RESTRICTED  
  
WT/CTE/M/55  
 
16 August 2013  
(13-4404)  Page: 1/14  
Committee on Trade and Environment    
 
REPORT OF THE MEETING HELD ON 5 JUNE 2013 
NOTE BY THE SECRETARIAT1 
The Committee on Trade and Environment (CTE Regular) met on 5 June 2013, chaired by 
Ambassador Esteban B. Conejos, Jr. (The Philippines).  The Committee adopted the Airgram, 
WTO/AIR/4107, issued on 4 April 2013.  The latest list of documents of the Committee was 
circulated on 3 May 2013 in document WT/CTE/INF/5/Rev.11 .  The Report of the last CTE 
meeting, held on 13 November 2012, is contained in WT/CTE/M/54 , dated 15 March 2013. 
 
_______________ 
 
 
  
Contents 
1   PARAGR APH 32 ........................................................................................................... 2
 
1.1   Paragraph 32(i) on Environmenta l Requirements and Market A ccess ................................. 2  
1.1.1   First part of Paragraph 32(i) on "Environmental Requirements and Market 
Access": Information Exchange  on Carbon Footprint .............................................................. 2  
1.1.2   Second Part of Paragraph 32(i) on "S ectoral Analysis" ("win- win-win" situations) ............ 10 
1.2   Paragraph 32(ii) on TRIPS ......................................................................................... 12 
1.3   Paragraph 32(iii) on Labelling ..................................................................................... 12 
2   OTHER ITEMS ON THE CTE AGENDA .......................................................................... 12  
2.1   Item 3(a): "The relationship between the provisions of the multilateral trading 
system and charges and taxes fo r environmental purposes." .................................................. 12 
2.2   Item 4: "The provisions of the multilateral trading system with respect to the 
transparency of trade measures used for environmental purposes and environmental 
measures and requirements which ha ve significant trade effects." .......................................... 13 
3   PARAGRAPH 33 OF THE DOHA  MINISTERIAL DE CLARATION ..................................... 13  
4   PARAGRAPH 51 OF THE DOHA  MINISTERIAL DE CLARATION ..................................... 13  
5   OTHER BU SINESS ...................................................................................................... 13  
 
 
                                               
1 This document has been prepared under the Secret ariat's own responsibility and is without prejudice 
to the positions of Members or their rights and obligations under the WTO. WT/CTE/M/55 
 
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  1  PARAGRAPH 32  
1.1  Paragraph 32(i) on Environmen tal Requirements and Market Access 
"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." 
1.1.1  First part of Paragraph 32(i) on "Environmental Requirements and Market 
Access": Information Exchan ge on Carbon Footprint 
1.1.1.1  ISO 14067 Technical Specification Re lated to the Requirements and Guidelines 
for Quantification and Communication of  Greenhouse Gas Footprint of Products 
1.1.  Mr. Kevin McKinley, Deputy Secretary-Genera l, International Organization for Standardization 
(ISO), provided an update on the ISO 14067 technical specification related to the requirements 
and guidelines for quantification and communi cation of greenhouse gas (GHG) footprint of 
products.  ISO 14067 was based on existing ISO standards, in particular ISO 14040 on life cycle 
assessment, ISO 14025 on environmental labels and declarations, and ISO 14064 on the 
validation and verification of greenhouse gas assertions.  In addition, the World Business Council for Sustainable Development's (WBCSD) GHG Protocol and the British Standards Institution's 
Publicly Available Specification (PAS) 2050, among others, were used as guidance in order to 
ensure as much consistency and harmonization as possible with existing approaches.     
1.2.  Besides defining a proper structure and building on independently developed ISO standards, 
some of the key challenges faced during the elab oration of ISO 14067 involved addressing diverse 
interests and expectations inside the ISO membersh ip and the strong linkage to climate change.  
Stakeholder groups from industry, government, labour, consumers, non-governmental organisations, and the ISO Council Committee on Conformity Assessment
2 (CASCO) had either 
contributed to the process or shown great interest.  Ten international or broadly-based regional 
organisations, known as liaison organisations without voting power, had also been involved in the technical process of ISO 14067.  After a five year development process, ISO members agreed in 
April 2013 to publish ISO 14067 as a Technical Specification
3 in June 2013, following the lack of 
consensus to issue the draft document as a standard.  Over the next three years, ISO 14067 would be reviewed to see how the technical specification could move to an ISO standard within a period of five years.  A review of the appeal process launched by the Bureau 
of Indian Standards (BIS) against ISO 14067 will be undertaken by the ISO Technical Committee 
at the end of June 2013. 
1.3.  Mr. McKinley explained that ISO 14067 specified principles, as well as particular requirements 
and guidance for quantifying and communicating th e product carbon footprint (PCF), but that it 
excluded carbon offsetting from its scope. A PCF communication in the form of an external communication report, performance tracking repo rt, label or declaration was an option, not a 
requirement, of ISO 14067.  If an organisation de cided to make a PCF publicly available, it would 
have to decide between a third party verification of the PCF or the publication of a PCF disclosure 
report, as ISO 14067 did neither specify the type of conformity assessment to be conducted, nor prescribe any third party certification.  The re quirements for a PCF communication programme and 
PCF verification would be optional if the communication of the PCF was not intended to be publicly 
available (e.g. between two business partners).   
1.4.  ISO 14067 was part of a range of ISO documents developed to address global challenges 
such as energy management and social respon sibility.  The ISO Environmental Management 
Committee was drafting a water footprint standard, the voting results of which would be discussed at the next meeting of the ISO Committee in Botswana by the end of June 2013.   
1.5.  The representative of Oman was interested to learn more about the water footprint standard 
being developed. 
                                               
2 ISO CASCO is in charge of developing ISO standards for testing, inspection and certification. 
3 The approval of an ISO technical specification re lies on a two-third endorsement and no more than 
25% objection of the full ISO membership. WT/CTE/M/55 
 
