WT/CTE/28/Rev.1  
 
22 November 2021  
(21-8763) Page: 1/11 
    
 
REPORT (2021) OF THE COMMITTEE ON TRADE AND ENVIRONMENT  
Revision  
In 2021, the Committee on Trade and Environment in Regular Session (CTE) held three 
meeting: a first formal meeting on 30 March1, under the Chairmanship of Ambassador of Barbados 
Mr Chad Blackman ; a second formal meeting on 23 June  and a third formal meeting on 12 October2 
under the Chairmanship of Ambassador of the Philippines Mr  Manuel  A.J. Teehankee.3 The three  
meetings were hosted in person and virtuall y, due to COVID -19 restrictions.  
The work of the CTE was organized in accordance with the mandate established by the 
Doha Ministerial  Declaration, Paragraphs 32, 33 and 51.4 Discussions took place mainly on 
environmental requirements and market access is sues under Paragraph 32(i) ("The effect of 
environmental measures on market access, especially in relation to developing countries, in 
particular the least  developed among them, and those situations in which the elimination or reduction 
of trade restrictio ns and distortions would benefit trade, the environment and development"). Other 
items addressed by the CTE were item 15, item 46 and item 8 (DMD  Paragraph  32(ii) .7 
1  ENVIRONMENTAL MEASURES  AND MARKET ACCESS (PARAGRAPH 32 (I) OF THE DOHA 
MINISTERIAL DECLA RATION , ITEM 6 OF THE CTE WORK PROGRAMME )  
"The effect of environmental measures on market access, especially in relation to developing 
countries, in particular the least  developed among them, and those situations in which the 
elimination or reduction of t rade restrictions and distortions would benefit trade, the 
environment and development."  
1.1  Fossil Fuel Subsidy Reform  
1.1.  At the March , June and October  meetings, New Zealand  briefed delegations on the topic of 
fossil fuel subsidy reform (FFSR) and announced the renewed efforts to present a Joint Ministerial 
Statement on FFSR at the 12th Ministerial Conference (MC12) in November 2021. This renewed 
Statement was building  on the  Statement presented at the 11th Ministerial Conference (MC11) in 
Buenos Aires by a group of 12 developing and developed Members from many regions. New Zealand 
informed  that the recently established Trade and Environmental Sustainability Structured 
Discuss ions (TESSD)  discussions showed that Members recognized the significance of this issue, its 
relevance as a trade issue, and the role of the WTO in achieving meaningful and equitable reform of 
such subsidies given existing transparency mechanisms and subsid ies disciplines. A revised version 
 
1 Available through WT/CTE/M/71 , "Report of the Meeting held on 30 March 2021", Note by the 
Secretariat.  
2 To be circulated through WT/CTE/M/73.  
3 Available through WT/CTE/M/72, "Report of the Meeting held on 23 June 2021", Note by the  
Secretariat.  
4 The CTE Work Programme and the parts of the Doha Development Agenda that are relevant to the 
work of the CTE Regular are included in Annexes 1 and 2 re spectively.  
5 Item 1 of the CTE Work Programme reads: "The relationship between the provisions of the multilateral 
trading system and trade measures for environmental purposes, including those pursuant to multilateral 
environmental agreements."  
6 Item 4  of the CTE Work Programme reads: "The provisions of the multilateral trading system with 
respect to the transparency of trade measures used for environmental purposes and environmental measures 
and requirements which have significant trade effects."  
7 Item 8  of the CTE Work Programme reads: "The relevant provisions of the Agreement on Trade -
Related Aspects of Intellectual Property Rights ." WT/CTE/28/Rev.1  
 
