RESTRICTED  
  
WT/CTE/M/74  
 
25 May 2022 
  
(22-4061) Page: 1/27 
Committee on Trade and Environment    
 
  
REPORT OF THE MEETING HELD ON 2 FEBRUARY 2022  
NOTE BY THE SECRETARIAT1 
The Committee on Trade and Environment (CTE Regular) met on 2 February  2022, chaired by 
H.E. Mr Manuel  A.J. Teeha nkee (The Philippines). The Committee adopted the Airgram, 
WTO/AIR/CTE/ 17, dated 19 January 2022 . The Report of the last CTE meeting, held on  
12 October  2021, is contained in WT/CTE/M/73 . 
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Contents  
1   ENVIRONMENTAL MEASURES AND MARKET ACCESS, PARAGRAPH 32(I) OF 
THE DOHA MINISTERIAL DECLARATION – ITEM 6 OF THE CTE WORK 
PROGRAMME  ................................ ................................ ................................ ....... 4 
1.1   Circular Economy and Plast ics ................................ ................................ ........  4 
1.1.1   Briefing by Australia on the work of the Informal Dialogue on Plastics Pollution and 
Environmentally Sustainable Pla stics Trade (IDP)  ................................ .....................  4 
1.2   Fossil Fuel Subsidy Reform (FFSR)  ................................ ................................ .. 6 
1.3   European Union (EU) Green Deal  ................................ ................................ .... 8 
1.4   Other  ................................ ................................ ................................ .........  12 
1.4.1   United Kingdom's update on activities related to making supply chains more 
sustainable  ................................ ................................ ................................ ........  12 
2   TECHNICAL ASSISTANCE AND CAPACITY BUILDING, PARAGRAPH 33 OF THE 
DOHA MINISTERIAL DECLARATION  ................................ ................................ .. 14 
2.1   Update on seminars and webinars  ................................ ................................ .. 14 
3   MULTILATERAL ENVIRONMENTAL AGREEMENTS (MEAS), ITEMS 1 AND 5 OF 
THE CTE  WORK PROGRAMME  ................................ ................................ ............  14 
3.1   United Nations Framework Convention on Climate Change (UNFCCC)  ..................  14 
3.1.1   United Kingdom's update on the 26th session of the Conference of the Parties 
(COP26) to the UNFCCC  ................................ ................................ .......................  14 
3.1.2   UNFCCC's update on COP26  ................................ ................................ ....... 16 
3.1.3   New Zealand's update on negotiations towards the Agreement on Climate Change, 
Trade and Sustainability (ACCTS)  ................................ ................................ ..........  16 
4   TRANSPARENCY OF ENVIRONMENT -RELATED TRADE MEASURES, ITEM 4 OF 
THE CTE  WORK PROGRAMME  ................................ ................................ ............  17 
4.1   WTO Secretariat's update on the Environmental Database 2020  .........................  17 
 
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice to 
the positions of Members or to their rights and obligations under the WTO.  WT/CTE/M/74  
 
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  5   MEMBERS' SUGGESTIONS AND PROPOSALS  ................................ .................  20 
5.1   Canada's update on behalf of the Coordinators of t he Trade and Environmental 
Sustainability Structured Discussions (TESSD)  ................................ ........................  20 
6   RELATIONS WITH INTERGOVERNMENTAL AND NON -GOVERNMEN TAL 
ORGANIZATIONS, ITEM 10 ................................ ................................ ................  22 
6.1   Briefings by other observer organizations  ................................ ........................  22 
6.1.1   World Customs Organization  ................................ ................................ ...... 22 
6.1.2   United Nations Industrial Development Organization  ................................ ...... 23 
6.1.3   United Nations Environment Programme  ................................ ......................  24 
 
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  ACRONYMS  
  
 ACCTS  Agreement on Climate Change, Trade and Sustainability  
CBAM  Carbon Border Adjustment Mechanism  
COP Conference of the Parties  
CTE Committee on Trade and Environment  
EDB Environmental Database  
EU European Union  
FACT Forest, Agriculture and Commodity Trade dialogue  
FFSR Fossil Fuel Subsidy Reform  
GATT 1994  General Agreement on Tariffs and Trade 1994  
IDP Informal Dialogue on Plastics P ollution and Environmentally 
Sustainable Plastics Trade  
LDCs Least developed countries  
MC Ministerial Conference  
MEAs  Multilateral Environmental Agreements  
NDC Nationally Determined Contribution  
SCM Agreement  Agreement on Subsidies and Countervailing Measures  
SDG Sustainable Development Goal  
SIDS Small, Vulnerable Economies, Small Island Developing States  
SMEs Small and Medium -sized Enterprises 
SPS Agreement  Agreement on the Application of Sanitary and Phytosanitary Measures  
TBT Agreement  Agreement on Technical Barriers to Trade  
TPR Trade Policy Review  
TESSD  Trade and Environmental Sustainability  Structured Discussions  
UK United Kingdom  
UNEA  United Nations Environment Assembly  
UNEP  United Nations Environment Programme  
UNFCCC  United Nations Framework Convention on Climate Change  
UNIDO  United Nations Industrial Development Organization  
WCO World Customs Organization  
  
 
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  1  ENVIRONMENTAL MEASURES AND MARKET ACCESS, PARAGRAPH 32(I) OF THE DOHA 
MINISTERIAL DECLARATION – 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 trade restrictions and distortions 
would benefit trade, the environment and development".  
1.1  Circular Economy and Plastics  
1.1.1   Briefing by Australia on the work of the Informal D ialogue on Plastics Pollution and 
Environmentally Sustainable Plastics Trade (IDP)  
1.1.  The representative of Australia  acknowledged the recent co-sponsorship by the Maldives of the 
Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastic s Trade (IDP), taking 
the IDP Membership to 68. The IDP Membership included a diverse group of WTO  Members including 
significant participation from developing country Members, Least Developed Country Members  
(LDCs) , Small , Vulnerable Economies, Small Island Developing States (SIDS),  and developed 
countries.  
1.2.  The last meeting of the IDP for 2021 was held on 22  October. The meeting was chaired by 
Ambassador George Mina  (Australia). All WTO Members  were invited and encouraged to attend the 
meeting, which was he ld in hybrid format through Zoom. The meeting also included stakeholder  
participation from a number of experts in the field of trade, environment and plastics. The agenda 
of the meeting included two key items . First, a  presentation of the IDP Factual Report , which 
consolidated and organized information presented and discussed at the IDP throughout the year. 
The report highlighted the evolution of the WTO's work on plastics pollution and mapped current 
international acti on with trade implications. The representative said that the document was valuable, 
recommended it to all WTO Members , and noted that  it was available on the WTO website.  
1.3.  Second, the meeting also included a discussion of the then draft Ministerial Statemen t, a full 
report of which was  available on the WTO website. Following the meeting , IDP co-sponsors worked 
to finali ze the draft Ministerial statement in preparation for the Twelfth Ministerial Conference  
(MC12) . Despite the postponement of MC12 , IDP co-sponsors released its Ministerial Statement on 
10 December (WT/MIN(21)/8/Rev.2). The launch of the Ministerial Statement highlighted the 
co-sponsors' commitment to continue work on this very critical issue. He said that IDP co-sponsors 
were committed to conti nuing work in an open, inclusive and transparent manner and that all 
WTO Members  were encouraged to co-sponsor the initiative and participate in IDP meetings.  
1.4.  The representative noted that the IDP had hosted a press conference on 15 December to 
highlight t he release of the Ministerial Statement. Ambassador Mina (Australia), 
Ambassador  Blackman (Barbados) and Ambassador Valencia (Ecuador) represented the IDP at the 
press conference , which had seen  significant participation from international media. The full video 
of the press conference is available on the WTO website  and the WTO news story includes some 
highlights. The IDP co-sponsorship was considering how to take its work forward and would report 
back to the CTE in due course.  
1.5.  The representative of Ecuado r said that her country was a proud co -coordinator of the IDP. 
The IDP had reached a balanced and pragmatic Ministerial Statement that outlined work for 2022 
and towards the next Ministerial and MC13 in areas such as capacity building and technical 
assista nce, fostering cooperation on data transparency, collaboration between international agencies 
and collective approaches. She said that the promotion of trade by addressing plastic s pollution and 
circularity and trade-related  cooperation could support effor ts to reduce unnecessary or harmful 
plastics and plastic products. The Ministerial Statement  and the work ahead outlined a balanced 
approach and was part of the global response to plastic s pollution. The representative emphasi zed 
the importance of proactiv e participation by diversity of IDP Members and relevant stakeholders, 
including international organi zations and institutions, environmental trade and customs authorities, 
as well as domestic private sector bodies, academia and civil society.  
1.6.  The represen tative said that cooperation with stakeholders was important for the work of the 
IDP in future interaction with the CTE. The IDP had demonstrated that collaboration between WT/CTE/M/74  
 
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  international organi zations and between the various stakeholders was effective and ha d built trust 
between the different actors in the field. In her national capacity, the representative said that 
Ecuador was also advocating for a new global instrument on plastics in the Fifth Session of the  
United  Nations Environment Assembly  (UNEA -5.2) and invited Members to join the discussions.  
1.7.  The representative of the United Kingdom  congratulated the co -conveners of IDP for their 
successful work in obtaining the Ministerial Statement las t year with an expansion of the 
co-sponsorship.  She said that the U nited Kingdom  was looking forward to working with the 
co-sponsors and all WTO Members  on this important issue, particularly as this year could see the 
launch of negotiations of a global pla stics agreement , which would contribute to reducing this 
significant environmental problem.  
1.8.  The representative of Switzerland  thanked the co -convenors for their work and efforts to 
develop a work programme for the IDP. She said that Switzerland welcomed t he successful launch 
of the Ministerial Statement last December and that so many Members had joined the important 
initiative. She thanked the co -conveners who had contributed to the success of this initiative. The 
representative said that Switzerland encou raged all Members to participate in this initiative and 
agreed to achieve concrete, pragmatic and effective results on the actions and understanding set 
out in the Ministerial Declaration no later than MC13 . 
1.9.  The representative of Canada  said that, as one o f the early co-sponsors, Canada was proud of 
the work accomplished last year, and welcomed all the new co-sponsors that had joined the IDP 
Ministerial Statement on 15 December. Discussions last year served the purpose of identifying a role 
for the WTO in a n area where several partner institutions have already launched work program mes 
that will contribute to global efforts to tackle plastics pollution. For discussions in 2022, it would be 
important to maximize momentum from 2021 and deliver tangible outcomes  to address plastics 
pollution.  She said that Canada believed that the IDP needed to encourage collaboration with 
international organizations that are examining plastic pollution. This will allow the IDP to avoid 
duplication of efforts and an opportunity t o provide Member 's expertise when trade considerations 
arise in those fora. The representative said that Canada also applauded the co -convenors ' 
commitment to including stakeholders in IDP discussions. Their perspective, experience and 
expertise were critical to the success of work in the IDP. She thanked the IDP co-sponsors for their 
continued engagement with WTO Members  and looked forward to achieving significant progress on 
this issue over the next twelve months.  
1.10.  The representative of  the Maldives  said that, as a S IDS, the Maldives economy largely 
depended on coastal and marine ecosystems and the biodiversity they harbour. The Maldives was 
reliant on healthy oceans for its two largest economic activities, namely tourism and fisheries. Due 
to this, the Maldives had taken several significant steps to phase out single-use plastics. In 
December  2020, President Ibrahim Mohamed Solih had ratified the 18th Amendment Bill to the 
Export -Import Act (31/79) of the Maldives. According to this Amendment,  starting  1 June 2021, the 
import of any goods declared as single -use plastic s was prohibited. The Amendment mandated the 
Government to compile and publicize the list of goods to be classified as banned single -use plastics, 
as well as to add or remove item s from the list in the future. This initiative would enable the Maldives 
to steadily phase out single -use plastic s by 2023, one of the Government's key environmental 
pledges. The representative said the Maldives was honoured to join the Ministerial Stateme nt on 
Plastic Pollution and Environmentally Sustainable Plastics Trade and looked forward to engaging 
constructively in the IDP as co-sponsors work ed on the structural transformation of their economies 
towards greater circularity.  
1.11.  The representative of Costa Rica  congratulated the IDP coordinators for the excellent work 
that had led to a Ministerial Statement on Plastics Pollution and Environmentally Sustainable Plastics 
last December. She said the Ministerial Statement was a remarkable achievement , which Costa Rica 
proudly co-sponsored , and that Costa Rica was glad to be part of the Informal Dialogue, as this was 
a global issue where trade could be a powerful tool that contribute d to its solution. Regarding the 
work for 2022, the represe ntative said that her delegation wished to reaffirm its commitment and 
willingness in giving this topic priority in the trade and environment agenda and welcomed the draft 
work program me that the coordinators had tabled. She encouraged the coordinators to frame the 
proposed workstreams in a manner that promoted efficient exchanges among the participating 
co-sponsors  to reach substantive outcomes in the near future. She said that the IDP could count on 
the support and collaboration of Costa Rica in this exci ting process ahead.  WT/CTE/M/74  
 
