INF/TE/SSD/R/14  
 
30 November 2022  
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TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS  
SUMMARY REPORT 20221 
Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  2 
2   TRADE -RELATED CLIMATE MEASURES  ................................ ................................ .........  2 
2.1   Interests and approach  ................................ ................................ ..............................  3 
2.2   Transparency and experience sharing  ................................ ................................ ...........  3 
2.3   Carbon pricing and pricing of embodied emissions  ................................ ..........................  4 
2.4   Carbon standards and other trade -related climate measures  ................................ ............  6 
2.5   Stakeholder inputs  ................................ ................................ ................................ ..... 7 
3   ENVIRONMENTAL GOODS AND SERVICES ................................ ................................ .... 7 
3.1   Interests and approach  ................................ ................................ ..............................  8 
3.2   Climate action  ................................ ................................ ................................ ...........  9 
3.2.1   Renewable energy  ................................ ................................ ................................ .. 9 
3.2.2   Non-tariff measures  ................................ ................................ ................................  9 
3.3   Services  ................................ ................................ ................................ ..................  10 
3.4   Stakeholder inputs  ................................ ................................ ................................ .... 11 
4   CIRCULAR ECONOMY – CIRCULARITY  ................................ ................................ ....... 11 
4.1   Interests and approach  ................................ ................................ .............................  12 
4.2   Private sector experiences  ................................ ................................ .........................  12 
4.3   Transparency and experience sharing  ................................ ................................ ..........  13 
4.4   Trade -related policy issues  ................................ ................................ .........................  15 
4.5   Stakeholder inputs  ................................ ................................ ................................ .... 16 
5   SUBSIDIES  ................................ ................................ ................................ ................  16 
5.1   Interests and approach  ................................ ................................ .............................  17 
5.2   Transparency and methodology of data  ................................ ................................ ....... 18 
5.3   Stakeholder inputs  ................................ ................................ ................................ .... 19 
6   FURTHER DISCUSSIONS HELD IN PLENARY MEETINGS  ................................ .............  19 
 
 
  
 
1 This summary  report , prepared and circulated under the TESSD Coordinators' responsibility, provides 
a non -exhaustive summary of discussions held in plenary and informal working group meetings in 2022 . INF/TE/SSD/R/14  
 
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  1  INTRODUCTION  
1.1.  Following the launch of the TESSD Ministerial Statement ( WT/MIN(21)/6/Rev.2 ) in December 
2021, co -sponsors agreed on the TESSD Work Plan in February 2022 ( INF/TE/SSD/W/17/Rev.1 ). In 
the Work Plan, co -sponsors, inter alia , agreed to advance work intersessionally in four informal 
working groups on trade -related climate measures, environmental goods and services, circular 
economy – circularity, and subsidies.2 TESSD currently counts 74 co -sponsors, including three 
co-sponsors that joined in 2022 – Tajikistan in May, and Brazil and the United Arab Emirates during 
the Twelfth WTO Ministerial Conference in June.  
1.2.  In 2022, TESSD held four plenary meetings on 7 Febru ary, 31 March and 11 April, 19 -20 July 
and 11 November, as well as two clusters of informal working group meetings on 19 -20 July and 
4-5 October. This Report provides a  non-exhaustive summary  of discussions held in each of the four 
working groups and plena ry meetings organized by thematic work area and is based on Members' 
statements as well as the summary reports prepared for the above meetings.  
2  TRADE -RELATED CLIMATE MEASURES   
2.1.  Guidance for discussions  on trade -related climate measures (TRCMs) was provided by the 
Ministerial Statement as well as the following guiding questions included in the Work Plan:  
• What trade -related climate measures and policies are Members pursuing and what are their 
trade implications?  
• Can we identify best practices in the development of trade -related climate measures and 
policies to maximize climate and environmental benefits wh ile also maximizing trade 
benefits?  
• What are the challenges facing MSMEs globally and for developing countries with regard to 
the design and use of trade -related climate measures and policies, and how can these be 
addressed?  
 
2.2.  The thematic area of TRCMs wa s discussed in the following plenary and working group 
meetings. In the plenary meeting on 31 March, Members considered two presentations by the 
Secretariat on types of TRCMs and information included in the WTO Environmental Database (EDB), 
as well as on a  workshop on trade and climate change modelling among international organizations. 
Members shared their experiences on TRCMs and indicated their priorities for discussion in the 
informal working group. In the working group meeting on 17 May, Members heard presentations by 
the World Bank on explicit and implicit carbon pricing, and the United Nations Industrial Development 
Organization  (UNIDO ) on the Industrial Deep Decarbonisation Initiative . Members also  continued 
their discussions on priorities for the wo rking group, shared experiences on their TRCMs and 
considered challenges facing MSMEs and developing countries.  
2.3.  At the plenary meeting on 19 July, Members exchanged views on the elements they considered 
important to be addressed by the working group. In t he working group meeting on 4 October, 
Members discussed issue s related to carbon pricing with presentations by the Secretariat, the 
International Monetary Fund (IMF) and the Organisation for Economic Co -operation and 
Development (OECD). At that meeting, M embers also heard a briefing by Germany on the G7 climate 
club initiative, and exchanged views on carbon standards, considering a presentation by the 
International Organization for Standardization (ISO) and a briefing by United States on a Trade and 
Climate Roundtable . 
  
 
2 The TESSD Co-Convenors are:  Canada (Ambassador Nadia Theodore from July 2022 onwards; 
Ambassador Stephen De Boer until July 2022) and Costa Rica (Ambassador Ronald Saborío from July 2022 
onwards; Ambassador Gloria Abraham Peralta until July 2022).  The Facilitators of the Working Groups  are: Carlos 
Guevara (Ecuador) and Helga Helland (Norway) for the Working Group on Environmental Goods and Services; 
Jean-Marie Meraldi (Switzerland) and Göksu Tülümen (Türkiye) for the Working Group on Tra de-related Climate 
Measures; Olivia Cook (Chile) and Kazunari Morii (Japan) for the Working Group on Circular Economy – 
Circularity; and Sveinn K. Einarsson (Iceland) and Mariana Vera (Uruguay) for the Working Group on Subsidies.  INF/TE/SSD/R/14  
 
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  2.1  Interests and approach  
2.4.  Members exchanged views on their priorities for discussion at several meetings during the 
year, highlight ing the importance of international cooperation on TRCMs , including regarding  design 
and implementation . Several  Members expressed interest in discussing the trade aspects of different 
types of measures, including carbon pricing, carbon standards and other non -price measures,  as 
well as approaches to address carbon leakage, including border carbon adjustments.  Other Members 
expressed concerns regarding  discussions on carbon pricing and carbon leakage. Members also 
underlined the need to discuss challenges and impacts faced by MSMEs and developing countries , 
including ways to enhance cooperation on TRCM in a manner consistent with the respective needs 
and concerns of Members  at different levels  of economic development , as well as related technical 
assistance and capacity -building  needs.  
2.5.  More specific elements of interest mentioned by individual Members or groups of Members 
included : definitions and principles for TRCMs , their compatibility with WTO  rules and principles,  
their compatibility with Multilateral Environmental Agreements (MEAs),  best practices regard ing 
design and implementation of TRCMs, the comparability and compatibility of carbon pricing  and 
non-pricing measures , methodologies for the measurement of embedded emissions of traded goods, 
trade facilitation concerning technology and innovation,  and the importance of considering different 
national circumstances relating to carbon pricing .  
2.6.  Members also considered a discussion paper (INF/TE/SSD/W/19) by the United States, which  
reflected its interest in discussing both the measurement of emissions in tra de as well as policies to 
address emissions in trade and incentivize decarbonization. The paper also emphasized the nexus 
between discussions on climate change , circular economy, and environmental goods and services . 
2.7.  Regarding possible future work,  a number of Members suggested to advance discussions on 
TRCMs in a more concrete and targeted way, for instance through a sector -specific mapping and 
discussion of carbon measurement standards and measures intended to lead to a reduction in carbon  
emission s. It was also suggested to exchange views on the development of trade -related climate 
measures . Members raised various aspects for consideration  including : how such measures could be 
designed in the least trade -restrictive way , how they could  be supportiv e of developing countries' 
needs and circumstances , as well as underlying domestic policy objectives . Members also suggested 
that TESSD could strengthen cooperation with other WTO  bodies such as the Committee on Technical 
Barriers to Trade  (TBT Committee) on standards and the Committee on Trade and Environment 
(CTE) on transparency. Other suggestions  made by certain Members  included making use of a 
questionnaire regarding carbon pricing and non -pricing approaches , and to have discussions 
regarding basic pri nciples for the design and implementation on TRCM . Some Members noted that 
the discussions should reflect  existing rules and principles under the WTO , some Members further 
suggested that discussions should touch on  MEAs. 
2.2  Transparency and experience sharing  
Presentations  
WTO Secretariat – Overview of types of TRCMs and information included in the WTO 
Environmental Database (EDB)  
Between 2009 and 2020, 4,629 TRCMs were notified to the WTO, relating to one or more of the 
following objectives: alternative and renewable energy (1,551 measures), energy conservation 
and efficiency (1870), climate change mitigation and adaptation (897), air pollution reduction 
(839), ozone layer protection (473), and afforestation/reforestation (184). In  terms of types of 
measures, the most common were technical regulations (33% of TRCMs), grants and direct 
payments (26%), and conformity assessment procedures (13%). TRCMs can be categorized 
into: (i) climate requirements that condition market access; (ii)  price and market mechanisms; 
and (iii)  support and financial programmes.  
 
