INF/TE/SSD/R/1 9 
1 November  2023 
(23-7372) Page: 1/11 
Trade and Environmental Sustainability Structured 
Discussions  Original:  English  
 
  
TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS  (TESSD)  
INFORMAL WORKING GROUP  MEETINGS  
HELD ON 19-20 SEPTEMBER 2023  
Summary of discussions1 
1  Remarks by the TESSD Co-convenors  
1.1.  In their introductory remarks, the Co -convenors (Canada and Costa Rica) expressed 
appreciation for Members' efforts and engagement in TESSD and encouraged them to remain open 
and have substantive discussions. They also  noted that they would engage in infor mal consultations 
to hear Members' views on the update of the TESSD Work Plan, the Co -Convenors' proposal for a 
digital trade and environmental sustainability hub put on the table during the last plenary, and the 
proposed Co -convener statement regarding th e package of deliverables for MC13.  
1.2.  Gratitude was conveyed to Nicola Waterfield (Canada) for her able steering of TESSD work, 
and welcome was extended to Richard Tarasofsky (Canada)  who would take over her role  in 
coordinating TESSD  on behalf of Canada . Additionally, the Co-convenors welcomed new 
facilitators  – Tiffany Smith (Israel) for the Working Group on Subsidies, Ben Rake (United Kingdom) 
for the Working Group on Environmental Goods and Services  (EGS) , Ariel Marie Quek (Singapo re) 
for the Working Group on Trade -related Climate Measures  (TrCMs)  – and conveyed gratitude  to their 
predecessors.   
2  Working Group on Subsidies  – 19 September  (a.m.)2 
Environmental effects and transparency  
2.1.  Presentations were made by the WTO Secretariat (A griculture and Commodities Division), the 
Organization for Economic Cooperation and Development ( OECD ), and the Secretariat of the  
Convention on Biological Diversity (CBD) .  
2.2.  The presentation by the WTO Secretariat focused on agro -environmental support measures 
notified by Members to the Committee on Agriculture , which had become more easily accessible 
through the recently updated Agriculture Information Management System (AG -IMS). Environmental 
payments under para graph  12 of the Green Box amounted to an annual average of around USD 35 
billion over recent years, with the top eight Members accounting for 99% of payments provided in 
2018. It was noted that certain agro -environment al support payments would fall under other 
categories  and present a disaggregation challenge . They include d, inter alia , payments not meeting 
the conditions of para graph  12 of the Green Box; policies other than direct payments such as 
provision of general services associated with environmental programmes; and direct payments on 
 
1 This summary provides a non -exhaustive, illustrative summary of the issues addressed by Members, 
prepared and circulated under the responsibility of the facilitators chairing the meetings: Mauro  Bruno 
(Uruguay) and Tiffany Smith (Israel) for the Working Group on Subsidies ; Olivia Coo k (Chile) and Kazunari 
Morii (Japan) for the Working Group on Circular Economy – Circularity ; Carlos Guevara (Ecuador) and Ben 
Rake (United Kingdom)  for the Working Group on Environmental Goods and Services; and Jean -Marie  Meraldi 
(Switzerland) and Ariel M arie Quek (Singapore)  for the Working Group on Trade -related Climate Measures . 
2 Fifteen Members contributed to the discussions: Australia, Brazil, Canada, China, Costa Rica, 
European  Union, Israel, Japan, Norway, Paraguay, Republic of Korea, Switzerland, Chinese Taipei, 
United  Kingdom, and United States.  INF/TE/SSD/R/1 9 
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  environmental grounds such as decoupled income support, structural adjustment assistance via 
resource retirement programmes , and relief from natural disasters.  
2.3.  The OECD made a presen tation on its work related to measurement of agricultural support, 
effects of agricultural support on the environment , and reform options and trends. According to its  
most recent annual report monitoring support policies in 54 countries , agricultural support had been 
increasing , and amounted to USD 817 billion per year during 2019 -2021. It was highlighted that 
analytical work found that the most market -distortive support (market price support, output 
subsidies , and variable input subsidies ) was also potentially most harmful to the environment , 
including in terms of GHG emissions and nitrogen balance . Findings also indicated that 
agri-environmental payments could have positive environmental impacts if spatially targeted and 
based on environm ental performance.  Options and trends in reform policies were shared, including 
reducing potentially most environmentally harmful support,  and redirecting or introducing subsidies 
to improve the environmental performance of the agricultural sector.  