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  1.12.  The representative of Japan  said that , while it was a pity that MC12 had been postponed, 
Japan welcomed the adoption of the Ministerial Statement on 10 December last year. He said that 
Japan expressed its appreciation to the Members con cerned. The representative said that Japan had 
decided to join the declaration as a co-sponsor at the end of November last year. The representative 
said that Japan had proposed the "Osaka -blue Ocean vision ", which set the target of reducing 
additional poll ution from marine plastic litter to zero by 2050. In line with this vision, Japan was 
actively addressing the issue of marine plastic waste and looked forward to engaging constructively 
in the discussions.  
1.13.  The representative of China  welcomed the Maldives to IDP as the 68th co-sponsor. The 
representative said that as one of the six IDP coordinators, China joined Australia, Ecuador and other 
co-sponsors to encourage and welcome all WTO Members to join IDP discussion s and to share 
comments and sugges tions on the IDP and its 2022 Work Plan. All meetings of the IDP and its work  
streams would be held in an inclusive and transparent way, and open to all WTO Members and 
stakeholders. The representative said that the tiger symbolizes strength, vitality, int elligence, and 
fearlessness, all of which are qualities needed in the WTO, the CTE and  the IDP. The representative 
said his delegation looked forward to close cooperation with co-sponsors to achieve concrete 
outcomes in the IDP in the year of the tiger.  
1.14.  The representative of the United States  said that the United States was a strong supporter of 
circular approaches, which had substantial economic, environmental and social benefits and could 
play a significant role in climate change mitigation in addition to  supporting the achievement of the 
sustainable development goals  (SDGs) . He said that his delegation  encouraged the IDP co-sponsors 
to consider approaches to facilitating trade in recyclable materials, including plastic scrap, to support 
a more circular ec onomy.  These products had inherent economic and commercial value and support 
greater resource efficiency and circularity and required trade policies that facilitate rather than 
impede their movement to close the loop, and keep these materials in the econom y, out of landfills, 
and out of our oceans. He said that his delegation also noted the overlap in discussion topics between 
the IDP and the Trade and Environmental Sustainability Structured Discussions (TESSD ). He said 
that his delegation was interested in  understanding how the IDP views its relationship with the 
TESSD, and how the two informal dialogues will address issues of circular economy, in a 
complementary way, without creating confusion and redundancy. The United States remain 
interested in understa nding the trade -related  approach that the IDP will be taking to consider 
trade-related  elements that the WTO has competency in addressing. Trade facilitative policies are 
necessary to help minimize the need for virgin materials, and to keep products and th eir related 
materials in productive use in the economy for as long as possible.   
1.15.  The representative of Kingdom of Saudi Arabia  said that Saudi Arabia  believed that effective 
Waste Plastic Management was more useful  and efficient and , along with the role of international 
cooperation and trade, would be more beneficial to address the environmental aspects of plastic 
waste pollution. She said her delegati on encouraged further knowledge and information sharing in 
this area. With regard to circular economy, the representative said that achieving a more 
resource -efficient circular economy would depend on the holistic expansion of "circularity " beyond 
material  flow and encompassing emissions as well. In this context, the representative said that 
Saudi  Arabia believed in the key role that the Circular Economy and Circular Carbon Economy could 
play in achieving the goal of global sustainable trade. In other words , while the "Circular Economy " 
focused on material flow, the "Circular Carbon Economy " emphasized emissions management – both 
of which were complementary and important in accelerating global sustainable trade goals. The 
representative said that t he Kingdom  of Saudi Arabia would be delighted to share its experience in 
the deployment of the Circular Carbon Economy (CCE) with CTE Members.  
1.2  Fossil Fuel Subsidy Reform  (FFSR)   
1.16.  The representative of New Zealand  provided an update on the joint Ministerial Statement on 
the Fossil Fuel Subsidy Reform  (FFSR) issued in December2. He recalled that , when MC12 was 
postponed, it was decided to continue with the joint launch event virtually on 15 December.  A 
number of Ministers representing the more than  80 co-sponsors across the three initiatives had 
joined the Director -General in launching and celebrating these statements.  New Zealand report ed 
that 45  WTO Members  had signed on to the joint Ministerial Statement on FFSR. 
 
2 See document WT/CTE/GEN/28 . WT/CTE/M/74  
 
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  1.17.  In doing so, co-sponsors ha d called for the rationalization and phase  out of inefficient FFS 
that encourage d wasteful consumption along a clear timeline and  had committed to sharing 
information and experiences to advance the discussion at the WTO.  Co-sponsors continue d to 
recognize that reform need ed to take fully into account the specific needs and conditions of 
developing countries and  minimize the possible adverse impacts on their development.  His 
delegation  looked forward to engaging with co-sponsors in the  coming weeks to continue the 
important work , including to make good on the shared commitment to elaborate concrete options 
to advance th e issue at the WTO ahead of MC13.  
1.18.  The representative of New Zealand recalled the  last meeting in October at which he stated 
that the empirical evidence supporting the need for action on FFS to meet our climate change and 
sustainable development objectives was clear.  In his delegation's view, t he WTO was the appropriate 
forum to translate the commitments on FFSR made by the leaders at COP26 and in the SDGs  into 
concrete action . He emphasized that t he joint Statement remain ed open to new co-sponsors, and 
his delegation continue d to encourage Members who had not yet signed on to do so.  
1.19.  The representative of Switzerland  thanked New Zealand for its update on FFSR and for its 
leadership in this regard. Her delegation commended the successful launch last December of the 
Ministerial Declaration on FFSR and the high number of Members who suppo rted it. In her 
delegation's view , this initiative was essential to achieve the climate goals set by the international 
community. Her delegation strongly encouraged all other Members to join.  
1.20.  The representative of Switzerland believed that , thanks to the l aunch of the declaration, there 
was a momentum. Her delegation proposed to deepen this theme within the CTE, but also within 
the TESSD, which had proposed in its own declaration to discuss the environmental effects and 
commercial impacts of the subsidies c oncerned.  
1.21.  The representative of Costa Rica  congratulate d New Zealand for leading the way for a 
successful delivery of a Ministerial Declaration on FFSR. Costa Rica was proud to be a co-sponsor of 
this initiative and her delegation advocate d for the urgent need of FFSR, which properly reflect ed 
what ha d been globally acknowledged and reflected in SDG 12.c.  While her delegation recognize d 
that this was an issue that still require d more discussion among the wider Membership, her 
delegation cons idered that discussions on this topic under the TESSD work program me could be 
useful to make a significant contribution towards initiating discussions and understanding on this 
relevant issue at WTO.  Her delegation was ready to support the outreach efforts  and encourage d 
Members that ha d not co-sponsored this initiative yet to do so.  
1.22.  The representative of the United States  thanked New Zealand for its presentation on the joint 
Ministerial Declaration at MC12.  His delegation recognize d the importance of phasing out inefficient 
FFS that encourage d wasteful consumption, especially in moving towards a low -carbon future with 
the goal of achieving net -zero emissions by 2050 and meeting the goals of the Paris Agreement . He 
also note d the pote ntial political difficulties of reaching a consensus on this issue.  The representative 
of the United States encourage d the co-sponsors to consider work that was already taking place in 
the Asia-Pacific Economic Coopera tion (APEC) and the Organisation for Economic Co -operation and 
Development  (OECD) and to consider how the WTO could  contribute to a meaningful discussion on 
FFSR. For example, it would be beneficial to better understand what constitute d a fossil fuel subsidy 
that was "wasteful " and contribute d to "inefficient consumption ". 
1.23.  The representative of Norway  appreciated the work carried out by New Zealand on the fossil 
fuel initiative. In particular, her delegation welcome d the many new co-sponsors and w ished to see 
more Members joining in time.  In her delegation's point of view, t he WTO would be the right place 
to work on these issues  and she believed that there was momentum on this now.  
1.24.  The representative of t he Kingdom of Saudi Arabia  thank ed New Zealand for continuing to 
share update s on its program me of phasing out FFS. While her delegation encourage d sharing 
information, the Kingdom reiterate d its position stated during previous meetings, namely , that  this 
issue was dealt with under a different forum whereby a voluntary peer review of inefficient FFS that 
encourage d wasteful consumption  was conducted  among some G20  members in accordance with 
their national circumstances, priorities and needs. In her delegation's poin t of view, issues such as 
this one should not be addressed under the WTO.  WT/CTE/M/74  
 