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  of the Statement was circulated to WTO Members on 16  September  2021. Chile, Uruguay, Fiji and 
the European Union recently joined as co -sponsors  of the joint Statement.  
1.2.  In reaction  to the updates , several delegations ackn owledged the importance of FFSR and 
welcomed efforts on a Ministerial Declaration at MC12. Some other delegations restated their 
objections to discussing FFSR in the CTE, noting that the issue of FFSR was dealt with in other for a 
such as the G20 , whereby a  voluntary phasing out of inefficient FFS that encouraged wasteful 
consumption, was done with two clear qualifiers: voluntary and in accordance with countries' 
national circumstances, priorities and needs.  One delegation shared their experience in reducing  
inefficient FFS and signalled the potential political difficulties of reaching a consensus on the issue. 
Another delegation noted that other sectors needed to be included if the goal was to reduce 
emissions and that FFSR had to apply methods that did not undermine economic and social goals.   
1.3.  One delegation commented that while Members were free to discuss trade and environment 
issues of interest to them and share relevant information with the Committee, it was their view that 
certain proposals by Members are not part of the multilateral process.  
1.2  Circular Economy and Plastics  
1.2.1   Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics 
Trade (IDP)  
1.4.  At the March  meeting, Morocco  briefed the Committee on the second meeting of IDP held in 
March 2021 which focused on the topics of transparency and international cooperation. Morocco 
noted IDP's plans to work towards a Ministerial Declaration at MC12 based on a factual report to be 
developed throughout the year. To that effect, the co -sponsors shared with Members a draft 
"Roadmap and possible outcomes by MC12". Many delegations intervened to welcome the initiative. 
Some delegations highlighted the need for transparency, trade policies, and synergies to promote a 
global ci rcular economy on plastic. Some other delegations expressed concerns about the increasing 
number of plastics in the oceans and highlighted the need to urgently preserve ecosystems. The 
following points were also highlighted: the importance of having a glob al agreement on plastics; the 
need for more effective waste plastic management to address the issue and encourage further 
knowledge and information sharing in this area; and the importance of adopting a trade -facilitative 
approach to support resource -efficiency, so that materials can be recovered, recycled, and returned 
to commerce.  
1.5.  At the June meeting, Barbados  and Ecuador  reported on the third meeting8 of the IDP as well 
as on the next steps and work towards a Ministerial Declaration by MC12. The briefin g generated a 
large number of positive reactions in the CTE, with significant interest expressed by delegations on 
the MC12 outcome and constructive elements presented by delegations on their perspectives and 
priorities. The importance of exploring synergi es and ensuring supportiveness between the IDP and 
other environmental sustainability initiatives in the WTO (such as TESSD) was also a common 
sentiment among delegations.  
1.6.  At the October  meeting, Barbados  and Ecuador  updated the Committee on the recent wo rk of 
IDP. The two co -coordinators informed the Committee that the IDP currently had 18 Members latest 
being Costa Rica and the Russian Federation. The IDP had recently circulated its Factual Report. Co -
sponsors  of the IDP were working on a draft declarati on for MC12 that would be further discussed 
later in October. They reiterated that the IDP was open participation to all WTO Members, and 
welcomed new co -sponsors. Australia noted that it would be chairing the next meeting and hoped 
that the Ministerial Declaration would be finalized then.  Several delegations expressed their: 
(i) appreciation to the IDP co -sponsors  for the efforts to tackle plastics pollution; and (ii) support for 
the progress made under the IDP so far, and encouraged concrete steps going f orward.  
1.7.  One delegation commented that while Members were free to discuss trade and environment 
issues of interest to them and share relevant information with the Committee, it was their view that 
certain proposals by Members are not part of the multilater al process.  
 
8 IDP's third meeting was held on 21 June 2021 and focused on the topics of policy coherence, capacity 
and technical assi stance needs, and collective approaches. It was co -chaired by Barbados and Ecuador.  WT/CTE/28/Rev.1  
 
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  1.2.2   Briefings on national efforts related to plastics pollution  
1.8.  At the March  and October  meeting, the Central African Republic  briefed the Committee on 
national efforts to combat plastic pollution. Under the department in charge for the environment, 
the Central African Republic had established national policies, decrees and laws which created a 
comprehensive environmental regulat ory framework, which included a ban in June 2020 on non -
biodegradable plastic bags and packaging, their storage and sale, to preserve air quality, land 
quality, water quality, and ensure people's quality of life, as wells as a special unit created to monit or 
and enforce environmental violations. A sub -committee on trade and environment was established 
as a further step to support implementation of the import ban. One delegation noted that this 
concrete case perfectly illustrated the need to share informatio n amongst Members on the issue of 
plastic pollution and encouraged the Central African Republic to join the TESSD and the IDP which 
may address the topics presented. The Central African Republic, consequently, at the October  
meeting, made a presentation on  a private initiative in plastics recycling aiming at banning the 
production, import, commercialization, and distribution of non -biodegradable plastic bags.  
1.9.  At the  June and October  meetings, Canada  briefed delegations on developments in trade and 
the circu lar economy. Canada hosted the World Circular Economy Forum 2021 (WCEF) with the 
Finnish Innovation Fund, Sitra, and in collaboration with partner organizations, virtually, from 13 to 
15 September 2021. The Forum was a global event that brought together bu siness leaders, policy 
makers, and experts to present circular economy solutions to accelerate the global transition to a 
circular economy.  
1.10.  At the June meeting, Norway  informed the Committee that it had finalized the strategy for a 
green, circular economy and that Norway was finalizing and updating a revised strategy on plastics. 
The Kingdom of Saudi Arabia  noted that the Circular Carbon Economy (CCE) framework, introduced 
by the Kingdom of Saudi Arabia and endorsed by the G20 leaders in 2020, was inclusive , integrated, 
and holistic. The CCE covered not only materials waste but also emissions by fully utilizing all 
technologies to address these challenges. Rather than top -down, it was an approach that captured 
national circumstances and needs and encouraged cooperation.  Chad, on behalf of the Least 
Developed Countries ( LDC) Group, noted that technical assistance, capacity building, and technology 
transfer would be vital for LDCs in the context of the circular economy.  
1.11.  At the  October meeting , Morocco  presented  its national strategy "Littoral sans plastique" , 
plastic-free coastline . The strategy was in line with the recommendations of the New Development 
Model adopted by Morocco, intended  to privilege the logic of a circular economy integrating local 
specificities and potentialities. One member underscored that more effective waste plastic  
management along with the role of international co operation  and trade would be more beneficial to 
address plastic waste pollution and encouraged further knowledge and information sharing in this 
area. Another member  commended Morocco's effort to tackle pl astics pollution and underscored the 
need to address the issue together in the WTO while ensuring that there were synergies with the 
processes under  the United Nations Environment Assembly ( UNEA ).  
1.2.3   Other briefings  
1.12.  At the March  meeting, the United Nations E nvironment Programme  (UNEP)  presented its 
report "Trade in Used Vehicles"9 released in 2020. Based on an in -depth analysis of 146 countries, 
the report found that some two -thirds of countries had "weak" or "very weak" policies to regulate 
the import of us ed vehicles. This could have an impact on air quality, greenhouse gas (GHG) 
emissions and road safety, among other issues. A few delegations  noted that UNEP's report 
contributed to a better understanding of global trends and issues related to trade in used  vehicles.    
1.13.  At the June meeting, the WTO Secretariat  presented the new WTO e -Learning course on Trade 
and Circular Economy. Some delegations highlighted the usefulness of this e -learning tool for 
explaining the links between trade and circular economy.  
 