2.4.  The pr esentation by the CBD Secretariat elaborated on Target 18 of the Kunming -Montreal 
Global Biodiversity Framework (GBF) , which aimed to identify, eliminate, phase out , or reform 
incentives  (including subsidies ) harmful for biodiversity. The presentation deli neated key legal 
provisions of the GBF such as general clauses containing its purpose and considerations for national 
circumstances as well as parties' obligations with respect to the conservation and sustainable use of 
components of biological diversity. The CBD Secretariat 's work on information gathering and 
analysis, as well as their adoption and implementation of Aichi Biodiversity Target 3 , was briefly 
discussed. It was also mentioned that work was envisaged to further develop the monitoring 
framework for the GBF .  
2.5.  As part of the discussions, Members reacted to the presentation and responded to the following 
questions:  
• How can the environmental effects and trade impacts of agricultural subsidies be 
identified?  
• How can transparency and data availability be enhanced to bette r understand these 
impacts?  
• How can agricultural subsidies impact behavioural changes to support environmental 
sustainability?  
2.6.  Several Members acknowledged the complexity involved in i solating the environmental impacts 
of agricultural subsidies  and encour aged a holistic approach , taking into account environmental, 
social (such as food security) , and economic (development) indicators. One Member additionally 
encouraged assessing the impacts of subsidies both in the subsidizing  country  as well as third 
count ries while another  Member encouraged the discussion  to go beyond merely carbon emissions 
and consider other relevant environmental factors like healthy soil and water management. The 
importance of cooperation, experience sharing, and a collaborative approa ch was underscored. Some 
Members re called  the existing evidence of environmental impacts of agricultural subsidies and  called 
for deep er engagement with this evidence whilst also supporting additional research.  
2.7.  Members noted the role of transparency and monitoring of agricultural subsidies  in 
understanding the individual impacts resulting from Members ' national circumstances . Some 
Members suggested using the Committee on Trade and Environment (CTE) to better monitor the 
implementation of SDG and GBF commitments. Collaboration with environmental stakeholders for 
data collection and impact assessments using s cience -based, transparent measurement tools were 
deemed necessary in assessing environmental impacts accurately . Members discussed the  role of 
agricultural subsidies in influencing behavioural changes in support of environmental sustainability, 
and several proposed repurposing agricultural support , encouraging farmers to shift to more 
sustainable practices through the  use of subsidies to incentivise positive environmental impacts, 
either through introduction of performance requirements to existing support program mes or through 
increasing funding for new initiatives.  INF/TE/SSD/R/1 9 
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  Experience  sharing on subsidy design  
2.8.  The presentation by Japan focused on its two -dimensional approach to incentivize sustainable 
agriculture by using a combination of agri-environmental policies to : (i) constrain/mitigate the 
negative environmental effects of subsidies ; and (ii) enhance the positive environmental effects 
through subsidies. Japan mitigated negative effects by, inter alia , establish ing periodically reviewed 
reference levels applicable to almost every agricultural support program me as a requirement , and 
promot ing the use of  good agriculture practices and related certifications  for its farms . On the other 
hand, to enhance the positive impacts of subsidies, Japan supported R&D (climate resilient crops) 
and environmentally friendly farming activities  through, inter alia , direct paym ents. Since 
agricultural policy alone  was insufficient for a better environment, Japan  ensured policy coherence 
by enacting  laws that create d cross-sectoral pollution standards for all sectors . Finally, the 
presentation  underlined that policy design and environmental impact assess ments should take  into 
consideration the unique natural , social , and economic conditions of each country.  
2.9.  Uruguay's presentation focused on economic incentives in the agricultural sector with 
environmental objectives. Two domesti c incentive program mes (tax reductions) aimed at forestry 
conservation that had been enacted over 30 years ago had resulted in an increase in forest cover 
and the  subsequent  creation of a carbon sink. Uruguay highlighted that the positive environmental 
impact of these policies was unintended from a policy design perspective . This  indicated the 
complexity of effectively assessing the long -term environmental impacts of subsidies , whether 
positive or negative .  
2.10.  As part of the discussions, Members reacted to th e presentations and shared their experiences 
with subsidy design, including by responding to the following questions:  
• How do you consider and balance possible environmental effects and trade impacts in 
the design of agricultural subsidies?  
• What crit eria d o Members consider when establishing subsidies in order to determine 
whether or not they are environmentally friendly?  
2.11.  Members noted the value of experience sharing to the discussions . Regarding the balancing 
of possible environmental effects and trad e impacts, several Members recognized the need for a 
holistic approach that t ook into account the different support objectives provided to agriculture, 
including social aspects such as food security. A number of Members pointed to examples of how 
sustainabi lity, social and economic  objectives could be  compatible, while others noted that certain 
objectives could be  conflicting, with one  Member stressing  that environmentally positive effects  could 
not be balance d against trade distortions and negative economic  and social effects for third countries 
that hindered their  abilities to achieve  sustainable development .  