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  2.8.  Members  shared information on a number of TRCMs  and policies  they were  pursuing : 
Member  Pursued measures and policies  
Canada  Carbon pricing  aiming to progressively increase the price of carbon while 
mitigating risks of carbon leakage, and consultations on a possible border 
carbon adjustment.  
Japan  Green Transformation League Voluntary corporate GHG emissions 
reduction initiative to promote g rowth covering 40% of national emissions.  
Chile National carbon tax on energy an d industry sectors, and its ongoing revision.  
Chile Huella Chile (Footprint Chile)  programme, related to the ISO 14064 -1 
standard , uses emission factors approved by the Mini stry of Environment to 
provide different labelling options to companies relating to quantification , 
management,  and reporting of emissions.  
Switzerland  Preferential market access for compliance with sustainability 
standards granted to Indonesian palm oil in the framework of the regional 
trade agreement between EFTA and Indonesia.  
Switzerland  Tax relief on biofuels to reduce CO 2 emissions in the transport sector  
granted to importers and exporters according to compliance with sustainability 
requirements . 
China  National carbon market launched in July 2021.  
European Union  Update on the implementation of CBAM and legislative steps ahead of 
adoption of the measure.  
Türkiye  Roadmap to achieve carbon neutrality by 2053  including 
recommendations on GHG reductions, green finance, carbon pricing, 
adaptation, migration, science and technology, and social policies to achieve a 
just transition . 
Kingdom of 
Saudi Arabia  Update on the Saudi Green Initiative and Middle East Green Ini tiative 
aiming to deploy low carbon technologies with regional partners and 
multilateral development banks.  
United Kingdom  Update on national emissions reduction target  by 78% by 2035, and 
specific measures to cut emissions across the economy.  
 
2.3  Carbon pricing and pricing of embodied emissions  
Presentations  
IMF – Possible design and implications of international carbon price floors  
The presentation by the IMF covered possible design and implications of international carbon price 
floors and related transfer mechanisms, as well as potential macroeconomic effects, including 
significant global CO 2 emissions reductions and limited impact on growth.  
OECD  – Recent and ongoing work on carbon pricing  
The presentation covered the OECD's proposition to launch an Inclusive Forum on Carbon 
Mitigation Approaches, which would create inventories of climate policies and how these compared 
and met commitments, as well as its analysis of effective carbon rates, which took into account 
carbon taxes, specific taxes on fuel use, and emissions trading schemes.  
WTO Secretariat  – Trade -related implications of different carbon pricing approaches based on 
findings from the World Trade Report 2022  
Findings suggested that a global carbon price would be most efficient, while carbon prices varying 
by regions would be more reflective of equity considerations relating to the common but 
differentiated responsibilities (CBDR) principle. The presentation furthermore covered the 
economic advantages and disadvantages of border carbon adjustments and the importance of 
international trade coopera tion. INF/TE/SSD/R/14  
 
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  Presentations  
WTO Secretariat – Briefing on Trade and Climate Change Modelling Workshop  
On carbon pricing, research suggested that global carbon pricing was economically and 
environmentally best but difficult to achieve, and that border carbon adjustment policies could 
tackle carbon leakage and loss of competitiveness but came with a number of challenges such as 
possible limited impact on incentivizing carbon pricing in partner countries, creation of trade 
distortions, and difficulties in accoun ting for non -price-based regulations.  
World Bank – Measuring  and comparing carbon pricing and the pricing of embodied and transport 
emissions  
Carbon could be priced implicitly or explicitly to accommodate different country priorities and 
industrial polici es. It was noted that countries which significantly priced carbon could successfully 
reduce carbon intensity, and that some developing countries had carbon prices not much lower 
than developed countries with explicit carbon pricing. Pricing the carbon cont ent of production or 
transport did not necessarily require a global measurement, reporting, and verification (MRV) 
system. Most countries were not found to price carbon explicitly.   
Germany  – G7 initiative to establish a climate club  
Efforts to create a h igh-level intergovernmental forum to accelerate climate action and ambition 
in the industrial sector, with the objective of launching a climate club by the end of 2022. 
Sector -specific roadmaps would be launched to support the phase out of high emission 
technologies and work to expand green markets. The forum or "climate club" would be open to 
interested countries.  
 
2.9.  Members engaged in discussions on carbon pricing policies, including the role of the WTO. A 
number of Members underlined the importance that c arbon pricing and related measures to address 
carbon leakage , such as border carbon adjustments , be consistent with WTO rules and principles.  
Some Members also underlined the need to ensure consistency with MEAs . The role of the WTO as 
a forum for policy dialogue and coordination was recognized, along with other international 
organizations. It was suggested that the WTO could add value from a trade perspective while some 
Members stressed that it was important  not to duplicate work being done in other fora. It was 
suggested that the CTE could provide a space for transparency and dialogue on how TRCMs could 
be designed to achieve climate goals while preventing conflicts or lack of coherence.  Regarding the 
G7 initiativ e to establish a climate  club, mentions were made that a climate club should adhere to 
WTO rules and follow a  cooperative  approach.  
2.10.  Members also exchanged views on the relationship and differences between carbon pricing 
and other decarbonization policies . Some  Members engaged in substantive discussions on the role 
of regulatory and other non -price policies for pursuing decarbonization , with a number of Members 
pointing to  the need for a tailored policy mix to achieve their climate goals. A number of Members  
also pointed to the importance of taking into account implicit carbon pricing, while methodological 
difficulties in calculating carbon price equivalents were recognized.  
2.11.  Members also highlighted possible challenges  faced by developing countries in adjusti ng to 
carbon pricing policies  and related measures . Several developing Members stressed  the need to 
consider national circumstances  and the principle of CBDR  in the design and implementation of such 
measures . The need for technical and financial assistance  was underlined, and mention was made 
of the potential of international emissions credits as a source of climate financing for developing 
countries with large emissions reduction potential .  
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  2.4  Carbon standards and other trade -related climate measures  
Presentations  
UNIDO  – Industrial  Deep Decarbonisation Initiative (IDDI) and Global Program for Green 
Hydrogen in Industry  
The IDDI aimed to stimulate public and private demand for low -carbon steel and cement through 
standardisation of carbon asse ssments, green procurement targets, and data collection and 
emissions reporting. Three solutions could develop industrialization powered by clean energy, 
including hydrogen: (i) accelerating the shift of industry away from fossil fuels; (ii) enabling 
decision makers to chart a low carbon path to economic progress; and (iii) fostering the rise of 
local entrepreneurs and innovators.  
ISO – International carbon accounting standards, principles, requirements and guidelines for the 
quantification and reporting o f the carbon footprint of a product  
Standards specify principles and requirements for GHG inventories for organizations, for projects 
aimed at GHG emission reductions, and the quantification of carbon footprint (CFP) of a product 
considering its entire lif ecycle. Different product category rules reflect the need for 
product -specific approaches to quantify CFP, while a common approach is followed regarding 
verification and accreditation where a standard is verified by an accredited verification body.  
Unite d States – Trade and Climate Change Roundtable  
Discussion on non -pricing measures to address climate change. Elements raised included 
recognition of the diversity of priorities, the need for strategies to engage across income levels 
and MSMEs, and to ensur e that global standards were relevant for countries at different stages of 
development. Members expressed interest in considering how the CTE and TBT Committees could 
contribute to more transparency and to build a common understanding and encourage 
converg ence. There was recognition that a sectoral approach, starting with the highest emitting 
sectors, could help focus attention on the question of carbon measurement and how best to 
consider divergences across standards.  
 