9 UNEP, Global Trade in Used Vehicles, 26 October 2020; available at: 
https://www.un ep.org/resources/report/global -trade -used-vehicles -report . WT/CTE/28/Rev.1  
 
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  1.3  Other 
1.3.1   Trade Aspects of the European Green Deal  
1.14.  At the March meeting, the European Union  (EU) updated delegations on trade relevant aspects 
of the European Green Deal. The European Union presented its new trade policy communication 
adopted on 18  February 202 1, entitled "Open, Sustainable and Assertive Trade Policy"10. The 
European Union highlighted a series of critical areas where its trade policy would focus in the medium 
term, including seeking the adoption of WTO reforms focused on sustainability; supporting the green 
transition; promoting responsible and sustainab le value chains; and setting up a Carbon Border 
Adjustment Mechanism (CBAM). The European Union also introduced its plan to minimize the risk of 
deforestation and forest degradation associated with products placed on the EU market and its Farm 
to Fork stra tegy, which aimed to support a sustainable food system by, among others, reducing the 
use of chemical pesticides, fertilizers and antibiotics.   
1.15.  Several delegations recognized the importance of the objectives pursued by the EU Green 
Deal. Other delegations encouraged the European Union to further consult with other Members. The 
following points were also highlighted: the importance of respecting the principle of common but 
differentiated responsibilities and respective capabilities (CBDR -RC) under the Paris Agreement on 
Climate Change; the importance of making sure that the CBAM was implemented in a manner that 
was compatible with WTO commitments and other international obligations; the need for the 
developing world to receive further assistance to ensure tha t it can develop while protecting 
biodiversity. Another delegation indicated that its CCE framework, which was endorsed by the G20, 
was a better approach than the one proposed by the European Union.  
1.16.  At the June meeting, the European Union  informed that its relevant climate and energy 
legislation would be aligned with the target of reducing emissions by at least 55% by 2030. This 
would be brought together in a "Fit for 55" Package, which would be presented on 14 July 2021 and 
would include legal proposals on pricing, targets and regulatory standards. The EU Emissions Trading 
Scheme (ETS) would be strengthened and extended to maritime activity. A new system for emissions 
from road transport and buildings was being considered. Other instrument s were the Energy 
Taxation Directive, aimed to align the fiscal policies with climate ambition, and the CBAM.  
1.17.  Many delegations took the floor in reaction to this presentation, some to recognize the 
importance of the objectives pursued by the EU Green Deal  and some other to encourage the 
European Union to further consult with other Members and to provide additional information with 
respect to the trade -related initiatives in the European Green Deal. A few delegations requested 
further information on the EU' s action plan for organic production. One delegation asked for 
elaboration on the methodology that would be used to measure the carbon content of products.  
Other points made included: a mention that concerns about the proposed CBAM had also been raised 
in the Council for Trade in Goods and the Market Access Committee; a reference to a paper outlining 
key issues that should be taken into account in designing the CBAM circulated by a delegation; the 
need to take into account different levels of development; a nd the importance of including a 
transition period.  
1.18.  At the October  meeting, the European Union 's focused on its proposed CBAM. The CBAM is 
one proposal in the Climate package and its objective is addressing the risk of "carbon leakage" if 
the climate ambit ion is not shared globally . In essence, pursuant to the CBAM, imports will need to 
pay a carbon adjustment, corresponding to the price they would have paid if the goods had been 
produced under the EU's carbon pricing rules (i.e. the EU ETS). Any difference s between the CBAM 
and the EU ETS will remain minor and duly justified. Moreover, the CBAM is designed to avoid any 
"double pricing". Thus, if a non -EU producer can show that it has already paid a carbon price for the 
production of the imported goods in a third country, that amount can be deducted for the EU 
importer. In terms of sectoral coverage, the first phase of implementation would focus on a few 
carbon intensive sectors with high risk of carbon leakage (i.e. cement, iron and steel, aluminium, 
fertilizer, and electricity). In a second phase, authorities would consider expanding the scope to 
other sectors and indirect emissions. The CBAM will be phased in gradually starting in 2023 with a 
transitional phase during which only information on actual emissi ons would be collected. From 2026 
onwards, CBAM would gradually replace the free allowances under the EU ETS.  
 