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  1.6.  The ISO representative explained that the water footprint standard, under development, 
referred to the water usage and water performance of an organisation based on its life cycle.     
1.7.  While stressing the purely informative charac ter of ISO's presentation, the representative of 
Egypt considered that the lack of consensus among ISO members to publish ISO 14067 as an 
ISO standard had unveiled a lack of legitimacy in applying this technical specification on international trade.  Egypt requested clarificat ion on the ISO process regarding the three- and 
five-year review period, as well as the appeal launched by India.  Any discussions regarding ISO 
14067 should include an impact assessment on in ternational trade, technology transfer and 
capacity enhancements for developing countries.  Egypt further enquired as to the link between ISO 14067 and the on-going negotiations in the United Nations Framework Convention on Climate Change (UNFCCC).   
1.8.  The ISO representative informed that within the framework of the ISO, a technical 
specification was a document based on consensus, which did not necessarily imply unanimity.  In 
the case of ISO 14067, the technical specification only assessed GHG emissions associated with 
the life cycle of a product with no consideration to any related social or economic aspects.  The 
ISO representative further confirmed that India's appeal was currently under consideration and would be dealt with by the end of June 2013.  If the appeal was upheld, ISO 14067 would be 
withdrawn and returned to the Committee for re view.  The normal review process for any 
ISO standard is five years. 
1.9.  The representative of Guatemala enquired about the practical implications of publishing 
ISO 14067 as a technical specification rather than a standard. 
1.10.  The ISO representative explained that ISO 14067 was approved and published as a 
Technical Specification – a type of pre-standard.  It had not passed the final step of approval for 
an International Standard, namely two-thirds approval with no more than 25% of the 
ISO membership objecting. The actual use and implementation of the ISO 14067 technical 
specification would provide input to its three-year review.    
1.11.  The representative of Cuba expressed conc ern and called for further clarification over the 
serious discrepancies in terms of precision and credibility of the environmental impacts specified 
by ISO 14067, which requested, according to ISO 1404 0, the carbon footprint of the lifecycle of a 
product to be expressed into one single global figure despite the lack of scientific basis to do so.   
1.12.  The ISO representative stressed that since ISO 14067 only assessed GHG emissions it 
should not be used to communicate on the overall environmental superiority of a product.   1.13.  The representative of China supported th e development of a science- and consensus-based 
international standard on carbon footprint, which could reduce the increasing number of different 
carbon labelling initiatives and minimise barriers to trade.  However, China considered that the 
lack of support to approve the final draft of IS O 14067 as a standard had important implications 
for international standard-setting governance.  An y international standard-setting process should 
fully respect the Decision of the Committee on Technical Barriers to Trade (TBT) on the 
Six Principles for the Development of International Standards, as well as the special trade needs of developing countries Members, and promote more tangible and practical ways to facilitate the participation of developing countries in the development of international standards.   
1.14.  The representative of Argentina informed that they had voted against the ISO 14067 project 
because it was considered to incorporate concepts not yet agreed multilaterally and not based on 
scientific evidence, which could create international trade barriers. 
1.15.  The representative of the Bolivarian Repub lic of Venezuela supported the purely informative 
character of ISO's presentation, but was concerned that ISO 14067 could have an impact on trade 
and be used as a trade barrier or protectionist me asure.  His delegation was therefore interested 
to know whether any analysis had been carried out on the impact of ISO 14067 in developing 
countries.  Referring to the principle of Common But Differentiated Responsibilities (CBDR), the representative of Venezuela further enquired whether ISO 14067 provided for a different treatment to developing countries.  More genera lly, the Bolivarian Republic of Venezuela was 
interested to learn more on the compatibility of ISO 14067 with respect to the on-going WT/CTE/M/55 
 
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  negotiations and discussions in th e UNFCCC, as well as the involvement and contribution of the 
UNFCCC in the development of ISO 14067. 
1.16.  The ISO representative explained that ISO did not develop two-tier standards and therefore 
ISO 14067 applied equally to developed and developing countries.  The voluntary nature of the 
ISO system promoted the involvement of all stakeholders in its process, including the 
UNFCCC which, as a liaison body, played an ac tive role in the Technical Committee and the 
sub-Committee in charge of ISO 14067 development.   The UNFCCC was also actively contributing 
to CASCO as the usage of ISO standards was impo rtant in the designing and oversight of some 
work under the mechanisms of the Kyoto Protocol.  
1.17.  While stressing the need to respect the fine balance between each multilateral 
organisation's area of expertise, the representa tive of India was of the view that the current 
ISO process was encouraging countries to adopt environment-related standards, despite the lack 
of uniform methodologies.  Noting that ISO 1406 7 failed to obtain the consensus necessary for 
publication as an ISO standard, at each vote, India asked for clarification with respect to 
ISO's administrative procedures. 
1.18.  The ISO representative recognized the need for consistency and harmonization as a large 
number of private standards dealing with social and environmental aspects, as well as 
product-category and sector-specific issues, could have huge market impacts, particularly on 
agricultural producers.  The ISO had published a document on cooperation with organisations, such as the Codex Alimentarius Commission on Food Safety, and the WTO Committees on Sanitary and Phytosanitary Measures (SPS) and TBT, in an  attempt to reach coherence and consistency on 
private standards related to food safety, the environment and information technology.  He stressed 
that any ISO committee had the option of publishing a document as a technical specification, laying requirements or guidance, when no full consensus could be reached to publish it as a 
standard.  At the end of the three-year period review, ISO members would be requested to decide 
whether to revise, withdraw or maintain ISO 14067.   
1.19.     The representative of the Kingdom of Saudi Arabia was of the view that environmental 
footprinting schemes could be used as a restriction to trade and impose burdensome 
requirements, specifically for developing countries .  In particular, the assessment of the carbon 
footprint based on a life-cycle analysis would raise concerns similar to those related to processes and production methods (PPMs) and could not pr ovide a basis to distinguish among products.  
Further, he recalled that any environmental requirements had to be consistent with applicable 
WTO rules, while taking into account the special situation of developing country Members. 
1.20.  The representative of South Africa noted that more information, including a full assessment 
of the trade implications, was required to make an informed decision on the potential trade 
impacts of ISO 14067, particularly with regard to developing countries.  Without prejudice to discussions taking place in other international fora, and for purposes of information sharing, 
information exchange on the various international and national carbon footprinting schemes was 
welcome. 
1.21.  The representative of the European Union (EU) considered the CTE to be the right forum to 
pursue the debate on PCF, and not the UNFCCC.  The European Union agreed with China on the 
need to have a single international standard in order to prevent trade impacts resulting from the 
proliferation of other carbon standards.  The Europe an Union was of the view that the definition of 
ISO standards should not be based on the principl e of CBDR, as it was a principle of the UNFCCC. 
1.22.  The representative of El Salvador referred to studies undertaken by various international 
bodies, including the United Nations Economic Commission for Latin America and the Caribbean 
(ECLAC), which indicated that carbon footprinting standards would negatively affect many of the 
main agricultural exports of countries from Latin America, in particular Central America.    
1.23.  The representative of Australia supported  the development of an international standard on 
carbon footprinting and labelling based on a lifecycle analysis and consistent with WTO obligations.  
A proliferation of national schemes could increase compliance costs and trade barriers and be used 
as a form of green protectionism. WT/CTE/M/55 
 
