11.00)
Natural gas (Gas)  (HS 2711.21.00)Natural gas driven turbines and
associated parts used  (HS codes)
II Chemical Gas to Liquid (GTL) Fuels1.
2.3.4.5.6.7.GTL LPG (HS Code)
GTL Diesel (HS Code)GTL Naphtha (HS Code)GTL Jet Fuel (HS Code)GTL Lube Oils (HS Code)GTL Methanol (HS Code)GTL Dimethyl Ether (HS Code)
III Natural Gas Fuel Cell Technologies 1.
2.
3.Fuel Cell Power Plants (HS Code)
Residential Fuel Cells  (HS Code)Commercial Fuel Cells (HS Code)
Table 1. Efficient, Lower Carbon and Pollu tant Emitting Fuels and Technologies:
Environmental Merits Relative to MEAs
I.  GAS TURBINES COMBINED CYCLE POWER GENERATION
1. Environmental Good
HS
Environmental Good
HSLiquefied Natural Gas  (LNG)
Heading 2711.11.00 (USA)
Natural Gas (Gas)
Heading 2711.21.00 (USA)
2. Environmental Technologies
HSNatural Gas driven Turbines and Associated Parts
used in CC generation.
HS Codes
3. Sustainable Development
Merits
• Range of IRCE Compared to
other Fossil fuels of Higher
Carbon ContentIncreased Relative Conversion
Efficiency (IRCE)
23%  - 37%TN/TE/W/19
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4. Climate Change Mitigation Merits
(UNFCCC)
• Range of Estimated LRGE
compared to other Fossil FuelsHigher Carbon Content.
CO2 / kwh
CH4 / kwh
N2O / kwhLower Relative GHG Emissions (LRGE)
35%  - 55%
25%  - 75%90%  - 95%
5. Wider Sustainable Development
Merits
• Range of Estimated LRTPE
compared to other Fossil Fuels
of Higher in Carbon Content
• SO2 / kwh
• PM /  kwh
• NOx / kwh
• NMVOC / kwhLower Relative Toxic Pollutant Emissions
(LRTPE), Reduced Toxic Waste Generation,
Reduced Human Health Impact.
100%
100%50%  -  70%20%  -  30%
6 Reference FCCC/SBSTA/2002/MISC.3  P 16-35 (UNFCCC
document)
II.  CHEMICAL GAS TO LIQUID FUELS
7. Environmental Good GTL LPG        (HS Code)
GTL Diesel     (HS Code)GTL Naphtha  (HS Code)GTL Jet Fuel   (HS Code)GTL Lube Oils (HS Code)GTL Methanol    (HS Code)GTL Dimethyl Ether (HS Code)
8. Wider sustainable Development
MeritsUltra-clean transportation fuels, oils and feedstock
with lower toxic pollutant emissions and no
aromatic content.  Reduced human health impact
9. Emission Reductions Relative to
Low sulfur petroleum DieselHC  (45%)
CO  (45%)PM  (30%)NOx (9%)TN/TE/W/19
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Reference • US Dept. of Energy
• Energy and Transport Sector Outlook to 2020.
Commonwealth Scientific and Industrial
Research Organization (CSIRO),
September 2002
III.  NATURAL GAS FU EL CELL TECHNOLOGIES
10. Environmental Technology Fuel Cell Power Plants (HS Codes)
Residential Fuel Cells  (HS Codes)Commercial Fuel Cells (HS Codes)
11. Wider Sustainable Development
Merits
Range of IRCEIncreased Relative Conversion Efficiency (IRCE)
70%  -  85% (using waste heat)
Significantly lower relative toxic pollutant
emissions, toxic waste generation and negligiblehuman health impact.
12.  Climate Change Mitigation Merits
(UNFCCC)Significantly lower GHG Emissions
(CO2, CH 4, N2O)
Reference • US Dept. of Energy
• IEA
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