10 Available at: https://trade.ec.europa.eu/doclib/docs/2021/february/tradoc_159438.pdf  WT/CTE/28/Rev.1  
 
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  1.19.  A number of delegations encouraged the European Union to further consult with other 
Members and to provide additional information with respect to  the CBAM's legislative process. 
Several WTO Members stressed the importance of the principle of CBDR -RC under the Paris 
Agreement and of ensuring that the CBAM is implemented in a manner that is compatible with the 
WTO. Additional points included: the imp ortance of making sure that trade measures are fit -for-
purpose and do not constitute a disguised restriction to international trade; and the need to ensure 
that the adoption of carbon prices do not increase distortions to competition or impose too many 
regulatory requirements. The following questions were also asked: ways, if any, would the CBAM 
take into account the strict environmental standards that it enforces; how the carbon pricing imposed 
by other countries would be taken into account. Finally, a few  delegations expressed their support 
for further discussions on the liberalization of environmental goods and services.   
1.3.2   National experience sharing  
1.20.  At the March  meeting, the Maldives  presented on Maldives' efforts to promote sustainable 
trade and green re covery. The Maldives Strategic Action Plan 2019 -2023, incorporated goals to 
address environmental protection and preservation. The Maldives had taken steps to phase out 
single -use plastics and was expected to fully phase out single -use plastics by 2023. Th e Maldives 
had adopted policies to promote the trade of energy -efficient products and of environment -friendly 
products. Duties had been eliminated on several products including, electric vehicles integrated with 
renewable energy, energy -efficient lights, s olar-powered products, and solar power systems. 
Furthermore, duties levied for non -biodegradable products such as plastic bags and polythene films 
had been increased. In addition, Maldives was encouraging the production of sustainably sourced 
produce. A fe w delegations welcomed the efforts by Maldives to promote environmentally friendly 
products and the transition to a circular economy.  
1.21.  Pakistan  presented one of the early cases of successful transition to a sustainable business in 
Pakistan, in a presentatio n entitled "Clean Green Pakistan – A business perspective". As Pakistan 
was at high risk of the impacts of climate change, the Pakistani Government had launched the 
initiative "Clean and Green Pakistan". The Prime Minister had also undertaken a large and a mbitious 
project known as the "Billion Trees Tsunami", which was a plan to plant a billion trees in the following 
three years. Pakistan's presentation highlighted that sustainability and growth were not mutually 
exclusive, however, there were numerous chal lenges that came with the opportunities that a green 
economy offered. It made perfectly good business sense for firms in developing countries to go 
green, provided they had the right set of incentives.  
1.22.  The United Kingdom  provided information on activities related to making supply chains more 
sustainable. Key to this discussion of supply chain sustainability was how to tackle deforestation and 
land degradation, which was the second largest source of GHG emissions annually, a major driver 
of biodiversity loss  and associated with heightened risk of zoonotic disease. Some delegations 
commended the United Kingdom's efforts to promote the development of sustainable supply chains  
and one delegation expressed support for discussions on this important area at the WTO . 
1.23.  At the October  meeting, the United Kingdom  further updated its recent activities, such as the 
Forest, Agriculture and Commodity Trade (FACT) Dialogue alongside Indonesia as co -chairs. FACT 
was an initiative launched by COP26 Presidency involving over 25 countries and aiming to develop 
a roadmap of actions to protect forests and other vital ecosystems, while promoting sustainable 
supply chains, trade and development.  A central aim was to agree on principles for producer and 
consumer collaboration , develop a shared roadmap of actions and to break the link between 
commodity production and net deforestation globally by fostering a dialogue based on partnership. 
The participants had jointly identified  a range of actions that , when taken together, could support 
protecting forests and other vital ecosystems, while promoting trade and development. The 
United  Kingdom encouraged the wider WTO  membership to support the FACT Dialogue 's outcomes 
and aims. Look ing forward to 2022, the United Kingdom emphasized its belief that the CTE was the 
appropriate forum for Members to share their existing best practices related to measures in place to 
support sustainable supply chains, particularly for commodities at high risk of causing deforestation.   
1.24.  At the June meeting, t he Maldives  presented some of the main obstacles it faced while 
pursuing sustainable fisheries. Industrial and unsustainable fishing could result in overfishing and 
depletion of fish stock. Obstacles fa ced included labelling requirements in the main export markets 
with certification costs and requirements that were unrealistic for small and artisanal fishers engaged 
in pole and line fishing - a sustainable form of fishing practiced in Maldives. Market ac cess for WT/CTE/28/Rev.1  
 