2.12.  Members shared their positive experience s with designing subsidies conditional on meeting 
environmental requirements , and underlined the importance of : (i) providing transition finance and 
market -based incentives to encourage the private sector to move towards more sustainable 
activities ; (ii) support ing technology , innovation  and infrastructure ; as well as (iii) suppor ting 
practices that contribute d to more productive, inclusive, resilient, and sustainable agricultural 
systems . Some Members pointed to  the important role of the disciplines in the WTO Agreement on 
Agriculture and its Green Box for the design and repurposing of subsidies.  One Member suggested 
that criteria for designing environmental subsidy program mes should include externalities to third 
countries , while another Member pointed to the importance of technology transfer and 
comprehensive impact asse ssments  of subsidies .  
Draft compilation  
2.13.  Facilitators introduced the draft compilation of Member experiences and considerations 
regarding subsidy design  (INF/TE/SSD/W/29) and explained its structure. The document was divided 
into three sections dealing with agricultural subsidies, subsidies related to the low -carbon transition , 
and transparency , respectively. The sections on agricultural subsidies and subsidies related to the 
low-carbon transition each include d two compilations – first, a table comprising Members ' 
experiences shared either through presentations or through interventions; second, a table containing 
considerations related to the design of subsidies that were raised as part of Members' discussions. INF/TE/SSD/R/1 9 
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  The elements in the table on considerations ha d been consolidated into bullet points preceding the 
table, which lay out in a concise form the considerations that Members t ook into account when 
designing subsidies. Facilitators invited comments , particularly on these consolida ted points , and 
requested Members to review the table reflecting their experiences. The third section of the draft 
document contain ed tables with compilations of transparency considerations for the two types of 
subsidies. Facilitators acknowledged the need  for further work on this section and invited  Members' 
views on this.  
2.14.  Members welcomed the document and commented  that it formed a good basis for a n outcome 
of the Working Group , and towards  best practices of designing subsidies and enhancing 
transparency.  A few  Members provided specific comments on content, and others noted  that they 
considered the  document to be a living document that would be updated going forward , including 
on other types of subsidies . For the way forward, o ne Member underlined the need  to develop 
actionable principles and guidelines on how to design environmentally beneficial subsidies that have 
minimal trade distortions, while another Member suggested the use of a questionnaire to allow for 
more in -depth information on subsidy design a nd outcomes.   
3  Working Group on Circular Economy – Circularity – 19 May (p.m.)3 
3.1.  The meeting covered trade facilitation and waste aspects of circular trade with a focus on the 
electronics sector.  
Policy perspectives  
3.2.  Presentations were made by the World Customs Organization (WCO) , the Basel Rotterdam 
Stockholm (BRS) Convention s, and the WTO Secretariat commented . The presentation by the WCO 
presented the findings of a recent report titled "T ransition to a circular economy and implications for 
customs administrations ". The report identified several challenges and shared examples of initiatives 
and good practices to overcome them . As for  the issue of limited data, the presentation noted  
initiatives aimed at m onitoring and tracing specific goods (product passports and Global Trade Item 
Number (GTIN) systems ). Regarding procedural complexity and waste crime challenges, customs 
administrations may face difficulties balancing trade facilitation in reverse supply c hains with waste 
crime detection and prevention.  The presentatio n also identified several challenges raised by the 
private sector regarding trade in circular economy goods, including a lack of HS codes and 
subsequent customs valuation difficulties ; obtaini ng certificates of origin  and incorporating a circular 
economy in the Authorized Economic Operator (AEO) scheme ; and non-customs regulations on 
second -hand/used goods, such as import bans, non -automatic licen cing requirements, quality 
control , and other te chnical requirements.  
3.3.  The Secretariat of the BRS Conventions made a presentation on  developments regarding  the 
Prior Informed Consent (PIC) procedure and e -waste under the Basel Convention. The need to 
effectively implement the trade control procedure s for transboundary movements of hazardous and 
other wastes at all stages from notification to confirmation of disposal under the PIC procedure was 
underlined . Expediting efficiency of procedures, digitalization of documents, and ensuring 
responsi veness of the competent authorities were i dentified  as areas to improve . It was further 
noted that recent amendments to the Basel Convention would subject all e-waste to the PIC 
procedure as of 2025. T he importance of distinguishing between waste and non -waste as well as 
between hazardous and non -hazardous waste was also stressed. The presentation highlighted that 
circularity required various elements in place, including national legislation to include the private 
sector, financial schemes to support circul arity, credibility of the labelling and certification schemes , 
and standards for collection and recycling.  
3.4.  The WTO Secretariat provided a comment on the presentations from a trade facilitation 
perspective. It was noted that there were several provisions in  the WTO Trade Facilitation Agreement 
(TFA) that could play a positive role in the development of circular economy , including  provisions  
relating to transparency and the opportunity to comment on proposed changes in regulations as well 
as the possibility o f advanced rulings on customs issues like HS classification and rules of origin.  