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  1.24.  The representative of Canada echoed the views expressed by Australia and stressed the 
importance of a shared technical basis to ensure a consistent and compatible approach to PCF and 
avoid the creation of unnecessary barriers to trade, including the proliferation of different national 
standards and requirements. 
1.25.  While welcoming information exchange on this  issue, the representative of Pakistan recalled 
the importance of focusing on policies supporting the dissemination and promotion of 
environment-friendly technologies for developi ng country Members, and the need to avoid a 
proliferation of standards as they could be used as protectionism. 
1.26.  The representative of the Philippines welcom ed the purely informative character of the ISO's 
presentation and supported further discussions in the CTE.  His delegation noted that although 
differences between a standard and a technical specification within the ISO framework were 
mainly procedural in nature, the ISO process did have political dimensions.  The Philippines 
considered that the current development of the ca lculation method for carbon footprint based on 
lifecycle analysis could be linked to the on-going debate on carbon-related border measures.   
1.27.  The representative of Chile indicated that the development of domestic standards in Chile 
was based on international standards in order to facilitate entry to new markets.  Chile had 
supported the development of ISO 14067, because the establishment of global rules would not 
only have a positive impact on the predictability of trade, but also support the perspective of 
developing and small economies.   
1.1.1.2  European Union's Single Ma rket for Green Products Initiative 
1.28.  Mr. Alberto Parenti, Sustainable Consumption and Production Coordinator, 
European Commission Directorate General for the Environment, European Union (EU), presented 
on the Single Market for Green Products (SMGP) initiative, adopted as a Commission 
communication and recommendation on 9 April 2013.  More than 400 environmental labels and 
more than 80 reporting initiatives concerning GHGs were currently in place worldwide.  Evidence 
suggested that this proliferation was increasing consumer confusion and mistrust towards corporate environmental claims.  This lack of tr ust, due to the lack of clear definitions and 
scientific basis, created the risk of green washin g with products harmful to the environment being 
marketed as green products.  The objective of the SMGP initiative was to address the proliferation 
of green labels and methods to prove green cred entials by levelling the playing field for green 
producers and avoiding free riding.   
1.29.  The SMGP initiative provided principles for communicating products and organisations' 
environmental performance, such as transparen cy, reliability, completeness, comparability and 
clarity.  It further established, through a transparent and open consultation process involving 
EU and non-EU stakeholders, the Product Envi ronmental Footprint (PEF) and Organisation 
Environmental Footprint (OEF) methods, both based on the most widely used and tested methods in the market.  Unlike most environmental assessment methodologies focusing on a single aspect 
of environmental sustainability, the PEF and OE F methods covered 14 life-cycle environmental 
impacts of a product or a company.  Both PEF and OEF methods were aimed to operate as an 
umbrella, with product-group-specific and sector-s pecific rules to be developed, based on inputs 
received from EU and non-EU interested companies, industrial and stakeholder organisations 
during a three-year pilot phase.  The pilot phase was also expected to identify benchmarks for 
comparability, test compliance and verification systems, and to test different means of communication, in order to support international efforts towards enhanced coordination in 
methodological development.   
1.30.  Although the SMGP initiative was not rela ted to market access, the representative of the 
European Union considered that it could have positive effects on the market by avoiding the 
creation of unnecessary costs for companies interested in exporting in different countries but 
having to comply with the diverse criteria of the various domestic green schemes already in place.  In addition, the initiative would provide assurance for schemes based on scientific evidence, and create market opportunities for green products .  The European Union was also committed to 
assisting emerging economies and developing co untries to implement the PEF and OEF methods, 
including through a project with the United Nations Environment Programme (UNEP) on life cycle data generation. WT/CTE/M/55 
 
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  1.31.  The representative of Australia recognised  the importance of enhancing the environmental 
performance of products and organisations and pr oviding consumers with such information, while 
minimising the impact of these initiatives on producers.  Noting that the EU initiative could have an impact on third country producers, the representati ve of Australia enquired as to any EU plans to 
consult with their non-EU trading partners and pr oducers during the pilot phase of the initiative. 
1.32.  The representative of New Zealand echoed similar concerns and invited the European Union 
to work closely with other international institutions developing similar methodologies in order to 
encourage consistency and mitigate the risk of proliferation of divergent or inconsistent 
methodologies. 
1.33.  The representative of the European Union indicated that European Union focus was currently 
on the technical side of the initiative.  Once the technical challenges were settled, they would look 
into any political challenges, including consultations with non-EU WTO Members.  Since the 
European Union was not a standardising organisation, the PEF and OEF methods would be competing with other available methodologies. 
1.34.  The representative of Argentina raised conc erns over the lack of international consensus on 
many of the variables included in the definition of environmental footprint of the EU initiative. 
1.35.  The representative of the Bolivarian Repu blic of Venezuela enquired as to the analysis 
undertaken to assess the impact of the initiative on non-EU WTO Members, in particular 
developing countries. 
1.36.  The representative of the European Unio n explained that an impact assessment of the 
initiative was currently being conducted, that would also look at the potential impact on non-EU 
countries, in particular developing countries.  One of the concerns raised was the lack of quality 
data in developing countries.  The European Union was planning to publish a free secondary database to perform life cycle assessment, an d to help small and medium-sized enterprises 
wishing to gain access to the EU market. 
1.37.  The representative of Egypt enquired as to whether the European Union was considering a 
future move from a voluntary init iative to a compulsory approach. 
1.38.  The representative of the European Union co nfirmed that they did not intend to establish a 
compulsory system, which would be neither useful nor possible from a technical and political point 
of view. 
1.39.  The representative of Mexico expressed concerns over the potential trade impact and 
products discrimination, and requested further information on the rules and implementation steps 
for product selection subject to specific rules. 
1.40.  The representative of the European Union informed that the next step would be the 
benchmark development of selected product-group-specific and sector-specific rules based on 
submissions received from companies and stakehol ders interested in participating and that had 
applied to the open call. The European Union would then select a few products and sectors, and let 
the actual technical work begin in order to develop specific benchmarks.  
1.41.  While recognizing the potential contribution of the EU initiative to the international 
coordination on carbon footprint assessment meth odologies, the representative of China enquired 
on the mechanisms established by the European  Union to ensure the involvement of non-EU 
stakeholders, including through a possible notifica tion to the WTO, in order to minimize the 
potential negative trade impacts of the initiative. 
1.42.  The representative of the European Union reiterated that the PEF and OEC methods covered 
all environmental impacts, not only GHG emissions. The European Union was of the view that the 
initiative would not contribute to the proliferation of methodologies because the best of all relevant available methodologies were being incorporated in to a tool that would progressively incorporate 
new, enhanced methodologies.  The European Un ion were consulting with non-EU stakeholders, 
but had no intention to notify the voluntary SMGP initiative to the WTO as it did not constitute a technical regulation within the meaning of the Agreement on Technical Barriers to Trade. WT/CTE/M/55 
 