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  sustainably fished tuna in the Maldives was also a challenge with high tariffs (and no preferences) 
for the tuna exported from Maldives.  Some possible options to tackle these obstacles was also 
presented, including tariff preferences for sustainab le fish and fish products in GSP schemes to 
provide the requisite incentives to sustainable fisheries.  One delegation noted  that coordinated, 
coherent, and collaborative action was required to address sustainable fisheries management  and 
mentioned the ongo ing WTO fisheries subsidies negotiations.  
1.25.  Paraguay , on behalf of Argentina, Brazil, Chile, Paraguay, and Uruguay, introduced the 
submission "Principles and Values of the Region for Food Production in the Framework of Sustainable 
Development at the XLII Reg ular Meeting of the Southern Agricultural Council (CAS)"11. Paraguay 
noted that food production systems were vulnerable to the adverse effect of climate change. The 
international community needed global agreements and mechanisms to ensure food security, 
sustainable development, common but differentiated responsibilities, just transition and respect for 
local diversities, payments for ecosystem services, gender and indigenous peoples and international 
trade and cooperation. Paraguay also stressed that countr ies with primary responsibility for GHG 
had to provide adequate economic and technological tools that allow developing countries to produce 
sustainably. Brazil  said that this declaration illustrated Brazil's efforts to ensure that the policies and 
practice s of other Members did not undermine the right and ability to foster agribusiness with social 
and environmental responsibility.  Some delegations highlighted the importance of promoting 
sustainable development, food production and food security. One  delegation underscored the 
importance of reducing trade distorting domestic support in agriculture and to  look closely at 
subsidies aimed at making the agriculture sector more sustainable. Another delegation expressed 
interest in exploring how the WTO cou ld help the transition to sustainable supply chains. One 
delegation recognized that agriculture, fisheries and sustainable forestry were critical to achieve net 
zero emissions and supported the nexus between agriculture and sustainability.  
2  MULTILATERAL ENV IRONMENTAL AGREEMENTS (MEAS), ITEMS 1 AND 5 OF THE CTE 
WORK PROGRAM ME 
"The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral 
environmental agreemen ts." 
"The relationship between the dispute settlement mechanisms in the multilateral trading 
system and those found in multilateral environmental agreements. " 
2.1  The United  Nations Framework Convention  on Climate Change (UNFCCC)  
2.1.1   Presentations  by the UNFCCC  
2.1.  At the March and October  meetings , the UNFCCC  briefed delegations on preparations for COP26 
and most pressing issues to be addressed. CoP26 in 2021 was especially important and most 
importantly, Parties had to agree on the rules to implement the Paris Agreem ent, table robust NDCs 
and continue to build climate ambition. In Glasgow, Parties would have to: fulfil promises previously 
made – especially on Nationally Determined Contributions (NDCs)  and finance; wrap up outstanding 
negotiation items; raise ambitions  in mitigation, adaptation and finance; and bring State and non -
State voices together to continue building climate ambition. There would be  four priority areas for 
discussion  at COP26 : (i) ambition in terms of mitigation of GHG emissions and adaptation to climate 
change; (ii) climate finance to meet the goal of providing USD100 billion annually to developing 
countries; (iii) transparency to lay out the ground for implementing the Enhanced Transparency 
Framework by all Parties; and (iv) the negotiations unde r Article 6 of the Paris Agreement that seek 
to engage the private sector through cooperative arrangements and carbon markets. One delegation  
committed to working with other Members to deliver on the USD100 billion climate finance goal.  
Another delegation stressed the vital imperative from the Pacific perspective of addressing climate 
change in the WTO.  
2.2.  At the March  meeting, Switzerland  noted that under the Paris Agreement, Switzerland had 
confirmed its target of 50% emissions reduction by 2030, while adjusting its target for 2050 to net 
 
11 See document WT/CTE/GEN/24 . WT/CTE/28/Rev.1  
 
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  zero. Switzerland noted it had concluded bilateral agreements with Peru and Ghana in 2020 to allow 
the implementation of foreign offsets in full integrity.  
2.1.2   United Kingdom's  update s on COP26  
2.3.  At the March , June and October  meeting s, the United Kingdom  provided an update to 
delegations on the planning and logistics for COP26, and the calendar of events leading up to the 
Conference in November. The United Kingdom noted that the shifts required to meet COP objectives 
would have implications for trade policy and the multilateral trading system. That included direct 
links, such as through the FACT Dialogue on sustainable land use and trade in forest risk 
commodities, as well as the wider impacts of changes such as the en ergy transition and the shift to 
zero emission vehicles. All such changes would impact how Members traded and the United Kingdom 
looked forward to continued dialogue in the WTO. N ational commitments were at the heart of the 
outcomes of COP26, including in the form of NDCs. The United  Kingdom urged WTO Members to 
sign up to priority sectoral commitments in the area of:  (i) Energy Transition by signing the Coal to 
Clean Power statement; (ii) Finance by mobilizing resources to achieve the USD100 billion clima te 
finance goal; (iii) Transport by aiming to sign the Joint Statement on the Transition to Zero Emission 
Vehicles; (iv) Nature by signing the Glasgow Leaders' Declaration on Forests and Land Use; and 
(v) Adaptation by urging countries to come forward with  an Adaptation Communication ahead of 
COP26.  
2.1.3   Update from  New Zealand on the Agreement on Climate Change, Trade and 
Sustainability (ACCTS)  
2.4.  At the March , June and October  meetings, New Zealand  provided an update on the negotiations 
under the A greement on Climate Change, Trade and Sustainability" (ACCTS)  initiative, which is being 
negotiated by Costa Rica, Fiji, Iceland, New  Zealand, Norway and Switzerland.12 ACCTS covers four 
key pillars : the removal of tariffs on environmental goods; the establishment of new and binding 
commitments for environmental services; the establishment of disciplines to eliminate harmful fossil 
fuel subsidies; and the development of guidelines  for voluntary eco -labelling programmes and 
institutional mechanisms to s upport their implementation. New Zealand provided updates on 
progress across the four working groups.  
2.5.  On environmental goods, drawing on extensive discussions under other fora such as the 
Asia-Pacific Economic Cooperation ( APEC) and the WTO Environmental Goods Agreement (EGA) 
negotiations, participants had further expanded the list of consensus environmental goods, which 
was largely derived from HS chapters 84 and 85, while including nominations across other NAMA HS 
chapters. This had allowed participants to develop a comprehensive environmental goods "long list". 
On services, participants were seeking to expand the definition of environmental services beyond 
CPC 94, in particular services that increase the output and efficiency of environmental goods and 
infrastructure. On eco -labelling, the development of guidelines for voluntary eco -labelling 
programmes is well -advanced, alongside the institutional mechanisms to support their 
implementation. Finally, on fossil fuel subsidies, participants had discussed sc ope and definitional 
questions in detail, seeking to balance ambition with effective implementation of disciplines to 
eliminate harmful fossil fuel subsidies. P ositive steps were taken for developing disciplines on the 
elimination of harmful fossil fuel su bsidies.   New Zealand undertook to keep the Committee updated 
on the progress of negotiations, noting the agreement will remain open to other WTO Members 
wishing to join.  
2.2  MEAs dealing with chemicals and wastes (the Basel, Rotterdam and Stockholm (BRS) 
Conv entions)  
2.2.1   BRS Conventions briefing  on recent activities  
2.6.  At the  March meeting, the Basel, Rotterdam and Stockholm (BRS) Conventions (UNEP ) briefed 
delegations on latest developments . On 1 January 2021, the new entries introduced in the annexes 
to the Basel C onvention following the "Plastic Waste Amendments" had become effective for 
186 Parties. A few delegations welcomed  the entry into force of the new rules on plastic waste under 
the BRS and invited all WTO Members to implement them.  One delegation noted the  different entities 
 