Furthermore, the importance of outreach and standards, building trust and credibility, customs 
cooperation, digitalization and single windows, and authorized economic operator s were underlined.  
 
3 Ten Members contributed to the discussions: Australia, Canada, Chile, China, Colombia, Costa Rica, 
European Union, Japan, United Kingdom, and United States . INF/TE/SSD/R/1 9 
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  It was noted that TFA implementation varied across the membership  and that, while developed and 
many developing countries had fully implemented the TFA, some developing and LDC  Members  had 
been facing challenges with full implementation.  In this context, the importance of ensuring technical 
assistance for TFA implementation was stressed.   
3.5.  Members welcomed the presentations and emphasized the need for international cooperation 
among Members as well as greater coherence among international organizations . As part of the 
discussion, it was noted that references  in free trade agreements to circular economy  were made  in 
a rather  general  manner,  and that there were opportunities to engage the National Trade Facilitation 
Committee in the implementation of the Basel Convention. The experience  sharing and thematic 
sessions across WTO Committees were h ighlighted as an opportunity for Members to bring up topics 
of interest to them in the context of circular economy  discussions.   
Developing country and private sector perspectives  
3.6.  The ASEAN  Secretariat provided  a presentation on the ASEAN Framework for Cir cular Economy 
and implementation plan. The Framework aim ed at providing ASEAN members a structured pathway 
to adopt the circular economy model while enabling them to meet their respective carbon emission 
targets under the Paris Agreement. The presentation detailed the five strategic priorities of the 
Framework : (i) standards harmonisation and mutual recognition of circular products and services ; 
(ii) ensuring trade openness and trade facilitation in goods and services ; (iii) enhanced role of 
innovation, digitalization,  and emerging technologies ; (iv) sustainable finance and innovative 
investment ; and ( v) efficient use of energy and other resources. It was also highlighted that the 
ASEAN implementation plan (2023 -2030) contain ed 67 initiatives to  support the agriculture , energy , 
and transport sectors.  
3.7.  A presentation was also made by the Circular Innovation Lab on extended producer 
responsibility (EPR) and the challenges faced by developing countries with used and end -of-life 
electronics. The pres entation was based on a study analysing exports of used electronics from the 
European Union (EU) to Africa  and showed that around 4.3 MT of Used Electrical and Electronic 
Equipment (UEEE) were exported from the EU to Africa every year, resulting in EUR 340 -380 million 
in EPR fee flows as well as significant loss of EPR fees from UEEE exports. In that context, it was 
proposed to extend EU EPR fees to cover end -of-life activities of products shipped outside the EU. 
The presentation also highlighted the object ives and challenges of international trade in used items 
and made several policy recommendations including international collaboration and coordination, 
collection of trade data, improving traceability and technology , and the development of circular 
produc ts. 
3.8.  As part of the discussions, Members  and stakeholders  reacted to the presentations and 
responded to the following questions:  
• What opportunities exist for Members in WTO in the area of trade facilitation to promote 
safe circular trade, including for ele ctronics?  
• How can transparency and traceability, including through labelling and product 
passports, facilitate the transition to a circular economy, including with regard to trade 
facilitation of end -of-life products and addressing waste dumping and manage ment 
concerns?  
• What challenges  related to imports and exports of used or end -of-life electronics do 
exist in developing countries, and how can they be addressed?  
3.9.  Members had substantive discussions on facilitation of safe circular trade and encouraged 
strong international cooperation especially in the areas of standards and international best practices , 
the international adoption of high efficiency technologies, automation,  and paperless customs 
procedures, smooth and streamlined PIC procedur es, policy exchanges , and technical cooperation . 
A whole of lifecycle approach from product design to repair, reuse, collection , and sorting for waste 
management was recommended . Regarding  safe circular trade, Members suggested pre -treatment 
of e-waste bef ore export , communication along the lifecycle between manufacturers and recyclers, 
supporting cross border movement of services essential for waste management , and the formulation 
of international guidelines.  INF/TE/SSD/R/1 9 
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  3.10.  Several Members pointed to the uncertainty ove r sourcing and quality of recycled materials  
as a challenge that hindered the transition to a circular economy , and highlighted the importance of 
transparency and traceability in this regard . Members underlined the potential usefulness of  labelling 
and dig ital tools such as product passports  to identify, track and trace products for enabling  business 
opportunities and value retention activities , including sorting and recycling processes . Some 
Members suggested the possibility of forming an international con sortium to explore and standardize 
these mechanisms, advocated for an open attitude and international mutual recognition in the 
certification of labels and product passports, and encouraged robust data collection and the sharing 
of technological approaches regarding transparency and traceability.  