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  1.43.  The representative of Oman enquired as  to the differences between the PEF method and 
traditional life-cycle assessment methodologies. 
1.44.  The representative of the European Union explained that the PEF was the translation of the 
general discipline of the framework of life-cycle assessment into a method setting up solid and 
scientifically based rules to undertake an environmental performance assessment of a product. 
1.1.1.3  Publicly Available Specification (P AS) 2050 on the assessment of the life cycle 
greenhouse gas emissions of goods and services 
1.45.  Ms. Maria Varbeva-Daley, Sector Content Manager – Sustainability, British Standards 
Institute (BSI), provided an update on the 2011 revision of PAS 2050 on the assessment of the life 
cycle GHG emissions of goods and services.  With in the BSI framework, a PAS was an informal 
fast-tracked voluntary standard which followed a shorter development process and was particularly 
suitable for subject matters characterized by limited technical knowledge.  Prior to the 
development of PAS 2050 in 2007, following a request from the United Kingdom (UK) Department for Environment, Food and Rural Affairs and th e Carbon Trust, knowledge and experience on 
consumption-based and product-related GHG emissi ons were non-existent.  The elaboration of 
PAS 2050 took over 18 months and followed an independent process with a group of experts from academia, government, non-governmental organisa tions and industry, who were tasked with the 
responsibility of monitoring the development proc ess, considering often conflicting comments and 
addressing issues such as data reliability and uncer tainty in the building of the theory of PCF.   
1.46.  The BSI published PAS 2050 in 2008, which was at the time the first internationally 
applicable and consensus-based standard for PCF.  In particular, PAS 2050 provided a robust and 
reliable framework methodology for quantifying, along the supply chain, the six main 
GHG emissions
4 of products and services.  However, the scope of PAS 2050 did not include 
communication or comparability of the carbon foot print.  The voluntary nature of PAS 2050 also 
implied that no barriers to trade were imposed. 
1.47.  Since the disciplines of PCF were rapidly changing, PAS 2050 underwent a 2011 revision in 
order to take into account advances in technical knowledge, clarify ambiguities related to 
quantification aspects, including the absence of any communication and comparison requirements.  
It also removed any confusing differences with respect to other international initiatives, namely ISO 14067 dealing with communication and the WBCS D GHG Protocol focusing on reporting.  The 
revision also incorporated users' experiences by recognizing, through the concept of 
supplementary requirements, that different sectors operated in a variety of ways, in particular 
small organisations.  In 2012 the BSI published the first set of sector-specific PAS 2050 requirements for the horticulture industry.  BSI was also in the process of publishing 
PCF requirements for aquatic and textile products .  In addition to PAS 2050, the BSI published 
PAS 2060 on carbon neutrality and were undertaking wo rk on a new city footprinting methodology.   
1.48.  The representative of China enquired about the similarities and differences between 
PAS 2050 and ISO 14067, and on the competitive relationship between PAS 2050 and the 
EU SMGP initiative. 
1.49.  The representative of the British Standa rds Institute informed that both PAS 2050 and ISO 
14067 documents were as aligned as possible, with the removal of unnecessary differences and 
with methodological decisions having been made quit e similar.  In fact, the BSI was involved in the 
development of ISO 14067 while the ISO Secretariat had representation during the latest revision of PAS 2050.  The main difference between bo th documents was the purpose they served: 
PAS 2050 was a pure quantification methodology, while ISO 14067 also dealt with communication.  
PAS 2050 was, in all probability, the most widely used PCF methodology at the framework level because it had been the longest in existence.  PAS 2050 should only be removed in order to avoid 
proliferation once an international standard was to be adopted by consensus.  The BSI 
representative considered PAS 2050 and the EU initiative as complementary, since PAS 2050 focused exclusively on GHG emissions, while the EU initiative addressed a wider range of environmental impacts through its environmental footprinting methodology. 
                                               
4 The six GHG covered by the Kyoto Protocol to the UNFCCC are carbon dioxide, methane, nitrous oxide, 
hydrofluorocarbons, perfluorocarb ons and sulphur hexafluoride. WT/CTE/M/55 
 