2.12.  Several  Members expressed interested  to delve deeper into analysing carbon standards and 
methodologies for the measurement of embedded emissions of traded goods . It was highlighted that 
the proliferation of different standards as well as labelling and recognition requirem ents could 
increase the cost for companies, particularly MSMEs. The work in the TBT Committee and the 
TBT Committee 's Six Principles regarding the development of international standards w ere 
highlighted as important in this regard . Besides the importance o f moving to international standards, 
it was noted that Members should be able to formulate domestic standards in light of their national 
circumstances, and actively promote the mutual recognition of carbon accounting standards.  
2.13.  In both working group meetin gs, Members addressed the question on challenges for MSMEs 
and for developing countries regarding  carbon standards and other TRCMs  and policies and how  
these could be addressed . 
2.14.  Members pointed to the particular challenges MSMEs might face in quantifying t heir carbon 
emissions and meeting an increasing number of different standards, labelling and conformity 
assessments requirements in export markets. Japan  shared its  national initiative to set up 
consultation windows for experts to advise MSMEs on decarboni zation and plans to introduce 
IT systems to facilitate the measurement of emissions for MSMEs .  
2.15.  Members also pointed to resource and expertise constraints of developing countries in 
measuring carbon footprint and meeting regulatory requirements, which coul d prevent 
lower -emission products from benefitting from lower fees or restricting exports altogether. Members 
discussed targeted technical assistance and capacity building. Some Members noted t he need  to 
identify specific challenges facing developing countries to guide targeted technical assistance  and 
capacity building . Members considered  the role that Aid for Trade could play in mobilizing funding 
and targeting support for LDCs and MSMEs to address c limate change.  Another element raised in 
discussions was the need for TRCMs and related regulatory approaches to take into account the 
limitations and national circumstances of developing countries . INF/TE/SSD/R/14  
 
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  2.5  Stakeholder  inputs  
2.16.  Stakeholders contributed to the discus sions through presentations and interventions in the 
discussions. Interventions highlighted  efforts to promote engagement, understanding, and actions 
on trade and climate change , inter alia, through projects such as the International Trade Centre 
(ITC) SME  Competitiveness Outlook 2021, which focused on empowering the green recovery, the 
ITC Standards Map, which was the world's largest database on voluntary sustainability standards, 
UNIDO's Industrial Deep Decarbonization Initiative (IDDI) aiming at decarbon izing heavy industry 
through production standards and reporting systems, or the OECD's Inclusive Forum on Carbon 
Mitigation Approaches (IFCMA) aiming to exchange information on efforts to reach net -zero 
emissions, which would include a stocktaking of curre nt measures and their effectiveness. The Forum 
on Trade, Environment and the SDGs (TESS) noted plans to support LDCs in their work on trade and 
environment. It was suggested that  TESSD  could reflect on strengthening transparency and access 
to information o n standards through programmes such as Aid for Trade, to support participation  in 
sustainable trade , reduce costs of carbon accounting, and compliance  with standards and regulations 
related to the carbon footprint of products.  
3  ENVIRONMENTAL GOODS AND SERV ICES   
3.1.  Guidance on discussions  on environmental goods and services (EGS) was provided by the 
Ministerial Statement as well as the following guiding questions included in the Work Plan:  
• How can trade in environmental goods and services aid in achieving envir onment and climate 
goals?  
• What are the opportunities, best practices, and possible approaches for promoting and 
facilitating trade in environmental goods and services to meet environmental and climate 
goals, including through addressing supply chain, techn ical and regulatory elements, 
promoting and facilitating access to and uptake of new and emerging low -emissions and 
other climate friendly technologies, and attention to issues of particular interest to 
developing countries?  
• What challenges and policies im pede the ability of developing countries and LDCs to engage 
in and maximise benefits from trade in environmental goods and services and how can these 
be addressed?  
 
3.2.  The thematic area of EGS was discussed in the following plenary and working group meetings.  
In the plenary meeting on 31 March, Members considered a Secretariat  Note (INF/TE/SSD/W/18) 
on experiences in the promotion and facilitation of trade in EGS  and indicated their priorities for 
discussion in the informal working group. In the working group meeting on 17 May, Members had a 
more in -depth discussion on their priorities regarding environmental objectives , as well as on the 
approach and scope of discussions. At that meeting, Members also had a first informational  
discussion on climate mitigation and renewable energy, considering also a presentation by 
International Renewable Energy Agency (IRENA) on the renewable energy sector.   
3.3.  In the plenary meeting on 19 July, Members considered a presentation on TBT by the 
United  Kingdom, and continued discussions on the approach to be taken as well as on elements to 
be included in the work. In the working group meeting on 4 October, Members continued discussions 
under the objective of climate action, with an increased focus on non -tariff measures, considering 
presentations by the WTO Secretariat and Uruguay. Members also discussed environmental services, 
considering presentations by the WTO Secretariat and the Asia-Pacific Economic Cooperation (APEC) 
Secretariat.  
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  3.1  Interests and ap proach  
Presentations  
WTO Secretariat  – Presentation of factual note on experiences and efforts in EGS 
(INF/TE/SSD/W/18)  
The note focused on experiences in the WTO and outside covering the objectives and scope of the 
various initiatives. The note also discussed experiences related to the identification of EGS, tariff 
treatment and non -tariff barriers, as well as a number of challenges and views that have been 
raised. The note also provided a summary of selected research on trade effects, diffusion of 
environmental technology, and environmental effects of trade in EGS.  
 
3.4.  Members broadly supported the idea to  follow a n objective -based  approach, where Members 
would discuss objectives and sectors sequentially to allow for more focused discussions. Other 
suggestions that were discussed included to build a common understanding of definitional elements 
as a first step.  
3.5.  A significant part of the discussions focused on Members' priorities in terms of objectives and 
sectors, and their views on how trade i n environmental goods and services could achieve climate 
and environmental goals. Objectives related to climate change mitigation and adaptation were 
mentioned most frequently by Members. Members underlined that t rade in EGS could  contribute to 
the reducti on of GHG emissions and the achievement of climate goals under the Paris Agreement, 
including by supporting the uptake of technologies for the climate transition . Different Members 
highlighted technologies  such as renewable  and other  low-carbon energy and climate change 
adaptation and mitigation  technologies , including  carbon capture.   
3.6.  Other objectives mentioned, inter alia , included clean air and clean water  (reduction of 
pollution) , protection of biodiversity and ecosystems , transition to a circular economy  and circularity , 
sustainable management and protection of water and marine resources.  It was also suggested to 
identify priority sectors , and possibly important goods and services,  based on their contribution to 
agreed environmental object ives. 
3.7.  Members broadly agreed that discussions on environmental goods and services should have a 
broad scope.  Members , inter alia , expressed interest to discuss non -tariff measures, regulatory 
cooperation, good regulatory practices, technology transfer, cap acity building, biotrade, bottlenecks 
to the  deployment of new technologies  throughout the supply chain , and to  take into account the 
entire lifecycle  for the determination of environmental goods.  
3.8.  Several  Members also expressed interest to discuss environm ental services, underlin ing the 
need to ensure that  discussions in TESSD buil t on those in the Special Session of the Council for 
Trade in Services (CTS-SS). Some other  Members suggested  that discussion s on market access 
should be continued under the CTS -SS to not duplicate work . Suggest ions included to pursue 
discussions on services in a parallel track to environmental goods , and to discuss services together 
with goods in a manner in which they would be mutually supportive and contribute to achieving 
environmental objectives.  
3.9.  Regarding possible priorities or outcomes going forward, some Members had  expressed interest 
in further building a common understanding of the challenges hindering the dissemination  of EGS , 
while other Members had expressed interest in  designing a framework for negotiations in view of a 
specific environmental objective or challenge . Several Members emphasized  that discussions should 
include considerations of challenges for developing countries. The importance of capacity building, 
aid for trade, and facilitating trade and investment in technologically advanced products was 
recognized. A Member suggested that a holistic approach recognizing different transitio n pathways, 
including by using all available technologies, should be considered. Another  Member suggested that 
discussions should cover technology transfer for agricultural technologies  needed  for climate change  
adaptation.  
3.10.  Regarding possible future work , Members broadly agreed to continue with a n objective -based  
approach focusing on climate adaptation and mitigation as the first objective, and renewable energy  
as first sector  to be covered under this objective . A number of Members suggested focus ing meetin gs 
on specific sectors to allow for more structured and deeper discussions. Interest was expressed to INF/TE/SSD/R/14  
 