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  1.25.  The representative of Venezuela  noted that the New Zealand initiative, accompanied by some 
countries, only concerned  the member countries of the G20 and was alien to the work of the  WTO. 
The delegation reiterated its previous position and expressed its concern.  
1.3  Europ ean Union (EU) Green Deal  
1.26.  The representative of the European Union  provided an update on trade -relevant aspects of 
the European Green Deal.3 It recalled that the "Fit f or 55" package set out how the E uropean Union 
intend ed to achieve climate neutrality by 2050 and a 55% net reduction in greenhouse gas emissions 
by 2030. Before focusing on one of the proposals, it indicated that, in November 2021, the 
European Union had proposed new rules to facilitate intra -EU waste shipmen ts to promote circular 
economy and tackle the export of illegal waste and waste challenges to third countries, as well as a 
new soil strategy to have all European soils restored, resilient, and adequately protected by 2050. 
In December 2021, additional pro posals had been put forward, including: (i) a revision of the Energy 
Performance of Buildings Directive in order to improve the energy efficiency of the EU's building 
stock; (ii) an update to the EU gas market framework to enable a market for renewable gas es, and 
one for renewable and low -carbon hydrogen; (iii) guidance on the social aspects of the green 
transition; and (iv) a green mobility package that aim ed to build a sustainable and effective EU -wide 
network of rail, inland waterways, short sea shipping  routes and roads. The EU co -legislators were 
now deliberating on the proposed measures.  
1.27.  During 2022, the E uropean Union would continue to take measures to reach its climate 
objectives, including an update of the EU rules on fluorinated greenhouse gases; a framework for 
harmoni zed measurement of transport and logistics emissions; a review of the CO 2 emissions 
standards for heavy -duty vehicles; a regulatory framework for the certification of carbon removals; 
further implementation of its circular economy ac tion plan; and a package on sustainable products 
and consumption.  
1.28.  The representative of the European Union elaborated on one of the proposals in the 
"Fit for 55" package – the European Commission proposal for new rules to curb EU -driven 
deforestation . It was noted that this proposal w ould be discussed in the European Parliament and 
the European Council, result ing in a final proposal . In terms of objectives, the proposal sought, 
among others, to minimize the risk that products coming from supply chains asso ciated with 
deforestation or forest degradation were placed on the EU market and to increase the EU demand 
for legal and deforestation -free commodities and products . 
1.29.  With respect to the process leading to the proposal, the European Union noted that the 
European  Commission had conducted " regulat ory fitness checks" concerning the EU Timber 
Regulation and the Forest Law Enforcement, Governance and Trade (FLEGT) regulation. The "fitness 
check" of the EU Timber Regulation had identified certain improvements , especially raising 
awareness and transparency in supply chains. The challenges in implementation that should be 
addressed in the new proposal include d the operator's ability to validate the information from the 
supply chains. In turn, the "fitness check" o f the FLEGT regulation – and in particular the so -called 
Voluntary Partnership Agreements – had revealed that, while these processes were positive in terms 
of multi -stakeholder dialogues, they had also proved to be long, complex, and resource intensive. 
Thus, after more than 15 years, only one country out of the fifteen that had engaged with the 
European Union  in these processes had an operating licensing system in place, which covered only 
3% of the relevant trade. Moreover, i n preparing this proposal, t he European Commission had also 
carried out an impact assessment  that encompassed the lessons learned from the "regulatory fitness 
checks", as well as the broader scientific analysis . The impact assessment had also included a 
number of multi -stakeholder meet ings with more than 250 participants, partner countries and 
international organizations, as well as targeted interviews in the EU and partner countries. He 
indicated that, after thorough analysis of approximately 20 policy options, the selected option was 
a proposal combining mandatory due diligence and country benchmarking.  
1.30.  The representative of the European Union also addressed the scope of the proposal. In this 
regard, he noted that the commodities covered were palm oil, soy, wood, cattle, cocoa, and coffee 
and some derived products (e.g. leather, chocolate, furniture). Thi s selection was the result of a 
thorough scientific analysis and a cost -benefit analysis. The scope was "progressive" in that the 
proposal initially cover ed the mentioned selected commodities and derived products, but this would 
 
3 See document RD/CTE/206 . WT/CTE/M/74  
 
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  be updated regularly based on the latest scientific data. It was also emphasized that the regulation 
would apply to both domestically produced and imported commodities and derived products. In 
terms of temporal scope, he stated that the proposed cut -off date was 31 December 2020. Th us, 
commodities w ould not be allowed to enter the European Union if produced on land subject to 
deforestation after that cut -off date . The selection of this cut -off date reflected the commitments, 
not only within the European Union  and its member States bu t also in partner countries.  
1.31.  Turning to the main elements of the proposal, the representative of the European Union stated 
that the proposal  would create mandatory due diligence rules for all operators that place d the 
commodities and products on the EU ma rket or export ed them from the European Union . Moreover, 
only products that were both deforestation -free and legal would be allowed on or exported from the 
EU market and they would need to be covered by the so -called "due diligence statement". It was 
noted that the information systems that would be built would be crucial for the due di ligence 
statements and related information required to facilitate enforcement by EU member States. Another 
main element of the proposal would be a benchmarking system to assign risk to countries or parts 
thereof according to the level of risk of deforestat ion (low, standard , or high) . This system would be 
based on regular information exchanges with partner countries in order to allow for close cooperation 
between the European Union and partner countries and to achieve the objectives together. He 
stressed th at this proposal should be understood together with all the other activities undertaken by 
the European Union in the broader context of deforestation, which involve d working with partner 
countries to ensure that global action be undertaken both by producer s and consumers.  
1.32.  The main obligations in the proposal would be applicable to operators and non -small and 
medium -sized enterprise (SME)  traders. In the case of low -risk countries , the due diligence 
requirements were simplified. At  the same time, if there was a particular doubt or risk or information 
related to lower  risk countries pointing to any kind of problem in the supply chain, the operators 
would need to perform the due diligence process as for standard risk countries. It was emphasized 
that the propo sal should not be seen as a ban on products from high -risk countries. Indeed, 
operators that source d from high -risk countries, if they had clean supply chains, would  have no 
additional costs or problems in terms of placing the products and commodities on t he EU market. It 
was noted that the proposal set out certain inspections for EU member States' authorities to perform, 
as well as certain penalties.  
1.33.  The representative of the European Union emphasized the importance for this proposal and 
the broader EU wor k on deforestation in cooperation with partner countries. The 
European  Commission would step up cooperation to ensure that EU partners were able to reap  the 
benefits of the EU on deforestation. This cooperation could be, for example, through forest 
partnerships, as well as co -dialogue and other tools being developed together with partner countries. 
It was noted that the European Commission could also inte nsify engagement with consumer 
countries such as China and the United States as well as other partners (e.g. Australia, Canada, 
Japan, and Korea) in the fight against illegal logging and also work together in international fora to 
move this agenda forward in a multilateral context.  
1.34.  The representative of the European Union reiterated that t he proposed regulation was based 
on the following principles: transparency, accountability , and sound scientific and methodological 
basis; consistency with agreed internat ional commitments, notably halting deforestation at the levels 
of December 2020 in line with SDG 15; and non -discrimination, as it treat ed equally domestic and 
imported commodities and products and covered both imports and exports. He also reiterated that 
the present proposal was part of a broader set of policies to reduce deforestation, which include d 
developing partnerships with producer and consumer countries; strengthening international 
cooperation including in multilateral fora; redirecting financial s upport to the most sustainable land 
use practices; and supporting research innovation and access to information. It was highlighted that 
partnerships and cooperation were important to promote the transition to sustainable agricultural 
production, sustainab le forest management , and the development of transparent and sustainable 
supply chains.  
1.35.  The representative of the European Union concluded by reiterating that climate change and 
environmental protection were global challenges that require d global action an d cooperation and 
that the WTO played a key role in this respect. For this reason, the European Union had been 
supporting developing countries in their efforts towards these objectives. In the field of forestry, the 
European Union had proposed engaging in forest partnerships, which were followed by political 
commitments between the EU and partner countries and were accompanied by the EU's development WT/CTE/M/74  
 
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  cooperation to contribute to the protection, restoration, and sustainable management and use of 
forests. A w ide range of activities c ould be undertaken such as improving governance and 
institutions ; promoting environmentally sustainable forest -based value chains and the capacity of 
the private sector ; supporting the sustainable management and conservation of for ests to contribute 
to climate and biodiversity objectives ; and accompanying countries to comply with the requirements 
of the EU's proposed regulations on deforestation.  
1.36.  The representative of Colombia  expressed its interest in working with the European Unio n in 
developing an equitable EU Green Deal and in helping the international community become climate 
neutral. At the same time, Colombia considered it useful to put forward some preliminary remarks. 
First, the EU proposal relate d to sustainable agriculture  and sustainable agriculture should be 
inclusive in light of SDG 17. A holistic approach to climate change was needed and , thus, it was 
necessary to analyze other situations that c ould be more harmful for the environment such as the 
case of agricultural en vironmental subsidies. Colombia queried the rationale for not including th ese 
types of measures in the EU Green Deal and asked the European Union when it would notify 
measures included in the legislative package that were trade-related  and covered by several covered 
agreements, such as the General Agreement on Tariffs and Trade  (GATT  1994), the S anitary and 
Phytosanitary (SP S) Agreement and the T echnical Barriers to Trade (T BT) Agreement. Second, 
Colombia expressed concern that this pol icy could have a discriminatory aspect as it may result in 
extraterritorial protection against deforestation of primary forests, which were mainly outside of the 
European  Union. In terms of inclusiveness, the measure should consider the three areas of 
sustainability: economic, social, and environmental. Thus,  the measure should consider social 
dynamics, geology, ecosystems, and territory, which may render developing countries more 
vulnerable to non -legal situations that make deforestation control burdensome , costly, and 
complicated. Colombia invited the European Union to ensure that deforestation standards met their 
objectives, d id not constitute disguised trade barriers, and contribute d to trade in the covered 
products.  
1.37.  The representative of Argentina  indicated that some of the proposals in the EU Green Deal 
had raised concern among the Membership and invited further information on the proposed 
measures. Argentina underscored the importance of multilateral dialogue to ensure adequate 
transparency of environm ental measures. It was indicated that the instruments adopted to fight 
climate change should comply with international obligations and should not constitute an 
unnecessary or disguised barrier to trade. The principle of common but differentiated responsibi lities 
should also be taken into account.  
1.38.  The representative of Costa Rica  thanked the European Union for its presentation on the 
EU Green Deal and underscored that any environmental policies implemented by Members with 
direct impacts or effects on trade s hould be in compliance with WTO rules. Continuous updates in 
the Committee on the development and status of current and future environmental policies would 
be welcome.  
1.39.  The representative of Norway  appreciated the detailed information and the transparent 
approach from the European Union and indicated that the new proposal on commodities associated 
with deforestation was an important step forward  to ensure sustainable products and key value 
chains in Europe and elsewhere. Norway stated that it was considering  the proposal within the 
framework of its cooperation with the European Union through the Agreement on the European 
Economic Area.  
1.40.  The representative of Thailand  recognized the importance and urgency of tackling climate 
change  and underscored the importance of respecting international rules and principles, including 
those under the WTO and the United Nations Framework Convention on Climate Change  (UNFCCC ). 
Acknowledging that this measure was still following its internal legislat ive process, Thailand 
highlighted the importance of ensuring that the European Union's Carbon Border Adjustment 
Mechanism (CBAM) was in conformity with WTO rules. On the issue of the crediting of foreign climate 
policies, Thailand noted that the proposal m ay ultimately exclude consideration of policies other than 
explicit carbon pricing. This would seem difficult to align with the Paris Agreement and may constitute 
arbitrary or unjustifiable discrimination between countries where the same conditions prevail ed. 
Thailand invited the European Union to engage in cooperation and dialogue and to ensure that its 
climate -related efforts were in compliance with all relevant international rules and principles.  WT/CTE/M/74  
 