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  1.50.  The representative of the Kingdom of Saudi Arabia was concerned that although 
PAS 2050 was voluntary, it could eventually lead to mandatory commitments. 
1.51.  The representative of the British Standards Institute confirmed that the United Kingdom had 
no intention to adopt a mandatory standard, but recognized that some organisations could decide 
to request suppliers along their supply chain to provide relevant PAS 2050 compliance information. 
1.52.  The representative of Argentina recalled that Argentina did not recognise the BSI as an 
international standardising institution, and expressed concern over the increasing number of 
standards which, although formally voluntary, became mandatory when a country wanted to 
export to certain markets.  One of the major difficulties surrounding environmental labels was the lack of available information to local protagonists.  It was recalled that environmental standards should be compatible with WTO law, take into account the economic environment of the countries 
affected, and be based on solid scientific evidence, relevant international standards and 
consensus.  
1.1.1.4  Nigeria's Lagos State Carbon  Footprint and Management Project 
1.53.  While highlighting the usefulness of carbon footprint as a tool, the representative of Nigeria 
presented an initiative of the Lagos State Envi ronmental Protection Agency and the Lagos Trade 
Ministry of Environment Climate Change Unit, entitled the Lagos State Carbon Footprint and 
Management Project.  It established (1) a footprin t label to be displayed on products and services 
of companies registered to be audited; (2) a control label appearing on products and services of companies having reduced carbon emissions; and (3) an energy efficiency label on products and services of companies that had reduced their carbon emissions through energy efficiency. 
1.1.1.5  Chinese Taipei's Product Carbon Footprint Labelling Programme 
1.54.  Dr Wei, Environmental Protection Admi nistration, Chinese Taipei, presented on their 
experience of the voluntary PCF labelling pr ogramme, launched in 2009 by the Environmental 
Protection Administration.  The programme, currently in its first of two stages, involved 
determining the carbon footprint of products, encouraging manufacturers to review and calculate their carbon footprint, and identifying critical fact ors for reducing emissions.  So far, 50 companies 
had participated voluntarily in the programme and had obtained carbon footprint labels for 
160 products, mainly beverages and food but also daily consumer goods and electronic products.  At the end of the first stage, methods and commi tments to reduce carbon emissions would be 
proposed, and carbon emission reduction labels would be issued during the second stage.  Once 
manufacturers achieved their carbon emission reduct ion goals, they would be eligible to apply for 
carbon emission reduction labels after verification by third-party inspection organisations.  The Environmental Protection Administration was involved in international cooperation with the Carbon 
Trust to work on mutual recognition of PCF labels and with the Asia Carbon Footprint Network to 
enhance information exchange and collaborate in the development of PCF rules. 
1.1.1.6  Korea's Carbon Footprint Labelling Scheme 
1.55.  Ms. Ji-hyae Noh, Associate Researcher, Korea Environmental Industry and Technology 
Institute (KEITI), Korea, presented on their voluntary carbon footprint labelling scheme, which 
consisted of a two-level certification structure.  First "carbon emissions" certification, launched in 2009, quantified the life-cycle GHG emissions of a selected product based on different system 
boundaries for specific types of products.  Second, "low-carbon product" certification, launched in 
2011, issued when products achieved their GHG reduction target based on average carbon emissions and national carbon reduction rates.  As of April 2013, 828 and 99 products, mainly 
non-durable products such as detergent, diaper s and food, and energy using products such as 
TV and mobile phone, had been certified, resp ectively, with a "carbon emissions" and a "low-
carbon product" certificate.  In order to allow interested companies with various products or 
modules on their products to save time and certification fees, in 2012 KEITI launched a 
certification system process whereby a company was given the authority and responsibility to calculate and verify the carbon emissions of its products for a three-year period.   WT/CTE/M/55 
 
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  1.1.1.7  Thailand's Product Carbon Footprint Project 
1.56.  Dr Pongvipa Lohsomboon, Director, Carbon Business Office, Thailand Greenhouse Gas 
Management Organisation (TGO), Thailand, shared their experience of the PCF project launched in 
2009 with the objectives of promoting the use of PCF and increasing the competitiveness of 
Thai industries.  Besides a life cycle inventory database, a national guideline on PCF calculation 
based on ISO 14040, ISO 14067 and PAS 2050, as well as 120 product category rules had been developed.  In order to obtain a carbon label, manufacturers had first to collect their activity data, 
calculate their emissions for third-party verificati on, and then register their data and application 
forms to TGO, which was in charge of validating the documents and registering the carbon footprint logo.  Manufacturers were also encouraged to explain how to use their products in order to reduce GHGs.  As of May 2013, 191 mostly medium-sized companies, followed by some large 
firms and a few small companies, certified 809 pr edominantly food products, such as rice and 
cooking oil, and textile products, such as shirts and ties.  According to surveys undertaken by TGO, these manufacturers listed corporate social responsibility programmes, hotspots 
identification along the supply chain, and expo rt competitiveness enhancement, as the main 
reasons in displaying a PCF label. 
1.1.1.8  Costa Rica's Ca rbon Neutrality Programme 
1.57.  The representative of Costa Rica shared information on the latest developments of the 
national voluntary carbon neutrality programme launched in 2012 and the establishment of 
requirements, methodologies and procedures to assess, verify and certify carbon neutral management processes of organisations.  In March 2012, the first seven companies, including 
multinational and small- and medium-sized firms, obtained carbon neutral certification. 
1.1.1.9  Switzerland's Green Economy Action Plan 1.58.  The representative of Switzerland inform ed that in 2013, the Swiss Federal Council had 
adopted a green economy action plan aimed at increasing information on the environmental 
impact of products, including transparency am ong private labelling schemes.  His delegation 
expressed interest in participating in the pilot phase of the EU initiative in order to improve the 
environmental impact assessment methodology in Switzerland. Switzerland supported the 
implementation of environmental schemes, including private labelling initiatives, and the elaboration of relevant international standards, as a way to increase sustainable trade. 
1.1.1.10  New Zealand's GHG Footprinting Strategy for the Land-based Primary Sectors 
1.59.  The representative of New Zealand provided an update on the GHG footprinting strategy for 
the primary sector, under which the Government, with minimal involvement, and the private 
sector, had undertaken life cycle assessment studies for a wide range of commodity products, 
covering more than 80% of New Zealand export s.  The life cycle assessment methodology was 
sufficiently sophisticated for comparing differences  in emissions per unit of production between 
neighbouring farms or enterprises, enabling those industries to target localised mitigation 
strategies.  More generally, the representative of New Zealand considered that life cycle 
assessments should remain focused on improving environmental performance across the supply chain and not rely on action at the consumer end through environmental labelling. Communication techniques required improvement before life cycle assessment information on product labels could 
make a contribution to consumer decision-making.  The importance of developing labelling 
schemes that were non-discriminatory against third country trading partners, and based on sound science and internationally agreed standards or benchmarks, was underscored. 
1.1.1.11  OECD's Work on Carbon F ootprinting Requirements and Labelling 
1.60.  The representative of the Organisation for Economic Co-operation and Development (OECD) 
presented an overview of the OECD's work on ca rbon footprinting requirements and labelling, 
including an on-going project on the trade-rela ted issues and proliferation of environmental 
labelling and information schemes.  Of the 544 envi ronmental labels identified by the on-going 
project, 174 schemes related directly or indirectly to carbon emissions, while only 36, introduced 
mainly since 2007, were PCF labelling schemes.   WT/CTE/M/55 
 