12 See document RD/CTE/196 . WT/CTE/28/Rev.1  
 
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  dealing with plastic pollution  all had comparative advantages and there was a need to avoid 
duplication, and to work towards establishing added value for informed decision -making.  
2.2.2   WTO Matrix on Trade -related Measures Pursuant to Selected MEAs  
2.7.  At the March  meeting, t he WTO Secretariat  introduced the updated Matrix on Trade -related 
Measures Pursuant to Selected Multilateral Environmental Agreements (MEA Matrix).13 One 
delegation noted the MEA Matrix was a very useful tool to underst and the nexus between trade and 
environment  and encouraged the Secretariat to continue updating the tool.  
2.8.  At the March meeting, UNEP  introduced the InforMEA14 initiative, a collaboration between 
several MEAs, co -chaired by UNEP's Law Division and the Conve ntion on International Trade in 
Endangered Species of Wild Fauna and Flora (CITES). It involved 25 Secretariats within five 
United  Nations organizations and the International Union for Conservation of Nature (IUCN). The 
main objective of InforMEA was to pr ovide a centralized searchable database linking all MEA 
databases and websites and ensuring their interoperability. A recent InforMEA Steering Committee 
meeting had approved a recommendation to explore a solution to integrate trade information in the 
platform. Two options had been devised: linking the InforMEA to MEA information available in the 
WTO MEA Matrix; or identifying where environment was reflected in trade agreements. UNEP had 
decided to start with the MEA Matrix as a first pilot solution.  
3  TRANSPA RENCY  OF ENVIRONMENT -RELATED TRADE MEASURES (ITEM 4 OF THE CTE 
WORK PROGRAMME)  
"The provisions of the multilateral trading system with respect to the transparency of 
trade measures used for environmental purposes and environmental measures and 
requirements  which have significant trade effects ." 
3.1  WTO Environmental  Database  
3.1.   At the March  and October  meetings, the WTO Secretariat  informed delegates that the 
Environmental Database (EDB) report for 2019 had been circulated in document WT/CTE/EDB/19. 
Data collection for 2020 was under way using a new EDB data entry platform. The WTO Secretariat 
also informed that the keyword  "plastic " has been added for purpose of data collection.  Additionally, 
it was explained  that the new EDB platform allows now data to be published in a more efficient and 
timely way. 
4  TECHNICAL ASSISTANCE  AND CAPACITY BUILDING, PAR. 33 OF THE DOHA 
MINISTERIAL DECLAR ATION  
"We recognize the importance of technical assistance and capacity building in the field 
of trade and environment to developing countries, in particular the least  developed 
among them. We also encourage that expertise and experience be shared with mem bers 
wishing to perform environmental reviews at the national level. " 
4.1  Trade and Environment -related Back -to-Back Sessions  
4.1.  At the March  meeting , Barbados  report ed on a high-level panel discussion on " Trade, the 
Environment and Sustainability: A Focus on Gr een Recovery in a COVID -19 Era" . The high -level 
event , co-hosted on 29 March 2021 by the Permanent Mission s of Barbados and Maldives , was aimed 
at expanding the policy dialogue on trade and its nexus with the environment and sustainability as 
well as green  recovery in the aftermath of the COVID -19 pandemic and placed a specific focus on 
the issues of food security, promoting global and regional supply and value chains.  Guatemala  
briefed the CTE on the joint event co -hosted by the Permanent Missions of Guatemala and Finland 
on "Sustainable business and circularity - why does sustainability make business sense", which was 
organized in collaboration with the International Chamber of Commerce  (ICC).  
 
