WT/CTE/22  
 
18 November 2015  
(15-6102)  Page: 1/7  
    
 
REPORT (2015) OF THE COMMITTEE ON TRADE AND ENVIRONMENT 
 
1.  In 2015, the Committee on Trade and Environment in Regular Session (CTE) met twice 
under the Chairmanship of the Permanent Representative of Hong Kong, China, Ms. Irene Young, 
on 22 June1 and 6 October 20152 (formal meetings).  
2. The work of the CTE was organized in accordance with the mandate established by the 
Doha Ministerial Declaration, Paragraphs 32, 33 and 51.3 Discussions took place mainly on 
environmental requirements and market access i ssues under Paragraph 32(i) ("The effect of 
environmental measures on market access, especially in relation to developing countries, in particular the least-developed among them, and those situations in which the elimination or 
reduction of trade restrictions and distortions would benefit trade, the environment and 
development").  Other items addressed by the CTE were Paragraph 32(iii) on labelling requirements for environmental purposes, and item 1.
4 
3. No discussion took place under Paragrap h 32(ii) (relevant provisions of the 
TRIPS Agreement); Paragraph 33 (technical assistance, capacity building and environmental reviews); and Paragraph 51 (developmental and environmental aspects of the negotiations).   
1  PARAGRAPH 32 
1.1  Paragraph 32(i)  
"The effect of environmental measures on market access, especially in relation to 
developing countries, in particular the least-developed among them, and those situations 
in which the elimination or reduction of trade restrictions and distortions would benefit 
trade, the environment and development."  
 
4. One delegation recalled that topics placed on  the agenda for the meeting needed to be 
discussed in line with the mandate of the CTE under  paragraphs 32(i), (ii), (iii), 33 and 51 of the 
Doha Ministerial Declaration, in particular the effect of measures on market access of developing 
countries. This concern was supported by another delegation. 
1.1.1  First part of Paragrap h 32(i) – "The effect of envi ronmental measures on market 
access, especially in relation to developing  countries, in particular the least-developed 
among them"  
1.1.1.1  Energy Efficiency 
5. At the June meeting, seven delegations shared their experience related to domestic 
initiatives to further energy efficiency. The Euro pean Union (EU) presented two elements of its 
                                               
1 Available through WT/CTE/M/59, "Report of th e Meeting held on 22 June 2015", Note by the 
Secretariat.  
2 To be circulated through WT/CTE/M/60, "Report of  the Meeting held on 6 October 2015", Note by the 
Secretariat. 
3 The CTE Work Programme and the parts of the Doha Development Agenda that are relevant to the 
work of the CTE Regular are included in Annexes 1 and 2 respectively. 
4 Item 1 of the CTE Work Programme reads: "The relationship between the provisions of the multilateral 
trading system and trade measures for environmental purposes, includin g those pursuant to multilateral 
environmental agreements." WT/CTE/22 
 