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  1.41.  The representative of Canada  considered that the European Union's presentation on 
deforestation and forest degradation -free supply chain s, along with previous presentations on the 
EU Green Deal, contributed to enhanced transparency by providing new and more in -depth 
information to WTO Members . Canada underscored the importance that the European Green Deal 
be implemented in a manner that complement ed and reinforce d the benefits of open and rules -based 
international trade, while ensuring that trade and climate policies were mutually supportive.  
1.42.  The representative of  Brazil  began by referring to the new rules on pesticides and reiterating 
its concern regarding the publication by the European Union of more than 2 ,600 emergency 
authorizations by its member States of substances under review since 2017. Many of the reques ts 
presented by EU producers used the same arguments presented by delegations from developing 
countries on the SPS and TBT Committees. There were also some requests that had simply no 
justification at all for their "emergency use" and yet had been approved . Brazil stressed that the 
new rules on pesticides should be applied in a transparent and non -discriminatory manner and be 
rooted in scientific evidence. Regarding the regulations on transparency in supply chains, Brazil 
welcomed direct dialogue between au thorities to ensure that the measure would not have a 
discriminatory character and would be compatible with WTO rules. Brazil added that countries that 
industrialized first should bear a larger brunt of the costs of emission reduction. Moreover, 
EU standar ds reflecting its temperate climate should not simply be imposed on tropical and 
developing countries. Noting the potential problems for the multilateral trading system if each 
Member were to choose its own environmental criteria, Brazil urged the European  Union to take into 
account comments made by trading partners with respect to the proposed measures under the 
EU Green Deal.  
1.43.  The representative of India stated that the measures under the EU Green Deal were an 
attempt to internationalize domestic regulatio ns in the name of the environment and that they  
should follow the principle of common but differentiated responsibilities and respective capabilities. 
India indicated that it would continue to examine the validity of these proposals under WTO rules.  
1.44.  The representative of Paraguay  thanked the European Union for the update on the EU Green 
Deal and reiterated the importance of taking into account the three areas of sustainable 
development  – economic, social, and environmental – and ensuring that the prop osed measures 
compl ied with international rules and principles, including those at the WTO. The transition to 
sustainable production should be gradual and should take account of each country's specific 
economic, social , and environmental circumstances. Par aguay noted that countries in Latin America 
and the Caribbean, in addition to being important food suppliers worldwide, were also suppliers of 
important ecosystemic services. In this context, Paraguay agreed with Colombia's query regarding 
the focus of the  proposed measure on primary forests and the selected commodities and its possible 
discriminatory impact on developing countries.  
1.45.  The representative of Switzerland  indicated that a revision of the Environmental Protection 
Act that came into force in Switze rland had made it possible to prohibit illegal timber. In turn, the 
Swiss Timber Trade Ordinance, which came into force on 1 January  2022, made it possible to prohibit 
the making available of other raw materials and products if the cultivation, extraction , or production 
significantly impacted the environment or significantly jeopardized the sustainable use of natural 
resources. Switzerland expressed its support for ensuring sustainability in addition to legality.  
1.46.  The representative of Guatemala  shared some of the concerns expressed by other Members, 
highlighting, in particular, the importance that trade measures compl ied with WTO rules, including 
those on non -discrimination, and the need to take into account the effect on developing countries. 
Guatemala pres ented a series of queries concerning the selection of the covered commodities in the 
regulation; the criteria used to classify these commodities as causing deforestation; the possibility 
of updating the list of commodities covered by the measure in the fut ure; the definition of "supply 
chain associated with forest degradation"; the definition of SME under the measure; and the criteria 
that would be used for country benchmarking. Guatemala welcomed responses to these queries and 
looked forward to continued d iscussion of these proposals.  
1.47.  The representative of  the Kingdom of Saudi  Arabia  thanked the European Union for the update 
on trade -relevant aspects of the EU Green Deal and reiterated its concerns on the proposed CBAM. 
This proposal had been addressed under the agenda of the Committee on Market   Access, where 
Members discussed and would continue to discuss these matters. Saudi Arabia a lso expressed WT/CTE/M/74  
 
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  support for the concerns raised by a number of Members regarding the effects of the proposed 
measure and the importance of ensuring consistency with WTO rules.  
1.48.  The representative of the European Union  responded to the questions raised by dele gations. 
On the question regarding the selection of the covered commodities, t he European Union pointed to 
the results of the impact assessment, which were published online and include d details on the 
methodology used and the various steps in the process. The European Union also noted that it did 
not have any plans to increase the number of commodities and products, but this would be updated 
regularly based on scientific data . It was also clarified that the proposed regulation would apply to 
SMEs in general , so all operators and industries would be covered. However, there was a difference 
between operators and traders. Operators were those that place d the products first on the market, 
and they had to perform the whole due diligence requirements. In turn, in the context of traders, 
only big traders that were not classified as SMEs would have to apply the same measures. At the 
same time, traders that include d SMEs were covered by other articles in the regulations.  
1.49.  With respect to country benchmarking, the Europ ean Union noted that further work in this 
area would take place in the future and that the criteria w ould be defined more precisely in the 
implementing act. At the same time, the proposed regulation already set out the key issue of the 
rate of deforestatio n and recognized the actual work and policies in partner countries. The 
European  Union reiterated that it was willing to cooperate closely with all partner countries that were 
interested in working on these matters. The main objective of this regulation was for the EU to be 
able to reward the countries and operators that had already worked significantly in this area and to 
help everybody else move in the right direction. The European Union highlighted that the proposed 
measure would not only apply to tropic al countries; it would apply to all operators and all countries 
including EU member States.  
1.50.  The European Union concluded by reiterating the importance of this Committee in providing 
transparency regarding environmental measures. This work ha d been complemented by multiple 
meetings with third countries and outreach efforts. It was also reiterated that WTO compatibility of 
the measure s under the EU Green Deal, including with respect to non -discrimination, was being 
closely examined. With respect  to the comment related to agricultural subsidies, it was indicated 
that the EU Common Agricultural Policy (CAP) govern ed these matters and that the CAP had taken 
on board certain objectives of the farm -to-fork policy. A new element of the CAP reform would  be 
the development of national strategic plans by EU member States, which would be assessed by the 
European Commission in terms of their contribution to, and consistency with, EU legislation, 
including in relation to climate and the environment. Finally, the European Union thank ed Members 
for their engagement and not ed that the proposal was still following the legislative process and would 
be subsequently taken up by the European Council and the European Parliament.  
1.4  Other  
1.4.1   United Kingdom's update on activit ies related to making supply chains more 
sustainable  
1.51.  The representative of the United Kingdom  updated the Committee on activities related to 
making supply chains more sustainable. The U nited Kingdom  had previously updated the CTE on the 
Forest, Agriculture  and Commodity Trade (FACT) Dialogue, which was part of the UK 's COP26 
Presidency. The Dialogue was co -chaired by the U nited Kingdom  and Indonesia and had brought 
together 30 major consumer and producer countries of internationally traded agricultural 
comm odities to explore ways of shifting to global sustainable supply chains. The U nited Kingdom  
had circulated a non -paper, providing the background, highlighting the successes , and setting out 
the next steps of the FACT Dialogue.4  
1.52.  Over the past year , representatives from FACT countries had discussed ways in which they 
could collaborate to develop markets for sustainable trade of agricultural commodities. Participants 
had developed a shared roadmap of indicative actions, including actions on improving traceability, 
scaling up agricultural research and development and smallholder support schemes , and building an 
understanding and market recognition of sustainable production. Twenty -eight countries had also 
 
4 See Document RD/CTE/203 . WT/CTE/M/74  
 
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  agreed on a joint statement on principles for co llaboration with the aim of promoting sustainable 
development and trade while protecting forests and other critical ecosystems.  
1.53.  This roadmap of actions set an ambitious path to ultimately support the transition to a 
coherent international system for sustainable agricultural  commodity production and trade, in line 
with the ambitions set out in the Glasgow Leaders ' Declaration that 141 Heads of State had signed 
up to.5 Trade in sustainably produced agricultural commodities would bring many benefits – it would 
help reduce land degradation and deforestation and protect important terrestrial ecosystems. It 
would also help reduce greenhouse gas emissions , increase resilience to climate impacts , and 
reverse biodiversity loss.  
1.54.  FACT participants had collectiv ely developed the roadmap and were focusing on the next 
phase of delivering and implementing the actions. Sustainable trade was a key part of these 
conversations and must be a part of the solution. During FACT discussions, several countries had 
stated that  complementarity of producer and consumer trade and market measures was crucial, and 
that it was vital countries recogni zed and support ed efforts to make the production and consumption 
of agricultural commodities more sustainable. It was key that countries  worked collectively to expand 
markets for sustainable commodities, increasing their demand and supporting access for 
smallholders, whilst decreasing the costs for sustainably produced commodities.   
1.55.  The WTO could play a key role to help move forward along this path and it was vital to ensure 
that FACT aligned with and built on relevant work done in the WTO, including in the CTE and the 
TESSD. The FACT co-chairs would be reconvening FACT officials in March to finali ze the work  plan 
for 2022. The U nited Kingdom  encouraged FACT countries ' trade ministries and officials to further 
engage with their environmental and agricultural colleagues who would be participating and to share 
views on the work  plan. FACT co-chairs and co -facilitators also welcomed further exploration of how 
to align the FACT and WTO processes. The U nited Kingdom  encouraged the wider WTO Membership 
to support the FACT Dialogue 's outcomes and aims and to consider how best to help deliver the 
ambitions set out in the Glasgow Leaders ' Declaration.  
1.56.  The United Kingdom  also updated the CTE on the webinar titled "Implementing Due Diligence 
on Forest Risk Commodities – Recent Developments in the United Kingdom ". The webinar was 
opened by a keynote address from Lord Goldsmith, UK Minister for the Environment, who had made 
a compelling case regarding the urgency required to transition to sustainable supply chains.   
1.57.  The webinar itself  had provided information on the United Kingdom 's proposed 
implementation of due diligence legislation, which was being introduced through the United 
Kingdom 's Environment Act to help tackle illegal deforestation in UK supply chains. The due diligence 
provisions would make it illegal for larger businesses operating in the U nited Kingdom  to use key 
forest risk commodities produced on land illegally occupied or used.  
1.58.  On 3 December 2021, the United Kingdom 's Department for Environment, Food and Rural 
Affairs had launched its consultation on implementing due diligence requirements in the Env ironment 
Act. The consultation was open to all and sought views on how the U nited Kingdom  could best 
implement these regulations through secondary legislation and guidance. The panellists had 
provided an overview of the consultation , including which forest  risk commodities would be brought 
under initial regulations, which businesses would be in scope of the regulations , and how the 
enforcement authority would monitor and ensure compliance with regulations. The U nited Kingdom  
encouraged all CTE Members to pa rticipate in the consultation process , which was open until 
11 March 2022.  
1.59.  The representative of Canada  commended the UK 's effort to promote the sustainability of 
supply chains, including through its G7 Presidency. She noted a growing interest at the TESS D and 
at the CTE to discuss supply chain sustainability. This was a positive development towards a more 
comprehensive understanding of the nexus of trade and environment. To address climate change 
through trade, it was needed to examine how goods were prod uced and not to focus solely on 
end-use. The linkages between supply chain sustainability and circularity had to also be explored. 
 
5 The Glasgow Leaders ' Declaration includes a commitment to strengthening shared efforts to: "facilitate 
trade and development policies, internationally and domestically, that promote sustainable development, and 
sustainable commodity production and consumption, that work to countries ' mutual benefit, and that do not 
drive deforestation and land degradation ". WT/CTE/M/74  
 