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  1.61.  The first main trade-related issue highlighte d in the OECD literature concerned the extent to 
which PCF labelling constituted a barrier to entry (trading cost).  Although empirical evidence demonstrated that many imported products had a lower footprint than their domestic counterpart, calculation and certification costs associated with the PCF could constitute a market access barrier 
for some producers, in particular small producers in developing countries.  The lack of international 
standards and the development of domestic PCF standards that could favour domestic producers were also viewed as a trade impediment.  Likewise, the treatment of GHG emissions associated 
with transportation in the calculation of the PCF could be problematic, underscoring the importance 
of an adequate infrastructure.   
1.62.  The second main trade-related issue referred to whether PCF labelling led to unfair 
competition by favouring some goods originating from a specific country (information quality).  
The literature highlighted the necessity to assess the PCF based on a life-cycle analysis from raw 
material to end product.  However, data methodologies could be biased towards domestic products and the aggregation method detrimental to foreign sources.  Empirical studies demonstrated that a 
product could display a smaller or larger carb on footprint depending on the PCF calculation 
methodology used, potentially creating additional confusion for the consumer.  It was unclear whether PCF labelling had a significant impact in the market, as different markets responded 
differently to green labels.  The literature also suggested that PCF labelling could have unintended 
effects such as consumers buying more green prod ucts than they would normally buy, which could 
be more polluting than consuming less quantities  of non-green products.  The representative of 
the OECD highlighted the importance of reaching an agreement on the consistency across different 
international PCF standards in order to address these two main-trade related issues: increasing 
information of the PCF labelling while reducing its trade cost. 
1.1.2  Second Part of Paragraph 32(i) on "S ectoral Analysis" ("win-win-win" situations) 
1.63.  As a follow-up to a delegation's request at the November 2012 meeting of the CTE, the 
representative of the Legal Office of the Food an d Agriculture Organization of the United Nations 
(FAO) referred to the 1995 FAO Code of Conduct for Responsible Fisheries (the "Code of 
Conduct"), a non-binding instrument establishing provisions on fisheries and aquaculture 
management and operations, including post-harvest and trade.  The Article of the Code of Conduct 
on "responsible trade" called on States in accordance with international trade law, to eliminate barriers to trade, develop international stan dards and agreements, and harmonize national 
legislation.  Further, the Code called on countries to ensure that measures affecting international 
trade were transparent and based on scientific evidence, and that trade in fish and fishery products would not compromise the responsible utilization of living aquatic resources.   
1.64.  The Code of Conduct had triggered negotiations on a number of subsidiary instruments, 
such as the FAO International Plan of Action to Prevent Deter and Eliminate Illegal, Unreported and Unregulated Fishing (IPOA-IUU) and the FAO Model Scheme on Port State Measures to Combat 
IUU Fishing (Model Scheme).  Besides defining  IUU fishing, the IPOA-IUU, adopted in 2001, 
introduced a number of best practices and principles aimed at combating IUU fishing that States and regional fisheries management organisations (RFMOs) were called to apply in a transparent and non-discriminatory manner.  Echoing the provisions of the Code of Conduct on trade-related 
measures, the IPOA-IUU should only be used in exceptional circumstances where other measures 
had proven unsuccessful and after prior consultation with affected States.  The IPOA-IUU also called on States to support training and capacity development for its implementation.  The 
FAO Model Scheme, endorsed in 2005, recommended international minimum standards for port 
State measures.   
1.65.  In response to a global call for a binding instrument, the FAO Committee on Fisheries 
(COFI) facilitated the adoption of the Agreement on Port State Measures to Prevent, Deter and 
Eliminate Illegal, Unreported and Unregulated Fishing (PSM Agreement) that had yet to enter into force.  The PSM Agreement would apply to all vessels, through port inspections of vessels allowed entry, while those found to carry out IUU fishing would be denied complete entry as well as 
transhipping, processing and packaging of catches.  Inspection reports and decisions to deny port 
entry or landing, would be transmitted to the vessel master, flag State, coastal State where appropriate, and relevant RFMO.  Flag States would be requested to take enforcement action and 
cooperate in implementing the Agreement.  Besides encouraging non-Parties to implement port 
State Measures, Parties to the Agreement would have to adopt fair, non-discriminatory and transparent measures consistent with the Agreement and with international law to deter the WT/CTE/M/55 
 