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  pay particular attention to developing country interests, in particular regarding technology transfer 
and capacity building , and continue work on non-tariff measures (NTMs ), including on  identify ing 
trade-related bottlenecks and trade -facilitating measures , as well as enhancing transparency and 
experience sharing . Regarding services, a  number of Members expressed interest in identifying areas 
where environm ental and related services could play a meaningful role for climate change mitigation 
and adaptation . Some Members also suggested to map services based on their intrinsic contribution 
to address climate change challenges or their complementarities with climate-friendly goods.  
3.2  Climate action  
3.11.  Members identified climate action as the priority objective for discussions, with working group 
meetings having first discussions on the renewable energy sector and non -tariff measures.  
3.2.1   Renewable energy  
Presentations  
IRENA  – Trade-related challenges and opportunities  for developing countries in the renewable 
energy sector to achieve climate objectives  
Internationally harmonized infrastructure is needed to facilitate the trade of renewable 
technologies. Countries should ensure the availability of complemen tary services and common 
standards for installers, operators, and technicians. Trade and trade policy could foster further 
cost reductions, deployment of renewable energies, and job creation.   
Uruguay – National experience in the development of its renewa ble energy sector  
Experience in the historical development of hydroelectric power and recent efforts to promote 
alternative renewable sources including, biomass, wind, and solar power, as well as in accessing 
technology and addressing NTMs . 
 
3.12.  Members share d their experience s regard ing challenges and opportunities  of trade in EGS, 
noting their efforts and ambitions to increase the shares of renewable energy in the energy mix. 
Members raised a number of elements they considered important regarding supply chains, 
technology, se rvices, and technical and regulatory elements . Elements raised, inter alia, include a 
whole of lifecycle approach in the consideration of the environmental benefits of a good; market 
access for goods, services and investment; technology access and developm ent; infrastructure 
quality and interoperability; non -tariff barriers and regulatory issues; transparency and predictability 
of rules, and policies to encourage the uptake of renewables such as market requirements, tax 
incentives, green public procurement,  public private partnerships, and support schemes.  
3.13.  Members also raised a number of issues relating to the ability of developing countries and 
LDCs to engage in and maximize benefits from trade in environmental goods and services . Issues 
mentioned, inter alia, include the benefits of South -South cooperation; lack of technical and 
regulatory capacities; the need to build institutional infrastructure and policy for clean technologies; 
the promotion of sustainable supply chains and c hallenges with sustainability standards; the need 
to promote fair and equal access to trade and investment in technologies; the need for transfer of 
technology and skills, as well as technical assistance.  
3.2.2   Non-tariff measures  
Presentations  
WTO Secretaria t – Overview of non-tariff measures (NTMs ) related to climate change and 
relevant work in the WTO  
Overview of NTMs, linkages to climate change and relevant work in the WTO. NTMs vary according 
to products and markets. Stakeholders can contribute in identif ying possible positive and negative 
impacts of NTMs. Work in the TBT Committee, including through strengthening transparency and 
regulatory dialogue, can ease the burden of conformity assessment procedures.   INF/TE/SSD/R/14  
 
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  Presentations  
United Kingdom – Impact of technical barriers to trade (TBT) on environmental goods  
Through case studies on components for wind turbines and solar panels, the presentation 
highlighted that: (i) technical barriers decreased trade in environmental goods but with varying 
impacts depending on the exporting and importing countries; (ii) incidences of duplication or 
divergence led multiple importing Members to impose similar technical requirements to the 
exporting country; and (iii) that high levels of regulation reduced the num ber and diversification 
of trade flows in environmental goods. The presentation gave suggestions for facilitating trade in 
environmental goods.  
 
3.14.  Members pointed to a number of NTMs and related issues they considered to hinder trade in 
EGS aimed at climat e action . Issues raised, inter alia , include possibly costly technical barriers , 
differences in definitions, standards and technical regulations, including for new technologies such 
as hydrogen, lack of alignment of regulatory requirements, differing conformity assessment 
procedures for goods and services, data challenges for understanding market opp ortunities, 
difficulties to identify environmental goods  in the HS System, particularly for new technologies,  and 
local content requirements related to subsidies to renewable energy.  
3.15.  Members also pointed to opportunities, best practices and possible approa ches to address 
these NTMs to promote and facilitate trade in environmental goods and services to meet climate 
goals, including access to and uptake of climate -friendly technologies . It was, inter alia , suggested 
that trade in EGS could be facilitated by s trengthening  international cooperation in harmonizing or 
aligning definitions, standards and regulations ; attracting investment in climate -related technologies 
to developing countries ; technology transfer and participation in global value chains ; enhancing  
engagement with customs exports and drawing on lessons from Information Technology Agreement 
regarding the identification of environmental goods in the HS System;  encouraging research and 
development ; strengthening transparency efforts and information sha ring in the WTO , as well as 
developing voluntary guidelines for ecolabelling programmes pursued in the Agreement on Climate 
Change, Trade and Sustainability (ACCTS) ; taking a  balanced intellectual property rights approach 
regarding low-emissions technology  transfer.   
3.3  Services  
Presentations  
WTO Secretariat  – Briefing on the work carried out on trade in environmental services in the 
Special Session of the Council for Trade in Services (CTS -SS) 
Update on past discussions and recent proposals by Members to broaden the scope of 
environmental services to those with positive environmental outcomes.  
APEC Secretariat – Experiences and activities to promote trade in environmental services in the 
APEC region  
Advancement of discussions in the Asia -Pacific region th rough a non -binding reference list of 
environmental and environmentally related services and ongoing efforts to develop a model 
schedule for environmental and environmentally -related services.  
 