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  Her delegation encouraged WTO Members  to share best practices that could help improve the 
reliability and sustainability of s upply chains.  
1.60.  The representative of Norway  said that to support the transition, through the Glasgow 
Leaders ' Declaration on Forests and Land Use, Norway and 11 other donors had committed to 
support forest protection with USD 12 billion until 2025. Since 2008, Norway had partnered with 
tropical forest countries to support their ambitions to reduce deforestation. Deforestation -free supply 
chains w ere possible with the use of tools for transparency and forest monitoring , which could detect 
even small -scale deforestation .  
1.61.  Producer countries needed more incentives to reach their climate and nature goals. 
Deforestation -free trade had to be profitable,  not at a loss, and th ere must be a level playing field 
for sustainable operators and traders.  Norway was a part of the Amsterdam Declarations Partnership 
where nine European countries had committed to eliminate deforestation from agricultural supply 
chain s. Norway also took part in the FACT Dialogue hosted by the United Kingdom . Her delegation 
welcomed more cooperation between FACT and the trade community.   
1.62.  The representative of Japan  noted the importance of due diligence measures for building 
legitimate and sustainable supply chain s. On the other hand, especially for forests, it was difficult to 
set uniform regulations or other principles. This was because each country had different 
circumstances, such as different environmental conditions and different industries based on 
geographical location. It was necessary to seek and push ahead with a market -oriented approach 
that considered the importance of sustainable forest management for ex porting countries. In 
addition, cooperation needed to be promoted efficiently , while avoiding duplication of the functions 
of existing international organizations and treaties. For example, the International Tropical Timber 
Organization (ITTO) was working on building a sustainable supply chain for timber and timber 
products as one of its priorities. Japan noted the effectiveness of cooperating with these institutions 
and availing of the services they provided.  
2  TECHNICAL ASSISTANCE AND CAPACITY BUILDING, PAR AGRAPH  33 OF THE DOHA 
MINISTERIAL DECLARATION   
2.1  Update on seminars and webinars  
2.1.  The Chairperson  informed the Committee that, under the request and guidance of the  CTE in 
Special Session's  Chairperson  Ambassador Samba, the WTO Trade and Environment Division had 
organized on 19 November an information session for the LDC Group. The information session had 
provided delegates from the LDC Group with an opportunity to take stock of the role of the CTE and 
review Members ' initiatives on trade and environment. He encourage d the Secretariat to continue 
to organize similar events on the nexus between trade and the environment in the future to address 
capacity building and technical assistance needs in developing countries and  LDCs.  
3  MULTILATERAL ENVIRONMENTAL AGREEMENTS (MEAS), ITEMS 1 AND 5 OF THE 
CTE WORK PROGRAM ME 
3.1  United Nations Framework Convention on Climate Change (UNFCCC)  
3.1.1   United Kingdom's update on the 26th session of the Conference of the Parties 
(COP26) to the UNFCCC   
3.1.  The representative of the United Kingdom  briefed delegations  on the outcomes of the 
26th Conference of the Parties to the U NFCCC  (COP26), hosted by the U nited Kingdom  in partnership 
with Italy in Glasgow in November 2021. COP26 had concluded with all 197 Parties agreeing to the 
Glasgow Climate Pact to keep the goal of limiting temperature rise to 1.5 °C within reach. The Pact 
would speed up the pace of climate action this decade, with all countries agreeing to revisit and 
strengthen their emissions targets in 2022 as necessary to align with the temperature goal, as well 
as developed countries agreeing to  double support for action on adapting to climate change by 2025.  
3.2.  For a historic first time, the COP decision had included a commitment from countries to phase 
down the use of coal and phase out inefficient FFS. The Paris Rulebook had finally been complet ed 
after six years. This included agreement on a transparency process that would enable accountability WT/CTE/M/74  
 
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  and confidence as countries deliver ed on their targets, agreement on accounting standards, and a 
new mechanism for carbon markets. There were net -zero co mmitments for over 90% of the world 's 
economy – up from 30% two years ago.   
3.3.  With the postponement of the Twelfth WTO Ministerial Conference (MC12) in November 2021, 
it was even more crucial to keep up the momentum of COP26 and to place climate and environm ental 
issues at the heart of the WTO 's agenda. It was needed to ensure that the multilateral trading system 
played a significant role in addressing the existential and interdependent crises of climate change 
and biodiversity loss. Members could progress th is agenda at the WTO, for example, by engaging in 
efforts to explore how trade in environmental goods and services could strengthen decarboni zation 
efforts, and to clarify the interaction between domestic climate mitigation measures and WTO rules.  
3.4.  The U nited Kingdom  would continue to focus on its global ambition this year and beyond to 
ensure promises were kept and delivered across the three pillars of the Paris Agreement: mitigation, 
adaptation, and finance.  On mitigation,  the U nited Kingdom  would work with all Parties to deliver on 
the commitment to revisit and, if necessary, strengthen 2030 targets to go further and faster to 
close the gap to a 1.5°C pathway. This would involve collaborating with countries to explore further 
sectoral action  and public and private opportunities for investing in their low -carbon resilient 
transition. The U nited Kingdom  would work closely with the UNFCCC and other international 
organi zations in 2022 to progress this work, encouraging higher ambition nationally determined 
contribution s (NDCs ), further commitments on net -zero, and on coal, cars, cash , and trees.  
3.5.  On adaptation, the U nited Kingdom  would deliver four mandated workshops in 2022 under the 
Glasgow –Sharm el -Sheikh Work Programme on the Global Goal on Adaptation, which was launched 
at COP26. The U nited Kingdom  would partner with countries to make good on the commitment from 
developed cou ntries to at least double their collective provision of climate finance for adaptation to 
developing countries by 2025. This would increase the availability, efficiency, and accessibility of 
adaptation finance for climate vulnerable countries. The U nited Kingdom  would also ensure progress 
continued to be made on Loss and Damage through the new Glasgow Dialogue on arrangements for 
funding relevant activities, and make sure the Santiago Network on Loss and Damage was running.  
3.6.  On finance,  the U nited Kingdom  could provide confidence that the  USD 100 billion finance goal 
would be met by developed countries and multilateral development banks by 2023 at the latest, 
with USD 500 billion being delivered over the period 2021 -2025. The U nited Kingdom  would reinforce 
the progress made in Glasgow in aligning private finance flows with the Paris Agreement globally 
and would work with partners to leverage the trillions of private finance needed to fund the transition 
in all countries including the major emitters.  
3.7.  The U nited Kingdom  looked forward to working closely with Egypt and the United Arab Emirates  
(UAE), as incoming COP27 and COP28 Presidents, to ensure commitments made at COP26 were 
built upon and delivered.  
3.8.  The representative of Egypt  commended the United Kingdom for the excellent organization of 
COP26. Egypt needed to build on the success and the outcomes reached in Glasgow and ensure 
comparable results at COP27 by working with the Membership. Addressing the issue of 
environmental and  economic sustainability had become a top priority for sustainable development. 
Yet, the relevant discussions needed to be reflective of countries' economic and environmental 
realities and provide the policy options and the capacity required for them to pr oceed on that front. 
Egypt needed to engage constructively in the upcoming discussions. It was important to aim at 
building the case for "Sustainable Development for all".  
3.9.  The representative of Canada  commended the UK COP26 Presidency for delivering a clim ate 
conference that was historic in its breadth, scope, and size. Glasgow had demonstrated how climate 
change impacted all economic sectors and all segments of society. Canada looked forward to working 
with the UK COP Presidency throughout 2022 to maintain  momentum from Glasgow to COP27 in 
Egypt.  At COP26, Prime Minister Trudeau had demonstrated Canada's whole -of-government 
approach to climate action. In support of the UK Presidency, Canada was pleased to co -lead with 
Germany, on behalf of donor countries, the Climate Finance Delivery Plan on the USD  100 billion 
goal to help build trust among Parties at COP26. In the closing hours of COP26, much attention had 
been focused on the political cover decision known as the Glasgow Climate Pact, and its text on a 
"phase out" of unabated coal power. Canada noted that the Pact had marked the first time that the WT/CTE/M/74  
 
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  197 Parties to the UNFCCC had agreed – by consensus – not only to reduce the reliance on coal 
power but also to implement the G20 commitment to phase out ineffi cient fossil fuel subsidies.  
3.10.  This accomplishment had set a backstop and represented a significant step change in global 
discussions agreed by consensus. Canada was also pleased that the Glasgow Climate Pact included 
a commitment by Parties to revisit and strengthen their climate targets to align with the 
Paris Agreement temperature goal by 2022. Canada and numerous G7 and G20 major economies 
had already come forward over the past year, but a number of large emitters had not yet done so. 
Canada urged action  as, according to the latest climate science, global emissions must be drastically 
cut within the next 10 years to keep global warming to within 1.5 °C. 
3.1.2   UNFCCC's update on COP26  
3.11.  The representative of the UNFCCC  briefed delegations on COP26. The new phase of  the 
climate change process looked at the implementation of the Paris Agreement and its various 
elements. There were several main themes that had produced the very important results in Glasgow. 
The first was about closing the Paris Rulebook : with the decis ions on Article 6, transparency , and a 
number of other issues, the Conference had marked completion of the Paris Agreement Work 
Programme. The whole Paris  Agreement could start operating as it was designed and this was a 
major success of Glasgow.  
3.12.  The second big area was ramping up ambition and action. On finance, the Conference had 
recognized both the gap in the fulfillment of the USD  100 billion goal and the increased pledges to 
address the gap in 2022 -2023. Further progress towards the goal would  be considered at COP27 in 
November 2022 and onwards. T he establishment of a process for a new post -25 climate finance goal 
would start already in March 2022 with a first meeting relating to this.  
3.13.  On mitigation, the approval of a new work plan was expected  for COP27, which would be a 
tool for scaling up mitigation ambition. It was important to have an annual synthesis report on NDCs 
as well as an updated long -term strategy submitted by countries. Furthermore, reference to coal 
phase down and fossil fuel sub sidies phase out was part of this overall big effort and outcome on 
mitigation in Glasgow.  
3.14.  On adapt ation, there had also been a call for doubling funding. Record pledges o f over 
USD 350 million had been made to the Adaptation Fund , which was an important t ool in deliver ing 
support in developing countries. A  two-year Glasgow –Sharm el -Sheikh work programme on the 
global goal on adaptation had been established. On Loss and Damage associated with the adverse 
effects of climate change, it was acknowledged that climate change had already caused and would 
increasingly cause such Loss and Damage .  
3.15.  There were a large number of outcomes beyond negotiations coming from non -Parties , 
stakeho lders, business, regions,  and institutions, such as the Race to Resilience and the work on 
forests and methane.  COP26 was a positive milestone in the international climate change process 
and a successful UN conference , which had demonstrated action on clim ate challenge based on 
scientific findings and advice. Multilateralism, within the UN context, had been shown to be the right 
approach to global issues and could deliver important results.  
3.1.3   New Zealand's update on negotiations towards the Agreement on Clim ate Change, 
Trade and Sustainability (ACCTS)  
3.16.  On behalf of Costa Rica, Fiji, Iceland, New  Zealand, Norway , and Switzerland that had been 
negotiating the Agreement on Climate Change, Trade and Sustainability (ACCTS), the representative 
of New Zealand  updated  the Committee on the latest development s6. He noted that the six Parties 
were continuing to negotiate the ACCTS, encompassing four key pillars at the nexus of trade, 
environment , and sustainable development policy. He noted that t he ACCTS pillars were: the 
liberali zation of environmental goods, new and binding commitments for environmental services, 
disciplines to eliminate harmful fossil fuel subsidies, and best practice guidelines to inform the 
development and implementation of v oluntary eco -labelling programmes and mechanisms.  
Following the meeting of ACCTS Trade Ministers in October, on which his delegation had provided 
 
