INF/TE/SSD/W/28  
 
30 June 2023  
(23-4466) Page: 1/3 
  Original: English  
 
 
TRADE AND ENVIRONMENTAL SUSTAINABILITY  
STRUCTURED DISCUSSIONS (TESSD)  
DRAFT PROPOSAL FOR A TRADE AND ENVIRONMENTAL SUSTAINABILITY TOOL  
The following communication , dated 30 June 2023 , is being circulated at the request of the TESSD 
Co-convenors (Canada and Costa Rica).  
 
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1  INTRODUCTION  
1.1.  The Trade and Environmental Sustainability Structured Discussions (TESSD), since their 
establishment, have highlighted the importance of  providing clear and targeted approaches to 
determining how trade can be part of the solution to climate change and other environmental 
challenges.  
1.2.  In line with the 2021 Ministerial Statement (WT/MIN(21)/6/Rev.2) and the Work Programme 
(INF/TE/SSD/W/17/Rev .1) presented in February 2022, TESSD has had numerous substantive 
discussions on trade and environmental sustainability around four thematic areas in the following 
informal working groups: (i) Trade -related Climate Measures; (ii) Environmental Goods and 
Services; (iii) Circular Economy – Circularity; and (iv) Subsidies. The four working groups have 
active participation of stakeholders that contribute to better informed and evidence -based 
discussions among Members.  
i. Trade -related Climate Measures: Members have taken a sectorial approach in their exchanges 
on the different forms of carbon measurement standards and measures intended to reduce 
carbon emissions. Members have also shared experiences on the trade considerations involved 
in the development  and design of policies.  
ii. Environmental Goods and Services: Members have pursued sector -specific discussions under 
the objective of climate change adaptation and mitigation. Current discussions on renewable 
energy have focused on identifying relevant enviro nmental goods and services, barriers to 
their dissemination, challenges facing developing countries as well as opportunities and 
approaches to promote trade in these goods and services.  
iii. Circular Economy – Circularity: Members have focused on discussing tra de issues along the 
entire lifecycle of goods from a sectorial perspective, and are pursuing a mapping exercise to 
build a broader understanding of the aspects of trade and trade policy that are relevant to 
each part of the lifecycle . 
iv. Subsidies: Members ha ve been discussing the potential positive and negative environmental 
effects subsidies as well as their trade impacts with a focus on agricultural subsidies and 
subsidies related to the transition to a low -carbon economy. The sharing of national 
experience s and practices, including on subsidy design and transparency, continues to add 
value to the discussions.  
1.3.  Over the past two years, experience sharing and discussions in the four working groups have 
generated a wealth of information, and work has become mo re focused at the sector level and 
progressed towards concrete outputs. There exists both a necessity and an opportunity for TESSD INF/TE/SSD/W/28  
 
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  to capitalize on this work and create a tool that fosters transparency, knowledge dissemination and 
enhanced understanding, a s well as collaboration at the intersection of trade and environmental 
sustainability, between Members and supported by stakeholder contributions.  
2  PROPOSAL FOR A TRADE AND ENVIRONMENTAL SUSTAINABILITY TOOL  
2.1.  This proposal for a Trade and Environmental Sustai nability tool is intended to provide the WTO 
Membership with a living transparency and cooperation tool to reflect the progress Members are 
making in their trade and environmental policies and good practices towards achieving climate 
objectives. It will al so promote transparency on the substantive contributions of stakeholders. The 
Tool will enable policymakers to have a better understanding of where Members stand in the four 
thematic areas and use this platform for better informed trade and investment poli cy decisions, and 
to determine potential areas for partnerships and cooperation, among others. The Tool will be 
designed as a living instrument that encourages the evolution of the current topics under discussion, 
and organically includes new features or a reas of interest of Members.  
2.2.  The Trade and Environmental Sustainability Tool  would be structured around three dimensions: 
(i) by Member; (ii) by thematic area (e.g. in line with the four TESSD working groups); and (iii) by 
sector. The Tool would therefore provide dedicated spaces for Members, the four thematic areas, 
and for selected priority sectors.  
2.3.  In terms of content, the following elements would be included: (i) information on policies and 
initiatives by Members; (ii) experiences an d good practices; (iii) analytical work by stakeholders; 
and (iv) relevant statistical and policy indicators.  
2.4.  The information contained in the Tool would be based on publicly available information, 
including notifications and trade policy reviews from the  WTO Environmental Database, voluntary 
information provided by Members, discussions and outputs generated by the TESSD working groups, 
information from other relevant WTO fora, and analytical work and studies by stakeholders.  
2.5.  It is suggested that the Trade  and Environmental Sustainability Tool  would be part of the WTO 
website, situated under the TESSD section. The WTO Secretariat would be requested to support the 
development, update, and maintenance of this Tool. Financial support would be required to devel op 
and run the Tool. The Co -convenors will address this requirement in a second stage of the process 
(see section 4).  
2.6.  The recommendation to develop a Trade and Environmental Sustainability Tool could be a 
tangible deliverable by TESSD for the 13th WTO Min isterial Conference (MC13), with the objective 
that the Tool will eventually become a public good for the use of all WTO Members.  
3  OBJECTIVES AND VALUE ADDED  
3.1.  The Trade and Environmental Sustainability Tool would serve the following objectives:  
i. Provide the T ESSD Co-sponsors, and WTO Members more broadly, with a 
transparency tool that will be populated on a voluntary basis with information 
provided by Members and stakeholders, to reflect the current situation and 
progress of Members related to their trade and environmental sustainability 
policies, based on the four thematic working areas of TESSD.  
ii. Improve the knowledge and understanding of the linkages between trade and the 
environment through an interactive and dynamic instrument, to enable better 
informed dec isions by policymakers.  
iii. Optimize the input and participation of stakeholders by including updated studies 
and publications related to the thematic areas, and allow Members to cross -check 
on how these inputs relate to their own trade and environment policie s. 
iv. Provide cooperation among Members through the visualization and sharing of 
good practices.  INF/TE/SSD/W/28  
 
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  4  NEXT STEPS AND TIMELINE  
4.1.  Stage 1 : 
i. Develop this proposal into a concept note for the Tool, which would provide 
further detail on content, functionalities and layout . 
ii. TESSD Co -sponsors and stakeholders have the opportunity to provide feedback 
and inputs.  
iii. TESSD Co-convenors to hold informal meetings and consultations with Members 
during the 2nd semester of 2023 to increase understanding and obtain feedback 
on the concept for the Tool. 
iv. As a TESSD deliverable for MC13, make a recommendation to pursue the 
development  of such  tool. 
4.2.  Stage  2: 
i. Co-convenors to identify resources required and seek financial support for the 
develop ment and update of  the Trade and Environmental Sustainability Tool . 
ii. Begin development stage of the Tool with the aim of having the final product by 
MC14.  
Table 1. Expected timeline of work  
JUL  
2023  AUG  
2023  SEP 
2023  OCT 
2023  NOV 
2023  DEC  
2023  JAN  
2024  FEB  
2024  
Stage 1  Start Stage 2  
Presentation 
of the Tool 
proposal in 
1st Plenary 
Meeting of 
2023.  Summer 
break. Allow 
capitals to 
review and 
provide 
feedback.  Co-convenors  
to hold informal 
consultations, 
meetings and outreach 
to share concept of the 
Tool. 2nd Plenary 
meeting of 
2023 to 
review 
progress 
and details 
of TESSD 
outcomes 
for MC13.  Final 
preparatory  
steps 
towards 
MC13.  MC13:  
Presentation of 
the Tool and 
begin its 
development.  
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