3.16.  Members referred to regional experiences and approaches in t he promotion of trade in 
environmental services . The European Union presented the list of environmental services included 
in the recent EU -NZL FTA . The list contains, among others, services which,  when supplied in 
conjunction with environmental goods, are relevant to address climate change, reflecting the 
complementarity between goods and services in environmental projects and representing a technical 
solution to avoid dual -use challenges. Iceland mentioned that outcomes from ACCTS negotiations 
regarding th e classification of environmental services would provide important inputs to future work 
in TESSD.  
3.17.  Canada and New Zealand pointed to the APEC Reference List of Environmental and 
Environmentally Related Services as a valuable resource that could be tailored  to national 
circumstances when negotiating FTAs, and a useful starting point for further work in TESSD. China 
shared information on its annual International Fair for Trade in Services (CIFTIS), which served as 
a window for the opening of its services sect or and newly covered environmental services, including INF/TE/SSD/R/14  
 
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  low-carbon energy, climate change and carbon economy, carbon neutrality and green technology, 
and the environmental protection industry. Norway mentioned that in FTA negotiations it aimed to 
include pr ovisions on the promotion of trade in goods and services that contributed to sustainable 
development and that identification of such services was yet to be done.  
3.18.  Members also addressed the question of what challenges and policies impeded the ability of 
developing countries and LDCs to engage in and maximize benefits from trade in environmental 
services and how these could be addressed .  
3.19.  Members broadly highlighted the importance of providing technical assistance and capacity 
building to developing countrie s and LDCs. Further points raised, inter alia , include the importance 
of identifying concrete challenges and opportunities regarding environmental services, discussing 
whether the small size of environmental services trade resulted from lack of demand rath er than 
from supply problem s, facilitating access to trade and investment in technologies, promoting 
innovation for developing countries and LDCs, taking  into account their needs, priorities and 
development circumstances, and avoiding unilateral measures.  
3.4  Stakeholder  inputs  
3.20.  Stakeholders contributed to the discussions by highlighting, inter alia , ongoing efforts such 
as the World Economic Forum ( WEF)'s collaboration with industry to identify non -tariff barriers and 
relevant technologies to support the HS 2027 update, or TESS' organization of round tables that 
could help identify approaches to discuss regulatory cooperation, equivalence, or government 
subsidies. WEF also noted the launch of a report on "Accelerating Decarbonization through Trade in 
Climate Goods and Services " in September , which noted NTBs were more significant trade barriers 
to trade than tariffs alone, and that such barriers were particularly challenging for developing 
countries.  TESS underlined the importance of accounting for both tariff and non -tariff measures in  
order to transition beyond a "market -based" discussion and that regulatory cooperation could 
complement work to achieve environmental goals.  
4  CIRCULAR ECONOMY – CIRCULARITY  
4.1.  Guidance on discussions  on circular economy – circularity was provided by the Ministerial 
Statement as well as the following guiding questions included in the Work Plan:  
• What trade policies, tools and collaborative actions can support the transition to a circular 
economy that supports the achievement  of sustainable development goals?  
• What trade policies, tools and collaborative actions could help developing and LDC Members 
ensure that circular economy approaches contribute to their sustainable development?  
• What are the lessons learned from existing ef forts to advance circular economy goals 
(including reducing unsustainable resource use, promoting resource efficiency, sustainability 
and safety across product lifecycles, restoring and regenerating ecosystems, and minimising 
waste) and the opportunities a nd challenges linked to trade and trade policies?  
 
4.2.  The thematic area of circular economy – circularity was discussed in the following plenary and 
working group meetings. In the plenary meeting on 7 February, Members considered an 
International Chamber of C ommerce (ICC) presentation on linkages between the circular economy, 
trade and trade policy. In the plenary meeting on 31  March, Members shared experiences on national 
efforts to promote a circular economy  and circularity, and indicated their priorities fo r discussion in 
the informal working group. In the working group meeting on 17 May, Members heard business 
perspectives (IKEA , Mercedes Benz Group, Ragn -Sells and TrashCon) on the circular economy as 
well as challenges and opportunities to improve e -waste recycling (WEF). At that meeting, Members 
also shared their national experiences on how a circular economy approach was supporting 
sustainable development and climate change goals.  
4.3.  At the plenary meeting on 19 July, Members continued discussions on the approach to be taken 
as well as on elements to be included in the work. At the Working group meeting on 4 October, 
Members discussed trade -related policy issues, based on presentations by the BRS Secretariat, 
OECD and WCO related to wast e, end -of-life, and reverse supply chains, as well as by the Secretariat 
on possible elements for a mapping exercise.  INF/TE/SSD/R/14  
 
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  4.1  Interests and approach  
4.4.  Members  expressed interest in a number of trade -related aspects of the circular economy. 
Aspects raised  by differen t Members , inter alia , included: trade facilitation for goods and technologies 
that could contribute to the circular economy, including for reverse -supply chains ; trade -related 
aspects of a climate -aligned circular economy ; value-retention processes such a s remanufacturing, 
refurbishment, repair, and reuse , and linkages with  circular design ; interplay between trade and 
waste rules, including explor ing the possibility of fast -track procedures for shipments of used 
materials  to facilities for high -quality  recycling ; opportunities and challenges related to technical 
regulations and standards to promote  the circular economy ; and  the lack of data on circular 
economy -related trade flows and internationally accepted definitions.  
4.5.  Members also underlined the importance of considering the interests of developing countries 
and LDCs in the discussions, including technical assistance capacity building needs and challenges 
related to waste management . Interest was expressed to discuss circular economy and the 
bioeconomy,  means to enhance technology and investments into circularity,  the promotion of 
technology transfer and innovation for the circular use of material flows and the extension of material 
lifetimes; tools to incentivize greater resource efficiency ; as we ll as opportunities for  circular 
economy and value chain integration .  
4.6.  Regarding the scope of the discussions, Members indicated different priorities in terms of 
specific segments and issues along the lifecycle. At the same time, Members broadly recognized  that 
discussions would cover the entire lifecycle from upstream processes such as design through  the 
end of life and waste disposal. A suggestion  was also made that discussions should cover both 
material flows and emissions to foster a holistic understand ing of the concepts of circular economy 
and circular carbon economy.  
4.7.  Regarding possible future work, Members broadly welcomed the suggestion of a mapping 
exercise to build a broader understanding of the trade aspects of the circular economy  which are 
relevant to each part of the life cycle , and help Members identify priority areas for future work. A 
number of Members suggested to have sector -specific discussions  on trade issues along the full life 
cycle of products . Suggestions for sectors, inter alia , incl uded renewable energy  products  and 
electronics , while some Members saw the need for further discussion s to determine  priority sectors.  
Complementary suggestions included t o undertake a targeted questionnaire to catalogue measures 
which  advance circular eco nomy targets, or to consider best practices to achieve a more 
resource -efficient circular economy.   
4.2  Private sector experiences  
4.8.  Members companies of the ICC provided business perspectives on opportunities and challenges 
with regard to trade-related aspects of the circular economy:  
Private sector experience  
Ikea  
Transition to a circular economy through a commitment to use only renewable and recyclable 
material sources by 2030, thereby limiting climate impacts and addressing resource scarcity. To 
achieve this, holistic approaches and common definitions would be necessary, as well following 
incremental approaches and limiting administrative burdens.   
Mercedes -Benz Group  
Reducing resource consumption through circular design to achieve longer lifetime and introduce 
recycled material into the supply chain. Trade -related challenges for batteries include cross -border 
transport issues, classification of batteries as "waste",  customs procedures and regulatory 
fragmentation for batteri es' regulation.  
 
  INF/TE/SSD/R/14  
 
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  Private sector experience  
Ragn -Sells  
Improving food security and resource scarcity by putting CO2 in a circular loop by treating ash 
and combining it with captured CO2 to form calcium carbonate, which could then be used to 
produce vinyl flooring. On the agricultural front, the company was providing closed loop solutions 
by devising technical solutions to extract detoxified nutrients from wastewater treatment plants. 
Regulatory barriers and heterogeneity hindered trade in rec ycled products, including detoxified 
nutrients (e.g.  potassium, nitrogen, phosphorus) that could be used in fertilizers.  
TrashCon  
Improving waste segregation in developing countries through technologies that separate plastic 
and food wastes to create inpu t materials for furniture. Trade challenges faced by the company 
included vague policies, fragmented regulations for the waste management industry and lack of 
subsidies on circular economy. Suggestions for solutions included improving the policy framework,  
enhancing accountability, allocation of subsidies for circular technologies, increased stakeholder 
involvement, and standardization of products.  
 