6 See document WT/CTE/GEN/27 . WT/CTE/M/74  
 
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  an update to the CTE last year, a second Ministerial meeting had been  held among the ACCTS 
Climate Ministers o n 11 November  2021.  
3.17.  He noted that t he Climate Ministers had hosted a side -event in the margins of the UN COP26 
to highlight the linkages between trade policy and climate action. During this session, Costa Rica 's 
Minister Andrés Valenciano had noted that "[decarboni zation] is an opportunity to generate jobs, to 
access technology, and to continue in the way to implement our work – the decarboni zation strategy 
[…] is our development strategy. " Fiji's Attorney General, Aiyaz Sayed -Khaiyum, also had 
emphasi zed that , "while global trade is a source of emissions, it is also a fundamental part of the 
solution as it has the potential to enhance both mitigation and adaptation measures to climate 
change. " Iceland 's Minister Guðmundur Ingi Guðbrandsson had noted that "Trade rules will play a 
significant role in mitigating climate change and environmental degradation globally simply by 
favouring green and clean businesses all over the world. " The representative from Switzerland had 
added that , "international trade policy can make a very important contribution to climate and 
environmental challenges and the sustainable development of all countries. " New Zealand's Minister 
of Climate Change James Shaw had expressed his hope that the ACCTS will be "the first chil d of the 
next generation of trade agreements. " 
3.18.  All ACCTS Climate Ministers had issued a statement reaffirming their strong support for the 
ACCTS negotiations. They had encouraged negotiators to conclude as soon as possible, while 
maintaining ambition in the negotiations so as to maximi ze the potential climate impact in support 
of the Paris Agreement 's aims. The ACCTS participants had welcomed the inclusion of FFSR in the 
COP26 Glasgow Climate  Pact document, as it further reinforce d the linkage s between trade and 
climate action.  The seventh round of negotiations concluded in December, with delegations holding 
multiple sessions across the four pillars and continuing to make steady process in the negotiations. 
The 8 th round would  be held in March 2022.  
3.19.  The representative of New Zealand further noted that ACCTS participants continue d to 
carefully evaluate the specific needs of developing Members to ensure that the ACCTS was fit for 
purpose. The group would continue to elaborate on specific and targeted flexibilities  that may need 
to be incorporated into ACCTS provisions. Concurrent with the negotiations, ACCTS participants 
welcome d interest from WTO Members  on the Agreement and would  continue to keep Members 
informed on developments. The resulti ng Treaty -level and WTO -consistent instrument would be 
open to other Members to join, provided they were able to meet its obligations. The goal of the 
ACCTS was to help inform broader trade and environmental discussions, including those held under 
the TESS D, by demonstrating how trade actions could  drive environmental outcomes.  
3.20.  The representative of Costa Rica  fully endorse d the intervention delivered by New  Zealand 
and appreciate d all the efforts and collaboration that it had provided throughout this negotiation.  
4  TRANSPARENCY OF ENVIRONMENT -RELATED TRADE MEASURES, ITEM 4 OF THE 
CTE WORK PROGRAM ME 
4.1  WTO Secretariat's u pdate on  the Environmental Database  2020  
4.1.  The WTO Secretariat  provided an update on the Environmental Database (EDB)7. The database 
at pres ent contained more than 7 ,000 notifications, with over 14,500 measures under different 
agreements and over 9 ,300 T rade Policy Review (TPR)  entries. Every year, almost 600 new 
notifications, 1 ,300 environment -related measures and about 750 TPR entries were uploaded  onto 
the database. The purpose of the presentation was to discuss the EDB 2020 Report 
(WT/CTE/EDB/20 ), which had been circulated the previous  week and focused on climate change. 
The Secretariat expla ined that the focus of the Report was to take a deep dive into the use of the 
search functionalities to look at the types of information and analysis that c ould be done on climate 
change using Member data on notifications and TPRs  (contained in Section 3 of the Report ).  
4.2.  Section 1 of the Report contained some overall overarching trends, with 84 Members from all 
around the world submitting notifications and over half a dozen having their TPRs reviewed in 2020. 
In terms of the top 10, in addition to developed and developing countries, Rwanda, an LD C, was in 
the top 10 of notifying Members for a second consecutive year. There had been  
 
7 See document RD/CTE/204.  WT/CTE/M/74  
 
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  a record 827  environment -related notifications submitted in 2020  contain ing about 
1,400 environment -related measures. As a proportion, the number of environment -relate d 
notifications had now doubled, which was about 16% of all notifications, or 1 in 6 notifications were 
environment -related.  In 2020, about half these notifications were technical regulations or 
SPS notifications, along with Licensing and Quantitative Rest rictions. These were followed by support 
measures under the Agreement on Agriculture and the SCM Agreement. In terms of sectors, 
agriculture was the most important with about 40% of environment -related measures, followed by 
chemicals and manufacturing. In terms of the type of environment -related objective s in 2020, 
chemicals  and hazardous and toxic substance management were still the most important with about 
36% of all environment -related measures, followed by MEA implementation , which was the second 
most cited category.  
4.3.  The Secretariat explained that a new chart on environment -related notifications and measures 
had been added to the EDB 2020 Report. In the last 12 years, from 2009 onwards, the number of 
notifications had steadily increased from 480 in 200 9 to 827 in 2021 . The number of measures had 
also increased, with about 1 ,400 per year. There were, however, some year -on-year variations since 
some notifications were made once every two years. This was most apparent in the SCM Agreement, 
where Article 25  notifications were made once every two years , which therefore affected the number 
of measures that were notified to the WTO. In 2020, there were more TBT and SPS measures.  
4.4.  Annex III of the EDB Report contained the list of environment -related objectives, types of 
sector and measure to which data was tagged and , based on which, users could run particular 
searches. In addition, the Secretariat mentioned that one of the improvements that had been made 
to the database since the last CTE meeting was that the fr ee text search had been strengthened to 
obtain more robust search results.  
4.5.  Section 3 of the Report focused on climate change. The Secretariat explained that it had used 
two search criteria to obtain this data : using an environment -related objective to sea rch for 
measures from notifications and keywords and the free text search to get results from TPRs for this 
Section . There were a number of environment -related objectives tagged in the EDB that were directly 
or indirectly related to climate change. From 20 11 to 2020, there had been year -on-year variations, 
partly due to the fact that subsidies notifications come once every two years. Nonetheless, there 
had been a large number of notifications on a variety of environment -related measures such as 
climate chan ge mitigation and adaptation, as well as ozone layer protection. Measures taken under 
the Montreal Protocol and the Vienna Convention on licensing , for instance, had also had a positive 
impact. Afforestation/ reforestation, air pollution reduction, energy conservation and efficiency, and 
alternate and renewable energy were also either indirectly or directly related to climate action.  
4.6.  The top 10 Members with respect to  climate change notifications were from all regions of the 
world. Technical regulations were the most important for climate action, but support measures in 
the form of grants, direct payments, and tax concessions were also important. In the area of ozone 
layer protection , for instance, import licensing was quite common and was unsurprisingly also in the 
top five types of measures. The SCM Agreement was the most common agreement from where such 
measures were drawn from. The TBT Agreement, Agreement on Agricu lture, Agreement on Import 
Licensing Procedures and the Decision on Notification Procedures for Quantitative Restrictions also 
make up the top five.  
4.7.  With respect to TPRs, the Secretariat explained the usage of keywords such as climate, 
renewable, emission s, and greenhouse  gases to draw results. It noted that , in the last five years, all 
TPRs have had at least some mention of climate and climate action measures. These were either in 
the form of renewable energy , energy efficiency measures, or forestry measu res.  
4.8.  The Secretariat proceeded to provide some examples of different Members' policies and 
measures that had been notified and were climate related . In the TBT area, there had been a 
notification from C ôte d'Ivo ire which regulated the import of second -hand vehicles emitting fumes 
and gases. Bahrain had an energy labelling requirement and a minimum energy performance 
standard which was also emission related . Moving to Quantitative Restrictions and Import Licensing 
Procedures, Moldova had a notification rela ting to a licensing scheme for usage of hydrocarbons and 
hydrochlorofluorocarbons  (HCFCs) and their impact on the ozone layer. There had also been a 
notification from Switzerland imposing a licensing requirement on forestry protective material for 
reforestation.  WT/CTE/M/74  
 
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  4.9.  The Secretariat concluded by provid ing examples of support measures under the Agreement 
on Agriculture and the SCM Agreement. With respect to the former, some had been notified under 
the Green Box, for infrastructure services, environment conservation through land and afforestation 
works (in the case of Tunisia for example ), dealing with and building resilience to climate -related 
measures (in Nepal ), and the El Ni ño effect  (with work being done in Peru to protect against it ). With 
respect to the SCM Agreement , for example, Thailand had supported the usage of plastic waste and 
the promotion of the usage of alternative energy, while the U nited S tates had  provided tax 
exemptions for energy from biomass. Ukraine had notified a United Nations Development 
Programme  (UNDP )-funded project under the Trade Facilitation Agreement for HCFC s phase  out for 
ozone -depleting substances. The E uropean Union had provided a notification under the Agreement 
on Services that had provided a new investment framework to attract investment in sustainable 
energy projects. These were just a few examples from hundreds in the EDB, which could be used 
for topic al and thematic analysis.  
4.10.  The Chairperson  thanked the Secretariat and opened the floor. He mentioned that , through 
the Secretariat's analysis and interactions with delegations, a lot of information c ould be harvested 
from EDB data. He also thanked the Secretariat for reminding Members that five new information 
briefs had been prepared by the Secretariat before COP26 that related to trade and climate -related 
issues , which were available on the WTO website.  He invited delegations to do a careful reading of 
the EDB as well as the environmental, trade , and climate briefs issued by the Secretariat, and the 
selected trade-related  measures in the 2021 MEA matrix in these areas. He also requested 
delegations and c apitals to take time to give their comments and suggestions so that the EBD could 
be continually improved.  
4.11.  The delegation from Bangladesh  took the floor and thanked the Secretariat for its work in 
compiling trade -related  measures notified under the auspic es of environmental and climate change 
issues. It requested the Secretariat to clarify how they had categorized trade -related  measures that 
fell under the category of environment -related measures and those that fell under the climate 
change -related measure s, as well as how that distinction was made.  
4.12.  The Chairperson  thanked Bangladesh for its intervention and highlighted the importance of 
delegations in providing feedback to the Secretariat to be able to harvest data and create up -to-date 
categories. He noted that the EDB was of great interest to him personally, and that it was often 
underappreciated, but was actually extremely relevant to the work of the Committee.  
4.13.  The WTO Secretariat  thanked the Chair person  and the delegation of Bangladesh for its 
interve ntion. It explained that , for the whole EDB, a search string had been  used and highlighted 
Annex I of the EBD Report , which contained a list of keywords that formed the basis of the search 
string used to sift through notifications and TPRs. Once this infor mation was found, data was 
subsequently entered into the database under different fields. One value addition provided by the 
Secretariat was that it tagged information by sector, measure, keywords, and environment -related 
objective. Annex  II listed these f ields, so notifications were tagged by these categories on the basis 
of the content of the notification. For example, windmills could be tagged to the energy sector or 
possibly the manufacturing sector ; this example  could also be tagged on the basis of whether it was 
a licensing measure, a technical regulation , or a support measure and so on.  
4.14.  With respect to the segregation of information on climate change itself, the Secretariat 
explained its usage of harmonized categories of environment -related object ives. There were 25 in 
total, out of which it had used six that were either directly or indirectly related to climate change  
(provided in footnote 25 to the EDB Report): afforestation/reforestation ; air pollution reduction ; 
alternate and renewable energy ; climate change mitigation and adaptation ; energy conservation 
and efficiency ; and ozone layer protection. These were used as subsets to identify climat e-related 
measures in the database , while for TPRs it used various keywords. The Secretariat also mention ed 
that it would be happy to provide further information bilaterally.  WT/CTE/M/74  
 