13 WT/CTE/W/160/Rev.9, TN/TE/S/5/Rev.7.  
14 The tool can be accessed at: www.informea.org . WT/CTE/28/Rev.1  
 
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  4.2.  At the June meeting , Barbados  reported on an event entitled "COVID -19 and green economic 
recovery: What role for sustainable tourism?", which was co -hosted by Barbados and the Maldives 
in collaboration with the WTO Secretariat on 22 June 2021. The event aimed at exchanging 
knowledge on "building back better" in the tourism sector.  
4.3.  At the October  meeting, New Zealand  reported on a side event15 organized in partnership with 
the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) to launch 
the Asia -Pacific Trade and Investment Report 2021. The report underscored the urgent need for 
economies in the Asia -Pacific region to reduce GHG emissions, and the opportunity to align trade 
and investment policies in pursuit of climate ac tion. 
4.2  Update on Other Seminars and Webinars  
4.4.  At the March meeting, Canada  reported on a webinar hosted on 4 March 2021 and entitled 
"Border Carbon Adjustments ( BCAs): Issues, Options and Impacts". A key takeaway from the 
webinar was that dialogue, transpare ncy and coordination were important, as efforts on BCAs 
progressed, especially from a trade policy perspective. Effective coordination also meant a dialogue 
with stakeholders as this issue moved forward.  One delegation appreciated the diversity of technica l 
expertise and the detailed consideration of the technical, legal, and other issues that needed to be 
addressed during the design and implementation of a BCA.  
5  RELEVANT PROVISIONS OF THE TRIPS AGREEMENT, PARAGRAPH 32(II) OF THE DOHA 
MINISTERIAL DECLARATION  − ITEM 8 OF THE CTE WORK PROGRAMME  
The relevant provisions of the Agreement on Trade -Related Aspects of 
Intellectual Property Rights.  
5.1.  At the June meeting, the WTO Secretariat  gave a presentation on the 2021 WTO Workshop on 
the Implementation of the Agreement on Trade -Related Aspects of Intellectual Property Rights 
(TRIPS) Article 66.2: Incentive for Technology Transfer for LDCs in the Area of Environment.  One 
delegation noted that t he implementation of Article 66.2 remained a priority for LDCs in their work 
at the WTO . A few delegations highlighted their involvement in the workshop.  
6  MEMBERS' PROPOSAL ON TRADE AND ENVIRONMENTAL SUSTAINABILITY  
STRUCTURED DISCUSSIONS (TESSD)  
6.1.  At the  March  meeting, Canada  informed that the co -convenors would circulate a draft work 
plan for the year with a view to guiding the work of TESSD towards MC12. Canada indicated that 
MC12 would likely allow TESSD to articul ate the vision for work in the post -MC period in the form of 
a ministerial statement. The following comments were made: cooperation was essential to address 
trade and environmental sustainability issues and provide deliverables at MC -12; negotiations  on 
environmental goods and services had to take place in the "Special Sessions" of the Committee on 
Trade and Environment (CTESS) ; the risk of proliferation of initiatives outside of the WTO's formal 
structure to address issues that should be considered within the WTO's formal structure  was outlined .  
6.2.  At the June meeting, Costa Rica , briefed delegations on the work of TESSD, including its second 
regular meeting held in May 2021. Topics discussed included environmental goods and services 
trade, green Aid for Trade, FFSR, trade -related climate measures, including BCAs and greening trade 
(with a focus on circular economy and priorities for developing countries). Costa Rica  underscored 
the interest among TESSD participants to issue a Ministerial Declaration at MC12, along with areas 
of work for the post -MC12 period. TESSD was open to participation for all WTO Members and sought 
to complement the CTE's work. After Costa Rica' s briefing, many  delegations supported the work on 
a Ministerial Declaration. One delegation underscored the importance of multilateral and consensus -
based approaches that were open, transparent, and inclusive and took into consideration specific 
national circumstances. Another delegation was concerned that TESSD would undermine the work 
of the CTE and the CTESS.  
 
15 The event was hosted on 11 October 2021. See https://unctad.org/meeting/global -launch -asia-
pacific -trade -and-investment -report -2021-accelerating -climate -smart . WT/CTE/28/Rev.1  
 
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  6.3.  At the October  meeting, Costa Rica  provided an update on its recent activities, including the 
advancement of a possible Ministerial statement for MC12. Costa Rica highlighted that Members 
seemed particularly interested  on the approach that the TESSD could provide to the discussion on 
environmental goods and services. During the discussion, many  delegations  expressed their support 
to the TESSD as co -sponsors and underscored its importance to an actionable path on trade and 
environmental sustainability for the post‑MC12 period.  They encouraged other Members to join this 
Ministerial statement to demonstrate collective contribution to common climate and environmental 
goals. One Member articulated that such progress in the TESSD would further strengthen this 
Committee.  
6.4.  One delegation commented that while Members were free to discuss trade and environment 
issues of interest to them and share relevant inform ation with the Committee, it was their view that 
certain proposals by Members are not part of the multilateral process.  
7  RELATIONS  WITH INTERGOVERNMENTAL AND NON -GOVERNMENTAL ORGANIZATIONS, 
ITEM 10  
7.1  Briefing by New Zealand on Trade and Environment Initiative s by APEC  
7.1.  At the June meeting, New Zealand , as host of APEC 2021,  provided an update on Trade and 
Environment Initiatives by APEC , and the APEC Ministers Responsible for Trade virtual meeting joint 
statement 2021. Ministers reaffirmed the commitment to rationalize and phase out fossil fuel 
subsidies that encourage wasteful consumption, while recognizing the importance of providing th ose 
in need with essential energy services. Ministers tasked officials to explore options, for those 
members that are in a position to do so, to undertake a potential voluntary standstill on inefficient 
fossil fuel subsidies and to report on progress to Mi nisters in November.  Ministers also acknowledged 
the importance of capacity building initiatives to support economies in this process. On 
environmental goods, Ministers tasked officials to commence work on reviewing the implementation 
of the original list  of environmental goods that was agreed in 2012, and to update the list in terms 
of HS tariff classifications for reference purposes. Moreover, Ministers have noted APEC's efforts to 
discuss the impact of non -tariff measures on trade in environmental goods . One delegation was 
concerned about bringing to the WTO negotiations that took place in other fora, such as APEC. 
Another delegation welcomed that the statement highlighted that trade could serve as enabler to 
achieve environmental sustainability targets.  
7.2  Briefings  by other  Observer  Organizations  
7.2.  At the March  meeting, t he World Customs Organization ( WCO)  explained that the  WCO ha d 
launched a new theme for 2021 , under the slogan "Customs bolstering Recovery, Renewal and 
Resilience for a sustainable supply c hain", leading the global customs community to the sustainability 
of supply chains by enhancing collaboration with stakeholders, using innovative technology and 
focusing on resilience and preparedness.  The WCO Environment Programme was also leading the 
efforts of the Basel Convention Plastic Waste Partnership sub -group preparing a plastic waste 
enforcement guide.  
7.3.  The United Nations Conference on Trade and Development (UNCTAD)  drew attention to 
UNCTAD's activities relating to climate change, oceans economy, circular economy and BioTrade. 
The recently published 2021 edition of the Trade and Environment Review examined the physical 
impacts of climate  change and their effects on de veloping country economies and trade; the 
vulnerabilities of developing countries to climate change; costs and finance for climate change 
adaptation; and, finally, ways that developing countries could enhance their trade -climate readiness, 
i.e. enhance the  resilience of their trade to climate change through adaptation actions and economic 
diversification.  
7.4.  At the March , June and October  meetings, the Organisation for Economic Co -operation  and 
Development (OECD ) updated the Committee on its recent work on tra de and environment, including 
on trade and circular economy, government support for fossil fuels; the nexus of illegal trade 
environmental crime; and environmental effects of regional trading blocs and reshoring amid 
COVID -19. WT/CTE/28/Rev.1  
 