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  broader energy efficiency policy framework: eco- design, which refers to mandatory requirements 
that eliminate the least energy efficient products from the market; and energy labelling, which seeks to pull the market towards the most energy efficient products by helping consumers make informed choices. The European Union indicated that its rules in this area were developed in close 
cooperation with both EU and non-EU stakeholders. In response to concerns expressed by some 
Members on the trade impact of its energy efficiency policies on developing countries, the European Union said that a recent study had found no negative market access impacts from both 
initiatives. Singapore explained that, as a small island, it had limited options to harness 
renewables, which made energy efficiency a core strategy to reduce carbon emissions. Singapore 
indicated that its efforts included: promoting adoption of energy efficient measures and technologies by addressing market barriers to en ergy efficiency; building capacity to sustain and 
drive energy efficiency efforts; raising awaren ess; and supporting research and development. 
6. Thailand presented its energy efficiency po licy and implementation, noting that energy 
efficiency was a key aspect of its energy policy. Other elements included financial incentives, 
standards and regulations, awareness raisin g efforts and tackling energy subsidies. 
Chile expressed its commitment to improving ener gy efficiency and to increasing the use of 
renewable energy, and identified some of the challenges and opportunities Chile faced in both 
areas. Pakistan explained the importance of ensuring adequate access to energy for the 
population, and the contribution that solar and wi nd energy could make to achieve this goal and 
help overcome the country's dependence on fossil fuel s. Pakistan also identified the cost of capital 
as the biggest challenge in improving energy security. 
7. Chinese Taipei presented its efforts to establish an energy efficient economy and create a 
"win-win-win" solution for energy, environm ent and the economy. Canada presented the 
ecoENERGY efficiency program,  which aimed  to improve energy efficiency in Canada. Investments 
under this programme had helped Canadian cons umers reduce energy costs and greenhouse gas 
emissions.  
8. Several delegations expressed interest in these experiences and commented on various 
related issues, including: capacity building and assistance for implementation; market and 
structural barriers to energy efficiency; internal coordination challenges; domestic energy efficiency labelling schemes; efficiency of energy saving programs; methodology for energy pricing and consumption measurement; and international cooperation in renewable energy projects. 
9. In addition to domestic experiences, delegations were also briefed by the Organisation for 
Economic Co-operation and Development (OECD)  on the broad array of measures that were being 
used worldwide to improve energy efficiency  and their possible trade implications. The 
International Organization for Standardization (ISO) provided an overview of the standards 
relating to energy efficiency, including ISO 50001, which sought to support organizations in using 
energy more efficiently. Several delegations expres sed interest in various aspects of ISO's work on 
energy efficiency standards and their implementati on. One delegation noted that standards should 
not be used as a protectionist trade tool. Several delegations asked whether the effect of the standard on market access, particularly for developing countries, had been analysed. 
1.1.1.2  Other topics 
10. At the June meeting, China explained its Ecological Civilization Strategy , which sought to: 
intensify environmental protection and resource co nservation; promote the ideals of green, circular 
and low-carbon development; deepen reform and encourage innovation; and raise public 
awareness. The Strategy's general requirements call ed on the government at all levels to support 
environmental protection and resource conservation  along with economic and social development.  
11. At the October meeting, on behalf of Canada, the International Hydropower Association 
briefed the CTE on the Hydropower Sustainability Assessment  Protocol , which was a tool for 
assessing the sustainability of hydropower plants or projects. Several delegations showed interest 
in the subject and supported the use of hydrop ower as a sustainable energy source. Some 
delegations indicated that the additional cost of  assessing and ensuring the sustainability of 
particular hydropower projects should be taken into account when determining their financial 
viability, and recalled the need to give due consideration to the special conditions of developing countries. WT/CTE/22 
 
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  12. Finally, the United Nations Conference on  Trade and Development (UNCTAD) briefed 
delegations on the benefits of promoting organic agriculture  in developing countries as it could 
support rural communities while improv ing environmental sustainability. The 
United Nations Environment Programme (UNEP) described some of its relevant projects and 
highlighted the trade opportunities and other benefits of organic farming in South Africa. The International Trade Centre (ITC) presented initiatives for helping agricultural exporters in 
developing countries to meet carbon standards and increase their resilience to climate change. 
Chinese Taipei shared its own initiatives in the field of organic agriculture, based on the principles 
of tradition and innovation.  
1.1.2  Second part of Paragraph 32(i) – "[S]ituations in which the elimination or 
reduction of trade restrictions and distorti ons would benefit trade, the environment and 
development"  
1.1.2.1  Illegal Logging 13. At the June meeting, delegations continued their discussion initiated in June 2014 and 
shared their experiences in combatting illegal logging and their efforts to promote legally 
harvested timber.
5  
14. Malaysia presented the Malaysian Timber Certification Scheme, noting that Malaysia was a 
major producer and exporter of tropical timb er. The scheme covered the Forest Management 
Certification and Chain of Custody Certification. Malaysia also presented its other initiatives to combat illegal logging, including its cooperation efforts with other countries. Russia shared its 
national experience in this area and indicated that the 2013 Roundwood Act sought to provide a 
system to track the life cycle of timber from the moment it was harvested until it was processed or 
exported. Russia also emphasized that illegal loggi ng and related trade pushed legal producers out 
of the market, undermining forest conservation and surveillance efforts while also causing 
irreparable damage to the environment.  
15. In the discussion, several delegations underscored the importance of cooperation and 
transparency in tackling illegal logging activities.  
1.1.2.2  Fossil Fuel Subsidy Reform 
16. At the June meeting, on behalf of the Friends of Fossil-Fuel Subsidy Reform6 (FFFSR), 
New Zealand and Norway presented the efforts and benefits of tackling inefficient fossil fuel 
subsidies. Recent developments included: the launch of a peer review process under which 
countries volunteered to have measures related to  fossil fuel subsidies reviewed by a panel; and 
the publication of a Communiqué aimed at accelerating action to eliminate subsidies.  
17. Some delegations supported the initiative and shared their related experiences. Some other 
delegations highlighted that the fossil fuel subsid y peer review was a voluntary process, without 
any linkage to the WTO, and were of the view that the CTE was not the appropriate venue to 
discuss those reforms. Some other delegations su pported continued discussions on the topic in  
the CTE. 
1.1.2.3  Fighting Illegal, Unrepo rted and Unregulated (IUU) Fishing 
18. At the October meeting, several delegations provided an overview of their countries' 
initiatives and measures to fighting Illegal, Un reported and Unregulated (IUU) fishing. Ecuador  
underscored the importance of the fisheries sector and provided information on its action plan to 
combat IUU fishing and the efforts to strengthen institutional capacity in this area. The United States described the work of its Presidential Task Force on Combating IUU Fishing and 
Seafood Fraud and announced plans to finalize rules for a traceability program by August 2016.   
                                               