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  5  MEMBERS' SUGGESTIONS AND PROPOSALS  
5.1  Canada's update on behalf of the Coordinators of the Trade and Environmental 
Sustainability Structured Discussions (TESSD)  
5.1.  The representative of Canada said that TESSD co-sponsors had joined the two other 
sustainability initiatives in releasing a ministerial statement on Trade and Environmental 
Sustainability towards the end of last year. While co-sponsors had hoped to release it on the margins 
of MC12 , they had not want ed to delay the start of the next phase of their efforts. TESSD co-sponsors 
were pleased to have had an opportunity to hold an event to raise awareness of the statement and 
provide an overview of what they hoped to accomplish. The new st atement had  
attracted 71  Members accounting for 84% of global trade and including 29 developing Members  
and three  LDCs. The statement remained open to new co-sponsors who wished to join.  
5.2.  The representative said that co-sponsors were in the process of designing a work plan to help 
advance their work.  Co-sponsors had recently met to discuss their interests and priorities and had 
held a productive exchange. Co-sponsors would aim to finalize the work plan in the near term  in 
order  to begin work. Going forw ard, the representative said that the formal meetings of the TESSD 
would continue to provide a venue for exchanges and discussion on key issues of concern to Members 
as outlined in the ministerial statement. In the coming year , the TESSD also plan ned to pursue the 
creation of informal working groups, which would meet to hold additional discussions in informal 
sessions between the formal meetings.  
5.3.  The representative said the co-sponsors hoped these groups would help drive work towards 
tangible outcomes throu gh a dedicated focus on certain issues. Co-sponsors also planned to continue 
to work closely with stakeholders and to make the most of their expertise as they undertook their 
discussions. The next formal meeting of the TESSD would be on 7 February and the co-convenors 
extended an invitation to all Members to attend the meeting and to participate. The formal meetings 
of the TESSD were open to any Member, whether or not they  were a co-sponsor. The only caveat is 
that only the co-sponsors ha d a role in determi ning the work program me of the discussions. The 
representative said that the statement remained open to new co-sponsors, and the co -convenors 
welcomed all Members to reach out to either of the co -convenors (Canada and Costa Rica) if there 
was an interest i n discussing the work of the group.  
5.4.  The representative of the United Kingdom  said that the United Kingdom  support ed the  deliver y 
of concrete outcomes on environmentally sustainable trade through the WTO, and that the TESSD 
was an important forum to help achieve this. She said it was vital that co-sponsors buil t on the 
progress made at COP26 in Glasgow to achieve concrete outcomes and consensus on trade-related  
environmental issues and turn the tide on the climate crisis.  At the TESSD co-sponsors meeting  held 
on 20  January, the U nited Kingdom  had tabled a non -paper setting out its proposals on 
environmental goods and services, carbon le akage , and other elements for the TESSD work  plan. 
The U nited Kingdom  welcomed the positive comments received by fellow Members and the 
contributions by member states outlining their priorities and suggestions for the year ahead. The 
United Kingdom  looked forward to working with all interested member states to adopt an effective 
work plan. The representative said the U nited Kingdom  was keen to explore possible approaches for 
promoting and facilitating trade in environmental goods and services, as we ll as fostering focused 
discussions on carbon leakage, which were inclusive to all member states. The U nited Kingdom  also 
welcomed contributions from Members on other topics mentioned, such as on technical assistance 
and capacity building, circular economy , and sustainable agriculture. She said the U nited Kingdom  
hoped that Members w ould find these ideas a useful starting point and that her delegation look 
forward to progressing  dialogue on these issues among others related to trade, environment , and 
climat e change.  
5.5.  The representative of Switzerland  welcomed the successful launch of the TESSD Ministerial 
Declaration last December and the fact so many Members had joined this important initiative , which 
recognized that international trade and trade policy can  and must support environmental and climate 
goals. In the TESSD Declaration, co-sponsors agreed to intensify the work on common areas of 
interest and possibly identify concrete actions. In this regard, Switzerland believed that there was 
valuable input from different Members  and thanked the co -conveners for the work  plan, which was 
the re sult of a pragmatic approach. The representative said th at Switzerland believed that the three 
proposed workstreams reflect ed well the common interest of Members and that the plenary sessions WT/CTE/M/74  
 
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  also offer ed some room for other discussions. She said that her delegation also welcomed the 
participations of stakeholders , which w ould help to make progress.  
5.6.  The representative of the United States  said the United States was pleased to formally join the 
TESSD last year, and that his delegation was looking forward to  engaging with all co-sponsors to 
advance work at the WTO on key trade and environment issues. Co-sponsors had outlined an 
ambitious set of topics for the work of the TESSD this year, and his delegation was looking forward 
to a robust work  plan. He said th at the United States saw an opportunity to advance discussions this 
year on trade and climate change in the WTO, including discussions of how trade measures can 
address climate change , specifically looking beyond just the EU CBAM and considering a range of  
options to incentivize decarbonization and transition to a net -zero economy. The representative said 
his delegation also saw an opportunity for Members to discuss what technologies and goods could 
contribute to addressing climate change, which of these ca n be considered to be "clean" and 
"climate -friendly " technologies, goods, and services. Likewise, the United States also believed it 
would be important to continue discussions on circular economy approaches, which had a strong link 
to addressing climate ch ange impacts. While much of the focus had been on the first half of the 
circle, including in design measures and consumer use and application, the representative said that 
the TESSD co-sponsors should also explore what happens to products at end -of-life, including 
recycling and remanufacturing processes to facilitate a more circular approach to the entire lifecycle 
of a good. The representative said that his delegation looked forward to adva ncing the work of the 
TESSD and to its next meeting when the work plan for 2022  would be agreed . 
5.7.  The representative of China  said that, as a co-sponsor of both the IDP and the TESSD, China 
was grateful for Members ' active engagement and was proud of the si gnificant progress that had 
been made so far despite the postponement of MC12. In this regard, he said that China looked 
forward to working with Members to explore how the WTO could contribute to more coordinated, 
consistent , and effective trade policies.  
5.8.  The representative of Korea  thanked the TESSD co -conveners for the successful launch of the 
Ministerial Declaration despite the delay of MC12 and for hosting the informal co-sponsor meeting 
on 20 January. He said that his delegation also commended the co -conveners for coming up with a 
draft TESSD work plan for 2022 and looked forward to the formal meeting on 7 February for fruitful 
discussions regarding the timeline and specific t hemes of the informal working groups, including 
compliance of WTO rules on environmental trade measures and environmental goods and services.  
5.9.  The representative of Ecuador  thanked the TESSD co -convenors for their transparent and 
constructive work in the debates around trade and sustainable development and how these topics 
could contribute to other spheres. She said that Ecuador was a proud coordinator of the IDP and 
since D ecember was a co-sponsor of the TESSD as  well. She said that Ecuador was committed to 
the discussions and would actively and constructively engage in all structured discussions established 
under this initiative. She highlighted that , for Ecuador, sustainab le agriculture was a key issue to be 
addressed in these discussions. The dynamic connections between sustainable socioeconomic 
development and environmental conservation with international trade could play an active and 
diverse role . Ecuador called on all states, in particular developing countries, to both participate in 
the trade of agricultural products at a global level and because this trade has a transcendence in its 
sustainable development. She also said that Ecuador had environmental protection and s ustainable 
development as a foundation of its international action. The government of President Lasso had 
promoted substantive and local initiatives such as an ecological transition and circular economy 
policy. At the regional level , Ecuador together with Colombia, Costa Rica , and Panama had already 
taken a first step to create the largest transboundary marine biosphere reserve in the marine corridor 
of the tropical Eastern Pacific, uniting the marine reserves of the four nations. She said that that 
was why  Ecuador's focus would be on closely follow ing the discussions that would take place in 
relation to other issues, such as climate change, biodiversity, the circular economy , and 
environmental goods and services.  
5.10.  The representative of Australia  congratulate d all co-sponsors of the TESSD, of which Australia 
was also a co-sponsor, for the release of the TESSD Ministerial Statement in December 2021. 
Australia was pleased with the progress of the TESSD last year. These discussions had and would 
continue to provi de a useful avenue to explore how to progress trade-related  environmental policies 
and sustainability issues at the WTO. The representative said that Australia remained committed to 
the work set out in the Ministerial Statement, particularly efforts to enh ance trade -promoting policies 
that contribute d to environmental goals. He said that Australia also welcomed continued discussion WT/CTE/M/74  
 
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  on environmentally harmful subsidies, particularly the environmentally harmful effects of trade 
distorting agricultural subsidi es. Australia encouraged any WTO Members that had not yet done so 
to join the TESSD initiative , which ha d the potential to contribute significantly to ongoing joint efforts 
at the WTO, including, in particular, work in the CTE.  
5.11.  The representative of Japan  said that, while MC12 had been postponed, Japan welcomed the 
adoption of the TESSD Ministerial Statement on 3 December and the increase in co-sponsoring 
countries. He said that Japan thanked the relevant Members for their efforts, especially the 
co-conveners, Costa Rica  and Canada. The representative said that Japan would like to continue 
working toward achieving concrete results and was particularly interested in : (1) approaches to 
promotion and facilitation of trade in environmental goods and servi ces; and (2) trade-related  
climate measures and would like to deepen the discussions on those agendas.  He said that 
addressing climate change was an urgent issue that required a global response and believed that 
the TESSD statement share d the same purpose with the discussions of the CTE.  
5.12.  The representative of the Kingdom of Saudi  Arabia  said that Saudi Arabia had joined the 
TESSD in November  2021. She thanked the coordinators for elaborating on the draft 2022 work 
plan. The representative said that her capi tal was still reviewing the elements contained in the work 
plan. Saudi Arabia proposed a number of elements for the 2022 Work Plan, including that all 
discussions on trade -related climate measures and policies must be consistent with WTO rules and 
principl es and attentive to Members ' circumstances, degree of development, needs, priorities and 
paths towards achieving the SDGs in an inclusive manner;  advancing inclusive "Circularity " as a key 
in the trade and environment nexus ; that d ifferent  approaches needed to be promoted , such as 
"Circular Economy " that focus ed on materials and "Circular Carbon Economy " that focused on 
emissions;  that i nnovation , including business, technology, and policy were key elements to be 
pursued in the context of sustainable  global trade; the f acilitation of deployment and dissemination 
of all technologies as essential including low emission technologies; enabling cross -border 
investment and trade in low emission technologies , such as hydrogen, DAC, CCUS, e-fuels, 
renewables , and energy efficiency; encouraging capacity building to build national capabilities of all 
Members in  the environment and trade space; and avoiding tariff and non -tariff barriers, measures, 
and mechanisms. The representative said that the Kingdom of Saudi Arabia was keen to engage 
constructively with TESSD Members towards implementing a meaningful work pla n and to deliver 
on its objectives.  
5.13.  The representative  of Paraguay  said that, although Paraguay appreciated the work carried out 
by the TESSD co -convenors, Paraguay regretted that, despite having actively and constructively 
participated in the discussions , its position and that of many developing countries was unable to be 
satisfactorily reflected in the Ministerial Declaration. The representative said that , despite this, 
Paraguay would continue to participate in the discussions with the same constructive s pirit. He said 
that Paraguay hoped to continue counting on the openness of co-sponsors in order to find 
mechanisms to appropriately reflect the different interests and sensitivities of all Members, especially 
developing countries.  
6  RELATIONS WITH INTERGOVER NMENTAL AND NON -GOVERNMENTAL ORGANIZATIONS, 
ITEM 10  
6.1  Briefings by other observer organizations  
6.1.1   World Customs Organization   
6.1.  The representative of the World Customs Organization  (WCO) provided updates8 on the 
initiatives being undertaken by the WCO with rega rds to environmental sustainability and sustainable 
supply chains. Customs administrations had a critical role to play with respect to the control of the 
transboundary movement of environmental goods by supporting effective implementation of various 
MEAs, whose objectives included, among others, addressing the illicit trade in hazardous waste and 
ozone -depleting substances, combat ting the illicit trade in endangered species, and preventing the 
spread of plant and animal diseases, as well as of invasive alien species.  
 