3.11.  Members identified s ome of the challenges faced by developing countries as including 
establishment of effective recycling and disposal facilities to prevent environmental pol lution  and 
harmful impacts on human health, a large informal waste recovery sector with inadequate working 
conditions, lack of capacity , and the need for technical assistance.  Members considered the role of 
the WTO, particularly through program mes like Aid  for Trade, in developing infrastructure and 
regulatory frameworks through capacity building in developing countries.  Some Members also 
addressed the difficulties arising from inefficient communication between jurisdictions , which create d 
barriers for expo rters.  
3.12.  A representative of the International Chamber of Commerce (ICC) highlighted challenges 
regarding the inconsistent operationalization of PIC procedures , which resulted in shipping delays 
and operational uncertainty. It was further suggested that Memb ers engage in inter - and 
intra-agency dialogue, work towards creating a more enabling regulatory environment for CE -related 
trade, and support the digitalisation of customs procedures  and electronic PIC  procedures . A 
representative from the OECD mentioned their work on CE with respect to online sales, EPR, 
reporting of free -riding, mandatory display of registration , and public private partnerships.  
Mapping exercise  
3.13.  Co-facilitators provided an overview of the draft outcome document of the Mapping Exercise: 
Trade aspects along the lifecycle of products (INF/TE/SSD/W/27), which consisted of three 
substantive sections: (i) an overview of Members' initiatives and experiences aimed at promoting 
the circular economy; (ii) a mapping of measures in the WTO  by the Secretariat from notifications 
and trade policy reviews (TPRs) of the WTO Environmental Database; and (iii) a mapping of trade 
aspects of the circular economy based on presentations, analytical work , and discussions in the 
Working Group. Members we lcomed the document  as covering the multifaceted opportunities that 
lie at the intersection of trade and circular economy initiatives. A  suggestion was made to add a 
table summari zing trade policy  options to pursue in the WTO and outside for Members' consi deration.  
Ongoing activities in other sectors  
3.14.  The Forum on Trade, Environment,  and the SDGs (TESS) briefed on its ongoing work focused 
on convening an expert  group for developing possible guidance on best practices and approaches 
for the design and implementation of trade -related circular economy measures.   
4  Working Group on Environmental Goods and Services (EGS)  – 20 September  (a.m.)4 
Opportunities and approa ches to promote and facilitate trade in goods and services to foster 
renewable energy and help achieve climate objectives  
4.1.  Australia presented on its experience with promoting and facilitating trade in EGS, particularly 
through the Asia Pacific Economic Cooperation (APEC) reference list of environmental services and 
environmental goods and services lists included in the Singapore -Australia Green Economy 
Agreement (SAGEA). Challenges included defining the scope of EGS and the operational challenge  
of how to promote trade in the categori zed EGS.  It highlighted that an approach of non -binding 
indicative lists could be a useful tool and guide discussions on cooperation in areas such as technical 
standards and domestic regulatory regimes. Furthermore, the SAGEA and approaches such as 
 
4 Twelve Members contributed to the discussion s: Brazil, Canada, Chile, China, Colombia, 
European  Union, Norway, Singapore, Switzerland, United Kingdom, United States, and Uruguay . INF/TE/SSD/R/1 9 
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  indicative lists had an important role in signalling policy intent to markets even where liberali zation 
did not occur.  
4.2.  As part of the discussions, Members reacted to the presentation and shared their experiences 
by respondi ng to the following questions:  
• What is your experience or what do you see as possible opportunities and approaches 
to promote and facilitate trade in goods and services that are important for renewable 
energy development?  
• What are opportunities and approa ches, including at the WTO, to address barriers and 
bottlenecks to the dissemination of these goods and services, including in areas such 
as regulatory measures and standards, trade facilitation and market access?  
4.3.  In the context of trade goods , Members' suggestions  for opportunities and approaches included 
the harmonization and mutual recognition of technical standards, trade facilitation measures to 
simplify customs procedures, tariff liberalization  on key renewable energy goods including on  inputs 
to final products to reduce the ir overall cost,  a project -based approach for tariff reductions, tariff 
preferences based on compliance with carbon standards, subsidies to support renewable energy 
products (in a WTO -compliant way), prioriti zation of renewable en ergy goods in public procurement, 
identification of how to facilitate investments in developing countries, value chain and lifecycle 
analys es in identifying environmental goods, and addressing new types of cross border flows in the 
green economy such as gr een financing, transport, connectivity , and carbon trading. A Member also 
pointed to the lack of distinct HS codes as a barrier for dissemination of environmental goods and 
recommended that Members could propose HS amendments to the WCO . Some Members noted  the 
need for a balanced approach regarding the protection of intellectual property rights that allowed 
for sharing of renewable energy technology, especially with developing countries, and the benefits 
of fully implementing WTO agreements, including those  on TBT, Trade Facilitation  and Government 
Procurement. A stakeholder  (TESS)  welcomed the approach of signalling the private sector through 
non-binding indicative lists and suggested the removal of market access barriers on a project -wise 
basis.  