5 See the minutes of the CTE meetings held on 30 June 2014 (WT/CTE/M/57) and on 23 October 2014 
(WT/CTE/M/58). 
6 The Friends of Fossil Fuel Subsidy Reform is a gr oup of non-G20 countries that support the reform of 
inefficient fossil fuel subsidies. The Friends group (New Zealand, Cost a Rica, Denmark, Ethiopia, Finland, 
Norway, Sweden and Switzerland) was formed in June 2010 to support G20 and APEC leaders' commitments to phase out inefficient fossil fuel subsidies. WT/CTE/22 
 
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  Mexico  presented specific actions and programmes to address IUU fishing, including vessel 
registration, satellite monitoring and on-board  observation, and noted that regional and 
multilateral cooperation was the best way to reinforce efforts against IUU fishing. The European Union described the EU policy on IUU fi shing, emphasizing the importance of creating a 
culture of compliance, ensuring traceability throughout the supply chain and promoting 
international cooperation, among other goals. 
19. The Philippines, Sri Lanka, the Republic of Korea, Norway, Chinese Taipei, Australia, 
New Zealand, and Papua New Guinea also shared their experiences in combatting IUU fishing. 
20. Several delegations underscored the environmental and socio-economic impacts of 
IUU fishing, while urging Members to take the interests of developing country exporters into consideration in their measures to combat IUU fishing. Some other delegations noted the 
importance of respecting the principles of no n-discrimination and avoiding the creation of 
unnecessary barriers to trade when implementing such measures. Some delegations recalled the connection between efforts to combat IUU fishing and the ongoing negotiations to address 
fisheries subsidies in the WTO. One delegation expressed concern regarding measures which were 
intended to identify at-risk species instead of focusing on regions where IUU fishing activities were known to occur. 
1.2  Paragraph 32(iii) – "Labelling requ irements for environmental purposes" 
21. At the June meeting, China presented it s environmental labelling scheme which was 
established in 1993. It covered 97 categories of products and aimed at: raising awareness among 
consumers of the importance of environmental prot ection; inspiring enterprises to manufacture in 
an environmentally friendly way; and enhancing the competitiveness of environmentally friendly 
products. Products covered by the scheme included automobiles, electronic products and textiles, as well as some service sectors. Chinese Taipei provided an overview of its Green Mark 
Programme launched in 1992. It comprised 133 product criteria across 14 product groups and more than 10,000 products and services had already been certified. Since 1997, 10 bilateral mutual recognition agreements with trading partners had been concluded and green requirements 
had been incorporated into its procurement law.  
1.3  Other items on the CTE's work programme  (Items 1, 2, 3(a), 4, 5, 7, 9, and 10)
7 
1.3.1  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." 
22. The WTO Secretariat introduced at the October meeting the updated "Matrix on 
Trade-related Measures Pursuant to Selected Multilateral Environmental Agreements".8 
2  OTHER BUSINESS 
2.1  Environmental Goods Agreement Negotiations 
23. At the June and October meetings, Australia provided updates on the negotiations of an 
Environmental Goods Agreement (EGA) among a grou p of WTO Members.  Australia explained that 
the full list of product nominations had been compiled in April 2015, covering around 650 tariff 
lines at the HS6 level, and that the focus of the EGA negotiations continued to be on building a list of products that would be covered by the EGA. EGA members were also discussing ways both to 
make the EGA a living agreement and to consider related issues such as services and non-tariff 
barriers. Several delegations welcomed this transp arency exercise and further information sharing 
was encouraged. Several delegations expressed co ncern regarding the status of the initiative 
including its genesis outside the WTO and pursuant to a mandate separate from the Committee on 
                                               
7  See Annex 1, the original CTE work programme which includes these items.  
8 "Matrix on Trade-related Measures Pursuant to Selected Multilateral Environmental Agreements", Note 
by the Secretariat, WT/CTE/W/160/Rev.7, TN/TE/S/5/Rev.5, circulated on 4 September 2015. WT/CTE/22 
 