4.3  Transparency and experience sharing  
4.9.  Several Members shared their experiences regarding  the circular economy , including how a 
circular economy approach was supporting sustainable development and climate change goals :  
Experience sharing  
Canada  – Right to Repair, Food Waste Reduction Challeng e, and regional efforts  
The Right to Repair aims to extend the lifetime of products such as home appliances and electric 
appliances rather than purchasing new ones.  
The Food Waste Reduction Challenge aims to reduce food waste and increased food availabili ty, 
lower costs for consumers and businesses and reduced emissions, and strengthen our food 
systems.  
Regional efforts with  the United States already in recovered paper materials and other recovered 
materials will be critical to building circular supply ch ains in North America. It is worth noting that 
there is currently work underway under the Canada -Mexico -United States Commission for 
Environmental Cooperation to study recycling infrastructure and circular trade.  
Chile  – Producer Responsibility Law  
In force since 2016, it makes producers of priority products responsible for financing the 
management of waste generated by products that are sold on the domestic market for 7 priority 
products: technical and electronic equipment, batter ies, packaging, newspapers and magazines, 
tyres, batteries, oils and lubricants.   
Colombia  – National Circular Economy Plan  
The strategy prioritises action on six material or resource flows: industrial materials and consumer 
goods; packaging materials; biomass; energy; water and building materials. The objective of the 
framework is to increase the recycling rate from 8% to 12.5 % by 2022. Through Extended Product 
Responsibility programmes, more than 500,000 tonnes of special waste have been recovered.  
Costa Rica – National Bioeconomy Strategy  
The strategy aims to build a knowledge -based, green and resilient competitive decarbon ized 
economy based on the principles of a circular bioeconomy and decarbonization of production and 
consumption processes.   INF/TE/SSD/R/14  
 
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  Experience sharing  
European Union  – Circular Economy Action Plans , EU Eco -design Directive  and proposal for an 
Eco-design for Sustainable Products Regulation , and Waste Legislation (including Directive on 
batteries and accumulators, Directive on packaging and waste; Directive on end -of-life vehicles ) 
The measures aim , inter alia,  to improve pro duct design to avoid the use of hazardous chemicals 
or materials, reducing  the environmental impact of a product from conception.  
The Eco -design Directive covers a broad scope of products and aims to keep products as long as 
possible in the lifecycle. The proposal for an Eco -design for Sustainable Products Regulation will 
strengthen and/or introduce provisions concerning aspects such as product repairability, 
durability, and availability of spare parts, among others.  
Regarding waste, the EU objective is to bring back into the economic cycle secondary raw 
materials and recycle waste while promoting the uptake of extended producer responsibility (EPR) 
schemes.  
Japan  – Japan Partnership for Circular Economy (J 4CE) 
A dom estic circular economy partnership was launched in 2021 to deepen the understanding about 
the circular economy, promote collaborative efforts and strengthen public -private alliances among 
a wide range of companies and stakeholders. A summary of 139 good pr actices was published by 
Japanese companies with regard to the circular economy in September 2021.  
Maldives – Ocean Preservation  
Preserving the oceans is a national priority due to is economic importance, as the source of 60% 
of its GDP. Banning eight var ieties of single use plastics since 1 June, 2022, aims to reduce energy 
use and waste, while leading to value creation for plastic product collection through partnerships 
with industry.   
Saudi Arabia  – Circular Carbon  Economy Program  
The program promotes circularity through circular approaches aiming to address both material 
wastes and emissions flows and could contribute to sustainable global trade by promoting 
solutions adapted to country's individual needs, circumstances, and priorities. Carbon  removal 
could be an additional step in the circular cycle beyond the cycle of reduction, reusing, and 
recycling and could have positive effects on the extraction of natural resources by reducing 
emissions.  
Switzerland  – Plastic and electronic recycling r ules ( e.g. Environmental Protection Act, Ordinance 
on Beverage Containers)  
National system to recycle PET , beverage containers made from aluminium  and glass bottles 
through a federal regulation and minimum threshold of recycling  (a tax will be introduced only if 
the recycling threshold is not met). . Waste bottles that cannot be recycled are incinerated to 
produce electricity and heat. For electric a nd electronic equipment, an advance recycling 
contribution is included in the purchase price.  
United States  – Sustainable  materials  management  and national recycling strategy  
The concept of sustainable materials management (SMM) aims at the systemic and productive 
use and reuse of materials over their life cycles, with limited impacts on the environment. The 
National Recycling Strategy, aims to create a more resilient and cost -effective national recycling 
system. And create more equitable access to recycling services reduce waste while promoting 
recycling and trade in recycled materials.  
 
  INF/TE/SSD/R/14  
 
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  4.4  Trade -related policy issues  
4.10.  Presentations by stakeholders and the Secretariat contributed to discussions among Members 
on trade -related policy issues : 
Presentations  
BRS Convention Secretariat – Identification  of used goods and trade in recycled materials, 
work on Prior Informed Consent (PIC) procedures  and recent update s to the Basel Convention to 
address trade in e -waste  
Opportunities linked to trade in e -waste, including its high recycling value, work on the 
PIC procedures to control transboundary movements of waste, and recent updates to the 
Basel  Convention whereby trade of e -waste must respect PIC procedures and environmentally 
sound management of waste.  
ICC – The circular economy  and international  trade: Options for the WTO  
The presentation provided an overview of trade policy obstacles such as standards a nd conformity 
assessment, export restrictions, subsidies, classification of end -of-life-products, tariff protection, 
or quantitative restrictions affecting a circular economy transition and pointed to challenges in 
measuring trade in secondary raw material s, second -hand goods and goods for remanufacturing 
due to the lack of specific HS codes. Regarding options for possible deliverables in the WTO, it 
was suggested that Members could include circular economy goods and services in possible 
revived EGS talks; revive and extend previous work on non -tariff measures on remanufactured 
goods; or work towards a set of common principles and sectoral best practices regarding 
trade-related circular economy measures.  
OECD  – Opportunities  and challenges to establish cros s-border reverse supply chains  
Based on  findings from the report entitled "Securing reverse supply chains for a resource efficient 
and circular economy: What role for trade facilitation mechanism and standards?", potential trade 
barriers to waste and end -of-life products include trade restrictions, procedural burdens or 
definitional challenges. Policy responses to promote reverse supply chains towards a 
resource -efficient circular economy include trade facilitation mechanisms, standards on recovery 
facilit ies and on end -of-life products, eco -design, tackling illegal waste trade, and addressing trade 
restrictions to the extent possible . 
WEF – Possible vertical  and horizontal approaches for circular trade  
Presentation on trade -related challenges and possible solutions for improving e -waste recycling, 
as well as what trade policy could more broadly do to support the momentum towards a global 
circular economy. Opportunities related to e -waste recycling included tapping into approximately 
USD 57 billion in materials like iron, copper and gold, and critical materials for green energy 
transition, creating new jobs, and reducing emissions by replacing primary extraction of materials 
with recycling. It also highlighted challenges pertaining to the transbounda ry movement of 
electronics and e -waste under the PIC procedure of the Basel Convention and suggested exploring 
digitalization and improving cooperation between environment and trade policy to bring trade 
facilitation expertise to hazardous waste trade mana gement.  
WCO Secretariat  – Challenges  in distinguishing used goods and recyclable materials from waste 
in customs procedures  
Challenges faced by customs authorities and the HS system in determining whether goods were 
recycled, and suggested holistic solutions through HS code updates, and other measures such as 
certifications and permits, in order to facilitate circular trade.  
WTO Secretariat – Overview of trade -related policy issues, sector aspects and other elements 
which could serve as a basis for a mapping exercise  
Overview of trade -related policy issues, including trade flows in goods and services related to the 
circular ec onomy, trade -related measures relating to circular economy activities notified by 
Members, and examples of circular economy policies shared by Members in previous discussions.  
 