4.4.  Regarding opportunities and approaches to promote trade and address barriers in services  
related to renewable energy , Members  highlighted the importance of promoting good regulatory 
practices for licencing and authorization procedures and improving regulatory transparency related 
to renewable energy services. In this regard, it was noted that disciplines on Services Domestic 
Regulation could promote transparency, predictability and efficiency o f authori zation procedures for 
services providers. The role of the WTO and the value of existing databases by the WTO, the World 
Bank and the OECD for enhancing transparency on services trade barriers was acknowledged.  
Members identified cross -cutting barr iers such as restrictions on foreign investment, movement of 
professionals, non -recognition of qualifications, connectivity and data flows. A Member suggested 
working towards enhancing market access by reducing barriers or by taking binding commitments. 
It was suggested to explore both up- and downstream services needed in the development of 
renewable energy  as well as relevant modes of supply . Some Members suggested to work on 
establish ing a clear scope for environmental services or to formally recognize t hat environmental 
services  went beyond those covered in CPC 94 .  
Developing country perspectives  
4.5.  A representative from WIPO introduced the WIPO GREEN  Platform , which combines a database, 
acceleration projects, partners, and resources , such as the WIPO Green Technology Book, to address 
the knowledge gap between needs and solutions in green innovation and technology. The WIPO 
Green database is a free public re pository on green technologies and needs that  provides for 
automatic  matchmaking  betwee n technology seekers and providers.  The presentation was delivered 
jointly with a representative from the National Institute of Industrial Property Brazil (INPI) who 
provided an overview of Brazil's unique biodiversity, renewable energy dependence, and agricultural 
economy thereby highlighting the importance of innovation for the better use of its natural 
resources. INPI collaborated with WIPO GREEN on acceleration p rojects in Brazil targeting 
biodiversity protection through innovative technologies . The acceleration projects were currently in 
their third phase of implementation and had resulted in 11 business rounds where companies ha d 
been connected with inventors.  INF/TE/SSD/R/1 9 
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  4.6.  UNCTAD  provided a presentation on  insights from the World Investment Report 2023  – 
Investing in Sustainable Energy for All , which,  inter alia , included  that global FDI flows had declined 
by about 12% i n 2022. However, there was an increase in investment activity in SDG sectors as well 
as in developing countries,  although growth in both was unbalanced. Despite the turbulent economic 
environment, sustainability themed investments remained resilient , yet the countries most in need 
of energy investments were noted as being the least successful in attracting energy sector FDI.  It 
was noted that , while there was significant investment in mineral resource extraction, there was less 
investment in processing acti vities. Also, there was a greater need of investment in energy 
infrastructure, rather than renewable energy projects. T he presentation stressed the importance of 
building investor confidence through detailed investment planning in national energy transitio n 
strategies and introduced the Global Action Compact comprising guiding principles for policymaking 
in the energy transition.  
4.7.  EDF Kenya provided a presentation focusing on the challenges and opportunities with 
renewable energy projects in Africa. Some of the challenges  identified were, inter alia , difficulties 
obtaining licences and permits, tariff approvals, lack of operation and maintenance services, 
changing domestic regulations including taxation, price competition, and falling exchange rates. The 
presentation also elaborated on opportunities  in the sector such as those  related to improving the 
regulatory environment, upskilling of workforce, diversifying the economy,  a develop ing financial 
services sector , and growing infrastructural development.  
4.8.  As pa rt of the discussions, Members reacted to the presentations and responded to the 
following questions:  
• What are opportunities for developing countries to participate in renewable energy value 
chains, including for local value addition to renewable energy pr ojects as well as 
exports?  
• How can trade policy and trade -related technical assistance and capacity -building, 
including aid for trade, support developing countries and LDCs  in developing their 
renewable energy sectors and in participating in renewable energy value chains?  
4.9.  Several Members underlined the need for enhancing access to international climate financing 
and strengthening international cooperation to encourage energy  investments in developing 
countries . The importance of technical assistance and capacity building was highlighted, as was the 
need for domestic solutions to attract investments , including  by creating a stable investment 
environment , investing in education  and skills, and address ing certain barriers that discourage d 
cross border capital flows such as constrain ts on accessing foreign currency for repatriation . A 
Member pointed to the recent conclusion of negotiations on the Investment Facilitation for 
Develo pment (IFD) Agreement, which could help developing countries attract foreign direct 
investment. It was noted that trade played a key role in increasing affordability and accessibility of 
renewable energy technologies and related products on a global scale,  and that regional trade 
agreements like the African Continental Free Trade Area (AfCFTA) could create economies of scale 
to foster value chain creation and participation in developing and LDC Members.  