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  Trade and Environment in Special Session (CTESS) negotiations under Paragraph 31 (iii) of the 
Doha Ministerial Declaration. These delegations also stated that the negotiation of plurilateral arrangements could undermine efforts at the multilateral level.  
2.2  Environmental provisions of China's Free Trade Agreements  
24. At the June meeting, China provided an overvi ew of the environmental provisions contained 
in China's free trade agreements (FTAs), with a focus on the China-New Zealand, China-Iceland, 
China-Switzerland and China-Korea FTAs. China's approach to environmental provisions in 
FTAs had evolved from references to environmental protection mostly in preambles, exceptions 
and sections on transparency and market access for environmental services to independent chapters on trade-related environment issues in more recent FTAs.  
2.3  Briefings by observer organizations 
25. At the June and October meetings, the United  Nations Framework Convention on Climate 
Change (UNFCCC) provided updates of the state- of-play of the climate change negotiations. 
26. At the June meeting, the Organisation for Economic Co-operation and Development (OECD) 
presented its report on "Aligning Policies for the Transition to a Low-carbon Economy".  The report 
emphasized the need for additional efforts to better align measures in different policy areas, 
including trade, in order to fully support the transition to a low-carbon economy. 
27. Some delegations welcomed and endorsed the co nclusions of the OECD report, stressing the 
need to transition to a low carbon economy. One delegation expressed concern that the OECD study lacked appropriate references to the UNFCCC, and stressed that certain policy 
measures, such as the establishment of carbon ma rkets, would not be effective in tackling the 
fundamental causes of global warming and woul d have negative consequences for developing 
countries. The delegation was not convinced that the reduction or elimination of tariffs on environmental goods would facilitate the transition to a low carbon economy. 
28. At the October meeting, as requested by some delegations, a representative of the 
UN Department of Economic and Social Affairs (UNDESA) briefed the CTE on Agenda 2030, which 
was formally launched at a UN Summit held from 25 to 27 September 2015 in New York, and the 
Addis Ababa Action Agenda, which was adopted in July 2015. This followed a WTO Secretariat 
briefing at the CTE meeting in June on the main trade-related elements under consideration in 
these processes. Some delegations welcomed the clear link between trade and sustainable development reflected in the Sustainable Development Goals (SDGs) and the recognition in 
Agenda 2030 of the importance of the multilateral  trading system and the conclusion of the Doha 
round as a means to implement SDGs.  
2.4  WTO Secretariat's information session on various trade and environment topics 
29. Following requests by several delegations, the CTE received at the October meeting an 
informal presentation by the WTO Secretariat on "Selected GATT Article XX (b) and (g) Cases: the 
United States – Shrimp case and the Brazil – Retreated Tyres case".  
 
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  ANNEX 1:  ITEMS OF THE CTE WORK PROGRAMME 
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 relating to products, including standards 
and technical regulations, packaging, labelling and recycling. 
Item 4: The provisions of the multilateral trad ing system with respect to the transparency 
of trade measures used for environmental purposes and environmental measures 
and requirements which have significant trade effects. 
Item 5: The relationship between the disput e settlement mechanisms in the multilateral 
trading system and those found in mu ltilateral environmental agreements. 
Item 6: The effect of environmental 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 prohibited goods. 
Item 8: The relevant provisions of the Agreem ent 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/22 
 
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ANNEX 2: PARTS OF THE DOHA  MINISTERIAL DECLARATION TH AT RELATE TO THE WORK 
OF THE CTE REGULAR  
 
32.  We instruct the Committee 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 Agreemen t on Trade-Related Aspects of Intellectual 
Property Rights; and 
 
(iii) labelling requirements for environmental purposes. 
 
Work on these issues should include the identifica tion of any need to clarify relevant WTO rules. 
The Committee shall report to the Fifth Session of the Ministerial Conference, and make recommendations, where appropriate, with respect to future action, including the desirability of negotiations. The outcome of this work as well as the negotiations carried out under 
paragraph 31(i) and (ii) shall be compatible with  the open and non-discriminatory nature of the 
multilateral trading system, shall not add to or diminish the rights and obligations of members 
under existing WTO agreements, in particular th e Agreement on the Application of Sanitary and 
Phytosanitary Measures, nor alter the balance of these rights and obligations, and will take into 
account the needs of developing and least-developed countries.  
33.  We recognize the importance of technical assist ance and capacity building in the field of trade 
and environment to developing countries, in part icular 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 prepared 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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