4.11.  Members broadly highlighted that trade could play an important role in suppor ting the 
transition towards a circular economy , and  pointed to a number of trade policy issues relating to 
reverse supply chains, waste and non -waste products, and more broadly to the circular economy . 
Issues raised, inter alia, include the potential of tr ade facilitation and related systems to support INF/TE/SSD/R/14  
 
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  reverse supply chains;  collaboration between arrangements for the WTO Trade Facilitation 
Agreement and programs under the auspices of the WCO ; challenges of developing countries with 
imported waste management  and the need for capacity building and technological assistance to help 
them improve their recycling and harmless disposal capabilities ; importance of clear rules concerning 
the distinction between waste and non -waste to favour value -retention processes, while at the same 
time protecting the environment and human health; the need for more granular customs data to be 
able to distinguish waste from recyclable materials; the need to cooperate on technical barriers to 
trade including different standards for pr oduct design and packaging requirements, the need to 
improve market access for recycled and remanufactured goods, including by not treating them as 
waste , which some Members noted was  without prejudice to the Basel Convention ; the need to 
better integrate recycled materials into  product and packaging designs ; opportunities from 
information sharing on regional circular economy initiatives to inform how developing and 
LDC Members could work with regional partners on creating circular value chains.   
4.5  Stakeholde r inputs  
4.12.  Stakeholders contributed substantially and substantively to the discussions of the Working 
Group. Among others, the United Nations Environment Programme (UNEP ) shared information 
regarding ongoing projects to promote circularity in sustainable textile value chains building on the  
"Sustainability and Circularity in the Textile Value Chain " repor t, the United Nations Economic 
Commission for Europe (UNECE ) shared information on a policy report on "Accelerating the Circular 
Economy Transition in the UNECE Region: Po licy options for harnessing the power of trade and 
economic cooperation ", and UNIDO provided updates on its programming framework aiming to 
advance climate neutral industry and circular economy and focus on value chains which could provide 
structural trans formations such as bioeconomy, plastics, textiles, electronics, or construction.  
4.13.  Stakeholders pointed to a number of elements that could be covered by the discussions, 
including the need to improve transparency and traceability of value chains, improve cl arity in 
definitions and classification of waste, harmonize circular economy -related standards, mapping 
circular economy policies with trade implications across a products life -cycle, or focusing on key 
value chains in sectors including electronics, chemic als, textiles or agriculture. Stakeholders offered 
to contribute to the discussions through their experiences in other fora or through existing tools, 
such as the "UNECE Toolbox on Transparency and Trace ability " tracing the environmental and social 
impacts along supply chains  for cotton, leather, minerals, and agri-food, UNIDO's participation in a 
technical committee of the ISO on definitions of circular economy practi ces, or the WEF's 
participation on th e Board of the Platform for Accelerating the Circular Economy (PACE) . 
Stakeholders also raised the importance of considering impacts of resource use for developing 
countries and of a just transition to a circular economy.  
5  SUBSIDIES  
5.1.  Guidance for discussions  on subsidies was provided by the Ministerial Statement as well as the 
following guiding questions included in the Work Plan:  
• How can the environmental effects and trade impacts of relevant subsidies be identified?  
• What information exists to better understand these impacts and where are there information 
gaps?  
• What are the opportunities  to address the environmental impacts of subsidies at the WTO?  
 
5.2.  The thematic area of subsidies was discussed in the following plenary and working grou p 
meetings. In the plenary meeting on 31 March and 11 April, Members considered a presentation by 
IISD on different types of subsidies applicable to fossil fuels and agriculture, and shared their 
priorities for discussion in the informal working group. In the working group meeting on 18 May, 
presentations by the OECD and UNEP provided overviews of existing information on fossil fuel 
subsidies and on findings from a joint UNEP -FAO-UNDB report regarding environmental sustainability 
impacts of agricultural sub sidies, respectively. Members further shared their experiences on 
monitoring of subsidies. At the plenary meeting on 19 July, Members exchanged views on the 
elements they considered important to be addressed by the working group. The working group 
meeting on 5 October focused on transparency and methodologies to assess environmental impacts, 
hearing presentations from the WTO Secretariat on environment -related subsidy notifications in the 
WTO Environmental Database (EDB), the OECD on environmental impacts o f industrial subsidies, 
and from IISD on sources of evidence for evaluating the environmental effects of fisheries subsidies. INF/TE/SSD/R/14  
 
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  Members also discussed opportunities to address the environmental impacts and the identification 
of information gaps.  
5.1  Interests and approach  
5.3.  Members displayed a broad scope of interests for discussions in the group, including agricultural 
subsidies, fossil fuel subsidies, industrial subsidies, and green subsidies.  Some  Members noted the 
high rate of emissions from the agr icultural sector and the impact of subsidies on greenhouse gas 
emissions could warrant further discussion, although some  other  Members suggested  that these 
discussions would be better suited to other fora. Similarly, f ossil fuel subsidies and industrial 
subsidies were also noted by some Members as potential topics of discussion due to high emissions 
from these sectors, while some other Members suggested  to have such  discussions in other fora.  
5.4.  A number of Members expressed interest in continuing to discuss t he environmental effects of 
agricultural subsidies. Such Members highlighted the contribution of reducing agricultural subsidies 
on carbon emissions, as well as the links between agricultural support and environmental impacts 
such as deforestation , biodive rsity degradation , or overconsumption of water which could be relevant 
elements  to discuss in TESSD.  It was noted that agricultural subsidies were concentrated in a small 
number of Members and created distortions in international markets, as many developin g countries 
did not have the fiscal capacity to subsidize agriculture. Other Members suggested that the CoA -SS 
would be the appropriate forum to discuss agricultural reform, including those with regard to 
subsidies , and that TESSD should avoid duplicating efforts of other WTO bodies.  
5.5.  Regarding fossil fuel subsidies, the importance of phasing out inefficient subsidies that 
encouraged wasteful consumption was recognized  by a range of Members . Several Members noted 
that the work of TESSD on subsidies could of fer guidance for the reform of fossil fuel subsidies and 
for improving transparency and identifying information gaps . Some Members highlighted efforts and 
commitments made to reform fossil fuel subsidies in different international fora including the 
UNFCCC , G7, G20, ACCTS and APEC, and suggested building understanding in TESSD on the scale 
and impacts of fossil fuel subsidies. Another Member noted that addressing fossil fuel subsidies could 
also present challenges, in particular for developing countries, un derlining the importance of 
ensuring that the transition be gradual and offer inclusive opportunities for sustainable development. 
It was also noted that discussions should not duplicate the work that would take place under the 
Fossil Fuel Subsidy Reform ( FFSR) initiative  and that discussions on fossil fuel subsidies  should take 
place there .  
5.6.  Several Members also encouraged the inclusion of industrial subsidies in the discussion. It was 
noted that emissions from metal industries alone accounted for 10% of global greenhouse gas 
emissions, and that industrial subsidies that led to overcapacity ha d a large effect on trade and the 
environment, particularly in emissions -intensive sectors such as steel .  
5.7.  It was also suggested that discussions could cover "green" or environmentally positive 
subsidies in order to contribute to the transition towards sus tainable production processes and 
energy sources. Discussions on this topic could build experience within the WTO on the trade impacts 
of environmentally positive subsidies to complement the existing knowledge on trade impacts of 
subsidies.  
5.8.  Regarding possi ble future work, several Members underlined the importance of transparency 
and availability of quality data as a priority. Avenues for future work could also include exploring the 
disclosure of planned measures, as well as obtaining data from relevant inte rnational organizations 
to build a common evidence -based understanding.  A number of Members expressed support for 
focusing discussions on the environmental effects of agricultural subsidies as well as subsidies 
related to the transition to a low carbon eco nomy . At the same time, some Members displayed 
different priorities  regarding subsidies to be discussed, including industr ial subsidies , fossil fuels, or 
green subsidies . Some Members also expressed interest in sharing experiences on subsidy design, 
includ ing how to design green subsidies while minimizing trade distortions . It was suggested that 
having a broad scope in terms of subsidy discussions could also provide opportunities to enhance 
transparency and share experiences to explore effective means to improve design or to rationalize , 
gradually phase out  or abolish subsidies , where relevant, based on national circumstances.   INF/TE/SSD/R/14  
 