Analytical summary  
4.10.  Facilitators introduce d the revise d draft analytical summary (INF/TE/SSD/W/24/Rev.2) and 
provided an overview of the revisions including the addition of some contextual language to the 
introduction, adaptation of the HS descriptions in the Annex in line with the WTO HS Tracker , and 
resolut ion of some specific comments received from Members following the last meeting. Facilitators 
invited Members to share their views , particularly on the  set of  questions included on the first page 
of the revised draft. Facilitators mentioned that the analytical summary would be revised based on 
the meeting's discussion and possible written comments after the meeting.  
4.11.  Members  welcomed the revised draft and provided suggestions  for its further development. 
It was suggeste d to indicate that the  goods and services  listed in the document were not exhaustive  
and to periodically review their linkages to HS codes, also considering the development of renewable 
energy products and technologies.  A possible future discussion on opportunities related to HS reform 
at the WCO was welcomed . One Member suggested that the section on developing country INF/TE/SSD/R/1 9 
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  perspectives may be further elaborated while underlin ing the importance of being as specific as 
possible in the language on EGS and trade ba rriers.  
5  Working Group on Trade -related Climate Measures – 20 September  (p.m.)5 
Review of carbon measurement standards and measures intended to lead to a reduction in carbon 
emissions in the aluminium sector  
5.1.  The International Aluminium Institute (IAI) presented on  carbon measurement standards and 
decarbonization trajectories in the aluminium industry. The presentation introduced  IAI's Product 
Carbon Footprint Guideline, a single method for reporting on primary aluminium, alumina,  and 
bauxite through a c radle-to-gate approach . IAI's work on GHG data collection and publishing, a s 
well as  its estimated scenarios and pathways for decarbonizing the aluminium sector by 2050  were 
shared . The presentation  highlighted the increase in aluminium GHG reduction proje cts from 16 in 
2020 to 50 in 2022 -2023. 
5.2.  The presentation by Emirates Global Aluminium (EGA) focused on its decarbonization strateg y 
and experience with carbon measurement standards. The presentation provided an overview of 
EGA's activities from mining to primary products, including the generation of aluminium from solar 
power, and its increasing focus on the recycling of aluminium . The overreliance on inefficient data 
management systems was highlighted as a challenge , which EGA  had addressed by launch ing a 
digital monitoring, reporting and verification (MRV) system for automated CO2 data management . 
The presentation  emphasized the role of the mining industry in the energy transition and shared 
EGA's  implementation plans in this re gard including complying with the European Union's carbon 
border adjustment mechanism (CBAM).  
5.3.  As part of the discussions, Members reacted to the presentations and responded to the 
following questions:  
• What trade -related climate measures (TrCMs), including  standards and regulations, are 
Members pursuing to support the decarbonization of the aluminium sector? What are 
the trade and climate implications of such measures?  
• In which ways can carbon measurement standards be used to support the development 
of trad e-related measures aimed at decarbonizing the aluminium sector?  
• How can Members best cooperate with the private sector and among each other, 
including at the WTO, to promote coherence and to maximize both climate and trade 
benefits?  
• What are specific chall enges facing developing countries? How can these be addressed: 
(i) in the standards development stage; and (ii) in the implementation stage when 
measuring process and product emissions?  
5.4.  Members highlighted the importance of decarbonizing the aluminium indu stry, given the 
material's relevance for the energy transition as well as its high energy intensity in production. 
Several Members share d their experience with national standards and regulations aimed at 
supporting decarbonization in the aluminium sector and acknowledged the need for regulatory 
alignment. In this context, the development of international carbon measurement standards was 
encouraged to reduce trade  barriers, facilitate identification of emission hotspots,  and decarboni ze 
the most polluting sectors. Dedicated funding and collaboration between the public and private 
sectors were noted as the key to technological advancement , including  renewable energy  
substitution and material substitution , to expedite the transition to sustainable production in the 
aluminium sector. Some Members recommended enhancing investment in new and emerging 
technologies such as carbon capture and storage as well as carbon dioxi de removal, and providing 
incentive -based measures like preferential market access for aluminium conditional on meeting 
decarbonization standards.  