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  activities of non-Parties undermining the effectiveness of the PSM Agreement.  Parties would also 
have to assess disproportionate implementation burdens and assist developing states in their implementation of the Agreement.  FAO has already undertaken a range of technical assistance and capacity development activities to support the implementation of the IPOA-IUU and the Model 
Scheme on Port State Measures at the global, regional and national level.   
1.66.  The IPOA-IUU, the Model Scheme, and the PSM Agreement further encouraged and required 
countries to comply with and enforce conservation and management measures taken by RFMOs.  
Under the United Nations Convention on the Law of the Sea, States through RFMOs were 
mandated to jointly take measures to manage and conserve marine living resources, including measures crucial in addressing IUU fishing, such as the adoption of criteria establishing the listing of vessels engaged in IUU activities, port State measures, and implementation of catch and trade 
documentation rules.  States, not members of RF MOs, were further required to adopt equally 
effective measures in the conservation and management of living marine resources.   
1.67.  The representative of the Products, Tr ade and Marketing Service of the Fisheries and 
Aquaculture Department of the FAO advised that a paper identifying, compiling and analysing best 
practices and existing standards for a range of trac eability purposes, including food safety, quality 
assurance and IUU fishing was to be issued at the next session of the Sub-Committee on Fish 
Trade of the COFI in February 2014.  Based on the results of a strengths, weaknesses, 
opportunities and threats (SWOT) analysis identifying the gaps and inconsistencies in standards and regulations, the paper would develop risk-based traceability best practice guidelines incorporating the maintenance of the integrity of product-tracking, special consideration for 
developing countries, the prevention of unnecessary barriers to trade through the notion of 
equivalence, harmonization, proof of reliability, simplicity, clarity and transparency.  The paper would also include components of the FAO Eco-labelling Guidelines and the FAO Aquaculture 
Guidelines as adopted by its members, and look into catch and trade documentation schemes of 
RFMOs, as well as industry and NGO standards (e.g. Marine Stewardship Council).  Another focus of the report would be on market access of sm all scale fisheries and aquaculture producers in 
developing countries to major fish import markets, such as the EU, the United States and Japan.  
Finally,  options for technical assistance to de veloping countries would be reviewed. 
1.68.  The representative of New Zealand underscored the importance of concerted international 
efforts, such as those undertaken by FAO, to addre ss the problem of IUU fishing, noting that in the 
absence of coordination or harmonization in market measures addressing IUU fishing, importers 
and exporters would face multiple requirements  that could undermine the objective of these 
schemes.  It was therefore important that market  measures aimed at tackling IUU fishing met 
common criteria, such as in Article 11.2 of the FAO Code of Conduct and Technical Guidelines for 
Responsible Fish Trade, and be consistent with WTO rules.   
1.69.  Recognizing that a coordinated global effort was necessary to prevent, deter and eliminate 
IUU fishing, the representative of Canada expressed strong support for multilateral measures, 
including those developed by the FAO, aimed at strengthening global fisheries and governance, 
and promoting the level playing field for fish an d fisheries products through the development of 
global guidance on traceability.  Canada had issued a national plan of action on IUU fishing in 
March 2005, and signed the Port State Measures Agreement in November 2010.   
1.70.  The representative of Australia informed that Australia was actively engaged in a range of 
international and regional organisations to improve global fisheries management, including the 
combat of IUU fishing, which, as a sovereignty and security issue, remained a major obstacle in 
achieving sustainable fisheries and food security.  Aerial and sea surveillance, as well as programs 
to control IUU activities within Australian waters, were regularly undertaken and enforced.  
Increased efforts were further needed to coordina te monitoring, control and surveillance networks 
aimed at deterring and eliminating IUU fishing,  including through the activities of RFMOs. 
1.71.  The representative of the European Union re iterated EU support to the current activities of 
the FAO regarding IUU fishing and advocated for more actions in the future. 
1.72.  The representative of Mexico supported the statement of New Zealand and underscored the 
importance of refraining from adopting unilateral measures and joining efforts made in 
international fora to analyse and define IUU fishing.   WT/CTE/M/55 
 
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  1.2  Paragraph 32(ii) on TRIPS 
"The relevant provisions of the Agreement on Trade-Related Aspects of Intellectual 
Property Rights." 
1.73.  No statements from delegations were made under this agenda item.  
1.3  Paragraph 32(iii) on Labelling 
"Labelling for Environmental Purposes" 
1.74.  No statements from delegations were made under this agenda item.  
2  OTHER ITEMS ON THE CTE AGENDA 
2.1  Item 3(a): "The relationship between the provisions of the multilateral trading 
system and charges and taxes for environmental purposes." 
2.1.  The representative of Australia presente d the Clean Energy Future Package, an economy-
wide carbon pricing mechanism designed to reduce Australia's carbon emissions in line with 
international commitments and their own long-term targets of 5% and 80% GHG emission reductions by 2020 and 2050, respectively, compared to 2000 emission levels.  The coverage of 
the carbon pricing mechanism was broad, encompa ssing the stationary energy sector, industrial 
processes, future landfill waste, and fugitive so urces.  Companies in the covered sectors had to 
purchase carbon units equivalent to their annual emissions and surrender them to the 
Government.  While 66% of domestic emissions in Australia were covered by the carbon price, 
liability affected only a very small number of Australian businesses (i.e. 500 companies out of the 2 million businesses registered in Australia).  In its design, the scheme provided for assistance arrangements to certain sectors more affected, while maintaining the incentive to reduce carbon 
emissions.  Since its entry into force in July 2012, the Australian economy had started 
transitioning away from carbon pollution, with a 7.4% drop in carbon emissions representing 
11 million tonnes carbon.   
2.2.  The implementation of the carbon pricing mechanism followed a staged approach.  Until mid-
2015, the carbon price would be fixed, starting at AUD 23 per tonne,
5 and rising with inflation over 
the next two years.  From 1 July 2015 onwards, the Australian Government would establish an 
emission trading scheme (ETS) by setting a cap on annual GHG emissions from carbon sectors and 
letting the market set the price of carbon.  No later than 1 July 2018, the Australian ETS would be linked with the EU ETS through the mutual recognit ion of carbon units, allowing the use of carbon 
units from both trading schemes for compliance under either system.  Australian businesses would 
then be able to acquire the carbon units needed from a combination of domestic and international 
sources or from carbon offset programs, such as carbon farming initiative projects with offset units representing a one-time reduction or sequestration of carbon dioxide equivalent emissions from a 
carbon farming initiative project.  A temporary arrangement to be put in place from 1 July 2015 
onwards would also allow Australian businesses to secure up to 50% of their carbon units from eligible international links, such as those from the EU ETS to help meet their liabilities under the 
Australian scheme.  Linking credible trading sch emes together was expected to provide a number 
of benefits, including the development of global carbon markets with an internationally uniform 
carbon price, broader participation and lower likelihood of price distortion;  decreased costs of reducing emissions;  and lower transaction costs by allowing businesses to hedge risk and manage 
their carbon exposure.  Future bilateral links with other credible international trading schemes 
would be considered on a case-by-case basis.  
2.3.  The representative of the Kingdom of Saudi Arabia was of the view that carbon pricing could 
be used as a disguised restriction on trade inconsistent with WTO rules, imposing burdens and 
costly requirements for developing countries.  Such an important issue should be discussed within the UNFCCC and not in the WTO.   
                                               