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  5.2  Transparency  and methodology of data  
5.9.  Presentations by stakeholders and the Secretariat illustrated data availability and information  
gaps regarding subsidies, as well as methodologies and findings regarding environmental impacts.  
Presentations  
IISD – Sources  of evidence for evaluating the environmental effects of fisheries subsidies and 
how they can inform policy  
Case studies and modelling on differentiated insights regarding the environmental harmfulness of 
subsidies and how these informed policy choices in fisheries subsidies negotiations.  
IISD – Background presentation on fossil fuel subsidies as well as agric ultural subsidies and 
information availability, and trade -related environmental and development aspects  
On fossil fuel subsidies, the presentation covered definitional elements and estimates on the 
amounts of global subsidies, showing that subsidies for fo ssil fuels globally largely exceeded those 
for renewable energy. The presentation on agricultural subsidies provided estimates on the 
amounts of global subsidies, their global and specific environmental impacts, and opportunities to 
repurpose these towards  more positive environmental outcomes.  
OECD  – Environmental impacts of industrial subsidies, based on findings from a forthcoming 
report entitled "The climate implications of government support in aluminium smelting and 
steelmaking"  
Findings from a forth coming report on government support in aluminium smelting and 
steelmaking indicated that such support increased emissions: (i) mainly because increased 
production drove emissions (scale effect); but also due to (ii) higher emission intensity of major 
recipients (composition effect); and (iii) a limited contribution to lowering emission (technique 
effect).  
OECD – Overview of the OECD Inventory of Support Measures for Fossil Fuels, methodologies for 
evaluating FFS, as well as existing information and inform ation gaps relating to FFS  
Work on tracking fossil fuel subsidies highlighted the need for more detailed data to track progress 
on fossil fuel subsidy reform and encouraged processes such as reporting and peer reviews to 
improve transparency and to identif y measures to be reformed.  
UNEP – Overview of the joint UNEP -FAO-UNDB report ( "A Multi -Billion -Dollar Opportunity: 
Repurposing agricultural support to transform food systems ") on agricultural support measures in 
the context of environmental sustainability  
The presentation highlighted the adverse impacts of agricultural support on the environment 
(e.g. through over - or misuse of pesticides and fertilizers) and its repurposing towards investment 
in public goods and services for agriculture, designed to boost  productivity, reduce negative 
environmental impacts, and achieve better social outcomes.  
WTO Secretariat  – Environment -related subsidies included in the WTO Environmental Database 
(EDB)  
Overview of environment -related subsidies included in the EDB. In 2021, Members had submitted 
125 subsidy notifications covering 1,141 subsidy measures. Environment -related s ubsidies were 
mainly notified under the SCM Agreement and the Agreement on Agriculture, with the most 
frequent objectives being alternative and renewable energy, sustainable agriculture management, 
and water management and conservation. An increasing numbe r of EDB entries for subsidies were 
coming from TPR reports.  
 
5.10.  Members highlighted the importance of data in identifying the environmental impact of 
subsidies. Several Members pointed to the need for more transparency and that better tracking and 
reporting  of subsidies was needed. It was noted that empirical findings on the correlation between 
emissions intensity and government support should encourage an intensification of work to address 
environmentally harmful subsidies.  Further, e vidence -based analysis of their effects c ould help to 
improve subsidy design and minimi ze negative externalities , including by assessing the regulatory 
framework and account for social and developmental impacts. Interest was also expressed in more 
research  on the trade impact of environmentally positive subsidies , as this could provide insights 
regarding their design .  INF/TE/SSD/R/14  
 
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  5.11.  Members pointed to the challenge of assessing potential environmental impacts of subsidies 
due to data shortcomings. The lack of subsidy not ifications at the WTO was pointed out, as only 
around one third of Members had submitted their required subsidy notifications in 2021. Improving 
transparency and collecting quality data was seen as a first step towards allowing for conclusive 
analysis . It was suggested to enhance transparency on subsidies at the WTO through existing 
mechanisms such as notifications or trade policy reviews. Another suggestion was that more 
information sharing on domestic initiatives in TESSD could support the assessment  of 
environmentally harmful subsidies, which could complement discussions on policy implications in the 
CTE and SCM Committee.  
5.12.  Members noted that more complete information regarding domestic inventories of fossil fuel 
subsidies was needed, citing the example of  voluntary peer reviews organized in fora such as the 
G20 or APEC. Noting that the OECD inventory was a valuable tool to understand the current status 
of fossil fuel subsidies, Members stated that TESSD  could work to enhance transparency regarding 
fossil f uel subsid ies.  
5.13.  The European Union shared information on a  toolbox  for phasing out  environmentally harmful 
subsidies in Europe , which investigate s the range of environmentally harmful subsidies and those 
that could be reduced or eliminated . 
5.14.  Some Members welcomed the idea of creating a matrix of subsidies according to their trade 
impacts ( distortive / non -distortive) and environmental impacts  (positive / negative) , which could 
inform discussions on subsidy reform . It was also suggested that a survey of existing studies on 
subsidies and the environment as well as current practices by Members could be the basis for future 
discussions in TESSD.   
5.3  Stakeholder inputs  
5.15.  Stakeholders  provided inputs to the discussion through presentations and interventions during 
the meetings. In particular, TESS noted that discussions in TESSD could assess the extent to which 
existing disciplines  or ongoing negotiations may be complemented by an approach that focuses on 
the sustainability  impact of subsidies regardless of their trade distorting nature. TESS noted its 
efforts to mobilize expertise to help frame discussion s around sustainability goals and condi tions in 
the area of subsidies and to  start identifying options to advance discussions in this area, considering 
environmental  imperatives as well as trade and wider sustainable development perspectives.  
6  FURTHER DISCUSSIONS HELD IN PLENARY MEETINGS  
6.1.  In addi tion to the four thematic work areas, discussions also took place in plenary meetings. 
These included a dedicated focus on developmental dimensions across all four working groups 
regarding challenges and opportunities for sustainable trade, as well as dedi cated focus on 
perspectives from various regions.  
Challenges and opportunities for sustainable trade 
6.2.  Following an introduction by the EIF, ODI presented highlights of the EIF -funded project 
"Aligning climate and trade policy for LDCs and graduates ". The presentation highlighted the 
importance of enhancing climate financing through Aid for Trade, linking technology transfer and 
capacity building in ef forts to liberalise trade in EGS, making the role of technology transfer for LDCs 
more explicit in the circular economy, and supporting sustainable regulatory frameworks for LDCs.  
6.3.  On behalf of the LDC Group, the representative of Chad highlighted challenges of climate 
change adaptation and mitigation for LDCs, including the need to reduce poverty while fostering 
clean economic growth and increasing their participation in world trade , including through technology 
transfer mechanisms.  
Regional sessions  
6.4.  Three regional sessions provided experiences at the intersection of trade, climate change, and 
sustainable development.  INF/TE/SSD/R/14  
 
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  6.5.  In the regional session on Asia -Pacific, presentations covered  the implementation of a single 
window for accelerated  border clearance in Vanuatu,  experiences with trade in EGS  among APEC 
Members including a breakdown of goods included in the APEC List of Environmental Goods, and 
Viet Nam's effort s to promote green competitiveness and sustainability in line with the SDGs.  
6.6.  In the regional session on Africa, the African Development Bank (AfDB) shared perspectives 
on the circular economy through examples of capacity -building efforts and technical assi stance, 
based on findings from a survey on national circular economy roadmaps , the Global Shea Alliance 
highlighted the interaction between trade and sustainable development through the example of shea 
products  which had created jobs and protected wildlife , and the  Earth Builders Association shared 
its experience of south -south technological collaboration to develop innovative building tools to 
reduce resource  use.  
6.7.  In the session on Latin America and the Caribbean , the International Institute for Cooperati on 
on Agriculture (IICA ) highlighted the contribution of the bioeconomy in promoting economic and 
social growth as well as decarbonization, Agroicone highlighted the experience of the private sector 
in Brazil with regard to the mutual supportiveness betwee n agriculture and sustainable development , 
a joint presentation by the United Nations Conference on Trade and Development (UNCTAD) and 
the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES ) 
described the protection of t he queen conch value chain through Blue Biotrade, a programme to 
commercialize goods and services according to sustainability guidelines including the conservation 
and sustainable use of biodiversity , Paccari highlighted efforts by the company to responsib ly source 
and sustainably produce and market products from the cocoa value chain, including through joining 
voluntary sustainability standards, using compostable packaging, and working to reduce emissions 
by transitioning to renewable energy sources.  
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