 
5 Fourteen Members contributed to the discussions: Australia, Brazil, Canada, China, Ecuador, European 
Union, Japan, Norway, Paraguay, Switzerland, Türkiye, United Kingdom, United States, and Uruguay.   INF/TE/SSD/R/1 9 
- 10 - 
  5.5.  Regarding international cooperation, including at the WTO, Members suggested sharing  
practices and experience s in the Committee on Trade and Environment (CTE), as well as using the 
Committee on Technical Barriers to Trade (TBT Committee) to contribute to coordination and 
coherence of technical regulations, specific standards, conformity assessment procedures, and  
proposed regulations. One Member highlighted that the principle of common but differentiated 
responsibilit ies (CBDR) be considered while applying international energy saving and carbon 
reduction standards. Some of the challenges identified include d difficulty in collecting carbon 
emission s data and information along  the value chain due to inadequate technology and regulatory 
infrastructure; the reduction of emissions while promoting economic growth and poverty alleviation; 
and lack of knowledge, skilled experts,  and capacity, particularly for small and medium enterprises. 
As for addressing the challenges faced by developing Members, it was recommended to strengthen 
technical assistance  and capacity building , financial support, cooperation between Members , and 
engagement with relevant international organi zations.   
Exchange on the development and implementation process of trade -related climate measures  
Principles and good practices for TrCMs  
5.6.  The Forum on Trade, Environment & the SDGs (TESS) shared a presenta tion on principles of 
international law relevant for consideration in the design and implementation of TrCMs. The 
six principles of : (i) sovereignty; (i) prevention; (iii) cooperation; (iv) prohibition of arbitrary and 
unjustifiable discrimination; (v) sus tainable development, equity and CBDR; and (vi) transparency 
and consultation could contribute to TrCMs that are WTO -compatible, development -friendly,  and 
effective in their climate ambition. TrCMs were considered as legal hybrids subject to multiple legal  
regimes and coherence between them was encouraged.  
5.7.  Members engaged in substantive discussions as to the relationship between international trade 
and environment legal regimes. While some Members emphasized the principle of CBDR as a distinct 
principle re levant in designing TrCMs, others underscored that WTO law already reflected the 
principle through special and differential treatment (SDT) and encouraged discussions within the 
WTO context. Concerns against taking legal principles out of the context of th eir negotiation due to 
the risk of potentially varied interpretations were raised by a few Members and  a more practical, 
solution -oriented approach was advocat ed. A number of  Members recognized the valuable 
contribution of the presentation to the debate an d the existence of WTO law in a larger international 
law framework.  
5.8.  The International Institute on Sustainable Development (IISD) shared a presentation on border 
carbon adjustments (BCA) focusing on key design elements and the potential for international 
cooperation. The presentation provided an overview of design features relevant to BCA policies such 
as geographic scope, emissions scope, calculation of emissions, crediting of foreign policies, and use 
of revenues . It also highlighted related consideratio ns including domestic and partner's capacity to 
implement, transition period and reviews, impact on trade flows , and preferences . The presentation 
stressed on  the importance of cooperation on different design features.  
5.9.  Several Members acknowledged the growing prevalence of BCAs and the need to engage in 
dialogue at an international level  to identify best practices and policy considerations relating to the 
preve ntion of carbon leakage . It was suggested  that the trade regime must cohesively support 
climate goals while ensuring that the rights of Members, particularly developing countries, under 
both the environment and WTO regimes were preserved. The importance of  transparency and 
openness among Members was underscored and it was suggested to work towards compatibility of 
different national systems as exact alignment was not feasible due to differing national 
circumstances. One Member also recalled the need to be i nclusive towards small businesses in 
creating carbon leakage policies.  
5.10.  The International Trade Centre (ITC) provided an update on its EU-funded Climate 
Competitiveness Project (2023 -2025) , which aimed at increasing the engagement of developing 
countries in  the trade and environment discussions at the WTO. Participating countries included the 
Dominican Republic and Ecuador, Mauritius, Kenya and Senegal, and the Philippines and Viet  Nam. 
Implementation would start in the fourth quarter of 2023 , and work would  aim to identify trade 
barriers to EGS, to empower MSMEs to comply with TrCMs, and support  countries in preparing 
strategies and raising awareness around the trade and climate nexus.   INF/TE/SSD/R/1 9 
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  Draft outcome document  
5.11.  Facilitators introduced the revised draft on Memb er practices in the development of TrCMs 
(INF/TE/SSD/W/25/Rev.1) , which provided for consolidated list s of Member s' practices grouped  
under four categories , namely : (i) transparency and consultations ; (ii) impact assessments ; (iii) a 
review following implementation ; and (iv) principles guiding the policymaking of TrCMs. Members 
welcomed the draft as a reflection of the discussions to date and provided  some specific comments 
as to the structure. It was recommended that the rule s stemming out of the trade and environment 
regimes should be separated in writing as such, so as to prevent unnecessary debate on their 
interpretation. Members expressed their interest in engaging further through written comments as 
invited by the facilitators.  
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