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  7.5.  At the  June meeting, the World Bank  mentioned that climate change and environmental 
sustainability stood at the very core of the World Bank's evolving development agenda. The World 
Bank did two things in this area: analytics, because this was an area in which there was a need for 
better data and better metrics of measurement, and strategic support and lending. The World Bank, 
when lending, used a Climate Change Action Plan (CCAP). The United Nations Industrial 
Development Organization (UNIDO)  updated delegations on UNIDO's Global Consu ltations on 
Circular Economy, which were held virtually from 10 -12 May 2021.  
7.6.  At the October  meeting, the International Trade Centre (ITC)  presented its Climate and 
Environmental Risk Assessment (CERA) which was a tool for addressing climate and environmen tal 
risks in agri -food value chains.  
8  CTE CHAIR'S BRIEFING ON MC12 -RELATED CONSULTATIONS AND MEMBERS' 
SUGGESTIONS  
8.1.  At the June and October meeting s, the Chair updated the Committee on his consultations 
relating to the work of the CTE and to potential input to  MC12.  In this context, the Chair reported 
delegations overall supported furthering the role of the CTE in discussing  key environment issues, 
noting in par ticular the essential work of the CTE in relation to: (i) enhancing transparency, via, for 
example, the  Environmental Database and the MEA Matrix; (ii) continuing to play a role of forum for 
discussion and experience sharing as the Committee had conducted on a regular and active manner; 
(iii) highlighting the importance of new ideas and contributions to sustainable development and 
environmental protection as provided by the WTO Preamble, including in relation to achieving the 
Sustainable Development Goals a s mandated by leaders, as well as in response to climate crisis; 
(iv) recognizing the importance of making sure that the overall CTE mandate was still up -to-date 
and that CTE processes were fit to address the challenges of the 21st century.  
8.2.  At the October  meeting , many delegations reiterated their strong support for the significant 
work of the Committee in: (i) the nexus of trade and environment ; and (ii) continuing to play the 
role of forum for discussion and experience sharing.  Many delegations also  expressed their support 
for a general reference in an outcome document of MC12 to trade and environment work, climate 
change, environmental sustainability  and the work of CTE in addressing environmental issues  with 
an impact on trade .  
8.3.  For instance, one delega te suggested draft text for the MC12 outcome document, including: 
(i) contextualization of the global challenges, such as climate and the environment ; (ii) recognition 
of the multilateral trading system's positive role in addressing these challenges; (iii)  the importance 
of a sustainable and inclusive approach to trade taking into account legitimate development 
requirements of many WTO Members, in all areas of WTO work; (iv) further mainstreaming 
environmental and climate considerations through the work of the WTO and reaffirming the role of 
the CTE as a forum to discuss environmental and climate measures with an impact on trade ; and 
(v) putting discussions on "trade and environment" on the agenda of MC12, so that Ministers could 
discuss how to change the wr ong perception that trade was bad for the environment and the critical 
and positive role the CTE had been playing to address it. Similarly, another delegate expressed that 
it would be supportive of a reference in an MC12 document to  trade, environment, and  climate 
change, including to: (i) the trade and environment work, including climate change, at the WTO; 
and (ii) the importance of mutually supportive trade and environmental policies.  
8.4.  A few delegations reiterated the importance of inclusiveness in the di scussions on 
environmental sustainability at WTO, by focusing on  the interests of developing countries and LDCs . 
One delegation cautioned against pushing  for the inclusion of language in  the Ministerial Statement 
that would attempt to change the mandate of  the CTE. Another  delegation said that the WTO was 
not the appropriate forum to  discuss climate change mitigation and should rather continue to be 
discussed in other relevant  international for a. 
8.5.  The Chair thanked and noted all delegations and noted their c onstructive inputs and proposals 
on potential ministerial guidance at MC12, including so as to further the Committee's contribution to 
core trade and environment questions and to ensure the Committee's continued relevance to the 
trade and environment debat e. Delegations were encouraged to continue reflecting on this very 
important issue, and the Chair would continue to be available to delegations, the General Council 
Chair and to the Director -General in the lead up to MC12.  
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