8 See document RD/CTE/202.  WT/CTE/M/74  
 
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  6.2.  Considering the critical role that the WCO and customs administrations played in controlling 
and facilitating intern ational trade, the WCO  echoed the recent WTO Ministerial Declaration on trade 
and environmental sustainability  on the need to explore opportunities and approaches for facilitating 
the legal trade in environmental goods , considering not only the regulatory perspective, but also the 
technical requirements and the specificities of sustainable supply chains. The WCO was engaging in 
various activities to raise awareness of customs ' role in ensuring the security of supply chains, while 
facilitating trade in trans ition towards a circular economy in reverse supply chain logistics. In this 
respect, specific actions were being planned for the upcoming year on greening customs, including 
undertaking a study to raise broader awareness o f the evolving role of customs in supporting the 
circular economy and environmental outcomes, and identifying capacity gaps and opportunities for 
synergies and cooperation.  
6.3.  In this context, the WCO provided updates on the WCO's Asia -Pacific Plastic Waste Border 
Management Project9, which  was in progress under the auspices of the WCO Environmental 
Programme  and was expanding its scope. The project aimed to address illegal transboundary 
movements of plastic waste and strengthen the capacity of customs administrations to mitigate and 
appropriately respond to environmental threats in the Asia -Pacific region, with a special focus on the 
implementation of the Basel Convention on the Control of Transboundary Movements of Hazardous 
Waste and their Disposal.  
6.4.  In this framework, the WCO was o rganizing a regional  conference on Plastic Waste Border 
Management  on 24 -25 February 2022 to present the project 's findings related to its four beneficiary 
countries (Indonesia, the Philippines, Sri Lanka , and Viet  Nam). The outcomes of the project thus 
far would also be discussed in the wider context  of strategic considerations for the Asia -Pacific region, 
considering other initiatives on plastic waste at the global level. Recognizing that the ability to 
identify environmentally desirable goods and materia ls at the border was a central aspect in 
facilitating trade in such goods, the WCO was continuing to work with its members and relevant 
Inter-Governmental Organizations to develop proposals for specific provisions for such goods in the 
Harmonized System. T his would contribute not only to trade facilitation for these goods, but also to 
the collection of reliable statistics to support policy development.   
6.5.  The efforts by the WCO and its partners to address environmental risks would continue to 
intensify with m ore enforcement initiatives planned for the future, including the WCO's flagship 
enforcement operation ( Operation  DEMETER , focusing on waste and substances controlled under the 
Montreal Protocol) reaching its VII edition in 2021. Other activities being und ertaken or being 
launched this year by the WCO would focus on developing relevant data analytics capabilities and 
exploring the use of technology and digital infrastructures to facilitate the circular economy.  
6.6.  Building customs administration capacities to foster compliance while promoting trade 
facilitation and revenue collection was at the core of the WCO 's mandate and operations. Therefore, 
WCO's current programmes could find opportunities for further synergies, also in the context of 
digital transformati on and data analytics, driven by the new WCO theme for 2022 "Scaling up 
Customs Digital Transformation by Embracing a Data Culture and Building a Data Ecosystem ". Given 
the complexity of the topics and the ambition of the initiatives WCO was undertaking to  enable more 
sustainable and secure supply chains, the WCO recognized the role of partnership and intensified 
collaboration and welcomed the TESSD as a platform for cooperation to implement concrete actions 
also in the framework of the recently launched WTO Ministerial statement on trade and 
environmental sustainability . 
6.1.2   United Nations Industrial Development Organization   
6.7.  The representative of the United Nations Industrial Development Organization  (UNIDO) 
updated the Committee on recent developments at UNIDO related to trade and the environment. 
Ahead of COP27, UNIDO would develop a coordinated and comprehensive strategy that tackled the 
climate  agenda  while supporting developing and least developed countries in advancing towards 
inclusive and sustainable industrial development.  UNIDO Member States had called for such a 
comprehensive strategy in support of countries ' low-carbon industrial transit ion. Dr Gerd Müller , 
former German Minister for Economic Cooperation and Development and newly appointed UNIDO 
 
9 http://www.wcoomd.org/en/Topics/Enforcement%20and%20Compliance/Activities%20and%20  
Programmes/Environment%20Programme/AP%20Plastic%20Waste%20Project   WT/CTE/M/74  
 
- 24 - 
 
  Director -General , had also confirmed that climate action would be one of his main priorities for the 
Organization.  
6.8.  At present, industry was direc tly responsible for more than one -third of global primary energy 
consumption and energy -related carbon dioxide emissions, including from hard -to-mitigate sectors 
such as chemicals, steel , and cement. Given developing countries ' industrialization ambitions,  it was 
clear that the industrial sector would play a vital role in determining whether climate action would 
be achieved in line with internationally agreed targets. As countries were being requested to 
strengthen  their climate commitments under the NDCs, industry was generally not getting enough 
attention in these NDCs. UNIDO was uniquely positioned to develop and implement industrial 
practices that support ed climate -neutral and climate -resilient development pathways and support ed 
countries in meeting the objectives of the Paris Agreement, the 2030 Agenda for Sustainable 
Development , and associated mid -century net -zero objectives. Initiatives such as the Industrial 
Deep Decarbonization Initiative  (IDDI) , the largest and most diverse coalition of governments and 
private sector working to decarbonize heavy industries starting with steel, cement , and concrete , 
and UNIDO 's Global Programme for Green Hydroge n in Industry  would be key elements in UNIDO 's 
Climate Strategy.  
6.9.  An important trade dimension to the work of the IDDI related to the level playing field required 
for industries  in developing and emerging economies to participate and engage in future low -carbon 
product markets via transparent and fair disclosure criteria and standards. UNIDO aimed to 
contribute to these efforts through its normative work, as well as through capacity building services 
in Quality Infrastructure.  
6.10.  UNIDO also briefed delegations  about the Global Alliance on Circular Economy and Resource 
Efficiency (GACERE ), which was established a year ago by the European Commission on behalf of 
the European Union with  UNEP and UNIDO providing technical support to GACERE 's operations.  
6.11.  Since its l aunch, several working papers had been produced. They were knowledge products 
and part of the toolbox to support advocacy at a political level and in multilateral fora for transitioning 
towards a circular economy. The working papers of particular relevance  were on Circular Economy 
and Climate Change and on Circular Economy and Green Recovery. The latter document explored 
how circular economy approaches could contribute to a green recovery from the COVID -19 pandemic 
with a focus on medium and long -term recov ery measures. The paper presented several insights on 
how best to integrate circular economy  in industrial recovery plans and provided an overview of 
potential benefits, inter alia , by tackling structural inefficiencies across supply chains.  
6.12.  UNIDO announce d that the 2nd High -Level Meeting of GACERE, with the theme Circularity 
and Nature, would be held on the margins of  the 5th Session of the UNEA  on 2 March 2022. A 
GACERE Working Paper on Circular Economy and Biodiversity would be launched at this event.   
6.1.3   United Nations Environment Programme   
6.13.  The representative of the United Nations Environment Programme  (UNEP) congratulated 
WTO Members on the launch of the three ministerial statements in December 2021, reinforcing the 
commitment of the trade community in the global fight against the climate, nature, and pollution 
crisis. UNEP , including its administered MEAs , remained at hand to support WTO Members  in 
deliberating these issues.  
6.14.  UNEP briefed the Committee on the resumed Fifth Session of the UNEA taking place from 
28 February  2022 to 2 March  2022 with the theme "Strengthening Actions for Nature to Achieve the 
Sustainable Developmen t Goals"10. 
6.15.  Among the expected  decisions at UNEA -5.2, the most relevant for the trade community was 
likely to be on plastic pollution. Plastic pollution had strong impacts on economies and the 
environment, including on oceans, coastal , and terrestrial envi ronments. Many countries faced 
challenges in addressing trade-related  aspects of plastics pollution, including on plastic waste and 
moving towards environmentally sustainable and effective substitutes. Three resolutions were 
currently tabled on the topic. The first two resolutions proposed to establish an Intergovernmental 
 
10 See document RD/CTE/205.  WT/CTE/M/74  
 
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  Negotiating Committee for an international legally binding instrument:  Peru and Rwanda had 
proposed an international legally binding instrument on plastic pollution based on a comprehensi ve 
approach by promoting a circular economy and addressing the full lifecycle of plastics from 
production, consumption , and design to waste prevention, management , and treatment. Japan had 
proposed an international legally binding instrument on marine plas tic pollution covering the whole 
lifecycle and promoting resource efficiency and circular economy.  The third proposed resolution from 
India was formally submitted last week on a voluntary framework for addressing plastic product 
pollution including single -use plastic product pollution.   
6.16.  UNEP expected active engagement of Member States in the upcoming process leading to 
UNEA -5.2, including the Q&A session at the Committee of Permanent Representatives. Many Member 
States were urging agreement on a strong and ambitious resolution on plastics at UNEA -5.2 and 
UNEP stood ready to support both at UNEA -5.2 and in future  on this topic. UNEP also looked forward 
to continued and enhanced cooperation with the trade community in moving forward on this 
importan t topic.  
6.17.  Finally, UNEP shared the updates from a global project titled the "Trade, Development, and 
Environment Hub "11, a project funded by the UK 's Global Challenges Research Fund. Working with 
over 50 partner organi zations from across 15 countries and fo cused on eight countries across Africa, 
Asia, and Latin America, the project had delivered knowledge products, studies, and tools, as well 
as initiated global dialogue and cooperation aimed at reducing trade impacts on biodiversity and 
people, while enhanc ing positive economic development.  
6.18.  In light of the global  Biodiversity Conference COP15 planned for 2022, which aimed to secure 
nature positive commitments to halt and reverse the loss of biodiversity by 2030, this project would 
contribute to how trade an d the WTO could play a role in the post -2020 global biodiversity framework 
and the 2030 target. In the coming months, UNEP looked forward to continuing supporting Members 
with environmental science, data, technological information, and integrated assessmen t 
methodologies to support related discussions.   
 
_______________  
 
  
 
11 Available at: Home – Sustainable trade systems that benefit people and nature (tradehub.earth)  WT/CTE/M/74  
 
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  ANNEX 1: ITEMS OF THE CTE WORK PROGRAMME (1994)  
Item 1:  The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including  those pursuant to multilateral 
environmental agreements.  
Item 2:  The relationship between environmental policies relevant to trade and environmental 
measures with significant trade effects and the provisions of the multilateral trading 
system.  
Item 3(a):  The relationship between the provisions of the multilateral trading system and 
charges and taxes for environmental purposes.  
Item 3(b):  The relationship between the provisions of the multilateral trading system and 
requirements for environmental purposes r elating to products, including standards 
and technical regulations, packaging, labelling and recycling.  
Item 4:  The provisions of the multilateral trading system with respect to the transparency of 
trade measures used for environmental purposes and environ mental measures and 
requirements which have significant trade effects.  
Item 5:  The relationship between the dispute settlement mechanisms in the multilateral 
trading system and those found in multilateral environmental agreements.  
Item 6:  The effect of env ironmental measures on market access, especially in relation to 
developing countries, in particular to the least developed among them, and 
environmental benefits of removing trade restrictions and distortions.  
Item 7:  The issue of exports of domestically p rohibited goods.  
Item 8:  The relevant provisions of the Agreement on Trade -related  Aspects of Intellectual 
Property Rights.  
Item 9:  The work programme envisaged in the Decision on Trade in Services and the 
Environment.  
Item 10:  Input to the relevant bodies in respect of appropriate arrangements for relations 
with intergovernmental and non -governmental organizations referred to in Article  V 
of the WTO.  
 
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  WT/CTE/M/74  
 
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ANNEX 2: DOHA MINISTERIAL DECLARATION PARAGRAPHS  
32. We instruct the Co mmittee on Trade and Environment, in pursuing work on all items on its 
agenda within its current terms of reference, to give particular attention to:  
 
(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 restrictions and distortions would benefit trade, 
the environment and development;  
 
(ii) the relevant provisions of the Agreement on Trade -related  Aspects of Intellectual 
Property Rights; and  
 
(iii) labelling requirements for environmental purposes.  
 
Work on these issues should include the identification of any need to clarify relevant WTO rules. The 
Committee shall report to the [Fifth Sessio n of the] Ministerial Conference, and make 
recommendations, where appropriate, with respect to future action, including the desirability of 
negotiations.  . . . xxx  
 
33. 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 members wishing to perform environmental 
reviews at the national level.  [A report shall be prepa red on these activities for the Fifth Session.]  
 
51. The Committee on Trade and Development  and the Committee on Trade and Environment  shall, 
within their respective mandates, each act as a forum to identify and debate developmental and 
environmental aspects of the negotiations, in order to help achieve the objective of having 
sustainable development  appropriately reflected.  
 
 
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