5 US$ 23 per tonne. WT/CTE/M/55 
 
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  2.2  Item 4: "The provisions of the multilateral trading system with respect to the 
transparency of trade measures used for environmental purposes and environmental measures and requirements which have significant trade effects." 
2.4.  The representative of the WTO Secretar iat presented the WTO Environmental Database 
(EDB) for 2010, compiling information on environment-related measures notified under 
WTO Agreements, environment-related provisions of notified regional trade agreements, and 
environmental measures mentioned in trade policy reviews (TPRs).6  Since 2012, the EDB was 
circulated in two parts: (1) a report containing a description and analysis of the types of measures, 
environmental objectives and products or sectors being notified or mentioned in the TPRs; and (2) an electronic document providing the compiled information on notifications and TPRs.  The electronic EDB enabled users to search easily through all EDB environment-related information 
found in notifications and TPRs according to specific harmonized criteria, for instance by Member, 
Agreement, type of measure, product, or environmental objective.  In addition, users were able to retrieve pre-defined summary statistics and graphs displaying the main trends.  
2.5.  The representatives of Canada and Australia noted the importance of the timely circulation of 
EDB documents.   
2.6.  The representative of the WTO Secretariat informed that the EDBs for 2011 and 2012 would 
be released in the course of 2013. 2.7.  The representative of the Bolivarian Repu blic of Venezuela enquired on the source of 
information contained in the TPR section of the EDB and the criteria used to select the different 
categories. 
2.8.  The representative of the WTO Secretariat explained that the environment-related 
information was taken from TPR documents prepared by both government and the Secretariat.  
The actual compilation of the information was undertaken by using a set of keywords agreed by 
the CTE in 1999.7   
3  PARAGRAPH 33 OF THE DOHA MINISTERIAL DECLARATION 3.1.  No statements from delegations were made under this agenda item. 
4  PARAGRAPH 51 OF THE DOHA MINISTERIAL DECLARATION 
4.1.  No statements from delegations were made under this agenda item. 5  OTHER BUSINESS 5.1.  The representative of the Convention on In ternational Trade in Endangered Species of Wild 
Fauna and Flora (CITES) updated Members on the 16th meeting of the Conference of the Parties 
(COP) held in March 2013.  Besides the inclusion of a number of commercially valuable timber and 
marine species in Appendix II of CITES, authorizing their trade as long as governments certified 
that such trade was legal, sustainable and traceable, Parties adopted or revised resolutions on four 
key themes: (1) a uniform interpretation and impl ementation of the sustainability requirements 
underpinning CITES trade;  (2) trade in marine species taken from the high seas; (3) the 
relationship between CITES and peoples livelihoods; and (4) mechanisms and tools to facilitate 
legal trade as well as detect and address illegal trade in wild animals and plants. 
5.2.  The representative of the United Nation s Conference on Trade and Development (UNCTAD) 
referred to an ad hoc  expert group meeting "Domestic Requ irements and Support Measures in 
Green Sectors: Economic and Environmental Effectiveness and Implications for Trade" to be held 
in June 2013.  The meeting would preview the main findings of various studies carried out by various organisations, including the Organization  of American States, OECD, and World Bank.  A 
number of questions related to performance requir ements would also be addressed, such as the 
short- and long-term returns of local content strategies,  the specific case of renewables, and the 
                                               
6 Documents WT/CTE/EDB/10 and WT/CTE/EDB/10/Add.1 were circulated on 15 April 2013. 
7 See WT/CTE/W/102. WT/CTE/M/55 
 
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  potential upsides for developing countries. No conclusions and recommendations were foreseen 
following the discussions.    
5.3.  The representative of the Secretariat of the Basel, Rotterdam and Stockholm Conventions 
(BRS) provided a briefing on the first simultaneo us and back-to-back ordinary and extraordinary 
meetings of the COP held in April and May 2013,  and resulting in the adoption of 50 separate 
decisions, including the Geneva Statement on the Sound Management of Chemicals and Waste.  Parties had decided to strengthen compliance with the Basel Convention on the Control of 
Transboundary Movements of Hazardous Wastes and their Disposal with the adoption of a 
framework for the environmentally sound management (ESM) of hazardous wastes and other wastes, the development, within the next two ye ars, of technical guidelines on transboundary 
movements of electronic and electrical wastes, and the definition of the terms of reference for the 
newly established Environmental Network for Optimising Regulatory Compliance on Illegal Traffic 
(ENFORCE).  Parties also agreed to include an additional chemical in the Annex A of the Stockholm Convention on Persistent Organic Pollutants, while efforts undertaken to adopt non-compliance 
procedures and mechanisms would be reconsidered at the next COP.  While the issue of chrysotile 
asbestos would be reconsidered at the next COP, Parties decided to add one pesticide and three industrial chemicals to Annex III of the Rotterdam Convention on the Prior Informed Consent 
Procedure for Certain Hazardous Chemicals and Pesticides in International Trade.   
5.4.  The extraordinary meetings of the COPs fo cused on matters related to synergies amongst the 
three Conventions with the adoption of an Omnibu s Decision and the review of the impact of the 
arrangements put into place by Parties in this regard.  The new organization, with one single 
Secretariat for all three Conventions was endorsed .  Programmes of work and budgets for both 
convention-specific as well as joint activities we re adopted.  In particular, the strengthening of 
capacity building and technical assistance activities were agreed upon, by investing the savings 
realised over the past biennium into an enhanced technical assistance programme.  The 
Secretariat of the BRS Conventions were requested to continue monitoring the work of the CTE, 
whilst some Parties had called upon more trad e and environment-related activities between the 
WTO and BRS Conventions, in line with previous decisions adopted on co-operation with the WTO.  
Parties had also expressed interest to coordinate and cooperate with the Minamata Convention on Mercury.  The next back-to-back ordinary meetin gs of the three BRS COPs were planned for 2015, 
without extraordinary meetings or Ministerial segments.   
5.5.  The representative of UNEP referred to a recently published report entitled "Green Economy 
and Trade – Trends, Challenges and Opportunities", exploring triple-win situations for trade, the 
environment and development in agriculture, fish eries, forestry, manufacturing, renewable energy 
and tourism.  Although sustainable trade at presen t constituted only a small proportion of global 
trade volumes, the report demonstrated that developing countries had significant gains to make from mainstreaming sustainability considerations in their trade-driven growth strategies through 
trade facilitation in environmental goods and services, implementation of sustainability standards 
and greening global value chains.  The need to help countries establish the necessary enabling conditions to both harness existing and new opportunities associated with the transition to a green economy through enhanced technical assistance, international dialogue and capacity building, was 
highlighted.  UNEP’s Green Economy Advisory Services would assist developing countries by 
conducting pilot studies aimed at identifying key opportunities in selected products and services, as well as elaborating policy options, and creating indicators and measurement frameworks.   
 
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