INF/TE/SSD/R/4  
 
3 November 2021 
(21-8358) Page: 1/10 
Trade and Environmental Sustainability Structured 
Discussions  Original : English  
 
WTO TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS  
MEETING HELD ON 16 AND 17 SEPTEMBER  2021 
Informal s ummary by the Coordinators1 
The fourth plenary meeting of the Trade and Environmental Sustainability Structured Discussions 
(TESSD) was held on 16 -17 September 2021. The meeting was chaired by the TESSD Coordinators 
(Canada  and Costa Rica ). The agenda for the meeting was contained in  document INF/TE/SSD/CN/4. 
In keeping with TESSD's open, transparent and inclusive approach, all WTO  Members had been 
invited to attend the meeting.  
1  INTRODUCTORY REMARKS BY THE COORDINATORS  
1.1.  In his introductory remarks, Ambassador Stephen de Boer of Canada  highlighted TESSD 's role 
as a discussion forum and incubator of ideas. He recalled that the purpose of the meeting was  to 
hear: (i) the views and perspectives of stakeholders in thematic sessions on topics of interest to 
Members ; (ii) Members' feedback on the revised draft elements paper for a TESSD Ministerial 
Statement  contained in document INF/TE/SSD/W/14/Rev.1 ; and (iii) updates from Members on 
ongoing discussions  in areas related to TESSD . He noted that work on a draft TESSD Ministerial 
Statement was well under way. He encouraged Members to show sufficient flexibility and 
collaborative spirit in working towards an inclusive Ministerial Statement which  could attract more 
co-sponsors and signal  Members' continued commitment as well as WTO's im portant role with regard 
to trade and environment.  
2  THEMATIC SESSIONS  
2.1.  The meeting comprised thematic discussions on: (i) sustainable food and agriculture; 
(ii) trade-related climate measures; and (iii) promoting trade in environmental goods and 
services  – perspectives from developing countries. The final programme and a short summary of the 
thematic sessions are contained in Annex es I and II of this document, respectively.  The three 
thematic sessions stimulated rich discussions among Members, including on possible elements for a 
TESSD Ministerial Statement.  
2.1  Sustainable food and agriculture  
2.2.  Presentations  from Members and stakeholders on the topic of sustainable food and agriculture  
were welcomed . Members recognized that agriculture and food systems play ed a key role in 
responding to global climate challenges, and that promoting low -emission practises could contribute 
to limiting global warming below the 1.5 -degree Celsius threshold as well as achieving S ustainable 
Development Goal (SDG)  2 (Zero Hunger).  It was considered  importan t to advanc e work on 
sustainable agriculture in an inclusive manner, recognizing the varying needs and points of origins 
of Members.  
2.3.  Certain Members stated that methods to promote sustainable agriculture should be based on 
robust e vidence while addressing  trade distortions and the effects that subsidies could have on the 
 
1 This summary, prepared and circulated under the Coordinators' responsibility, is being shared with a 
view to providing delegations with a record of the discussions and assisting them in reporting back to their 
capitals. It provides a non -exhaustive, illus trative review of the issues addressed by Members at the meeting.  INF/TE/SSD/R/4  
 
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  environment. Other  Members noted that discussions on sustainable agriculture could potentially 
overlap with ongoing work in the Committee on Agriculture or the SPS Committee, expressing 
concern that TESSD was not the appropriate forum for such discussions.  
2.4.  Several Members highlighted the importance of finding an appropriate balance between 
economic, social and environmental considerations regarding trade and sustain able agriculture. In 
particular, certain Members highlighted that natural advantages and growing conditions could lead 
to lower emissions and contribut e to improv e economic conditions for rural workers.   
2.5.  Certain  Members highlighted individual efforts to promote sustainable food and agriculture 
systems, such as the use of voluntary sustainability . These Members also highlighted the importance 
of international standards for sustainable production processes and that  further discussion on these 
should take place within the WTO.   
2.2  Trade -related climate measures  
2.6.  Members welcomed the presentations from stakeholders and recognized the role that trade 
tools c ould play in transitioning towards a lower carbon economy and addressing  climate change. 
Members reiterated that trade and climate policies should be mutually supportive, and that 
discussions on this topic within TESSD present ed an opportunity for Members to demonstrate 
leadership and continued mutual engagement in addre ssing critical global objectives.  
2.7.  Certain Members discussed the impacts of Border Carbon Adjustments (BCAs). A number of 
Members highlighted that their economies were particularly vulnerable to such measures and 
indicated that the methodology used to calc ulate carbon content was a critical issue that should be 
discussed in the WTO. Other Members suggested that BCAs should include safeguards for developing 
countries and  LDCs, as certain climate -related trade measures could stall development efforts and 
had important  impacts on revenue streams, especially for countries dependent on fossil fuel exports. 
Certain Members suggested that future discussions on environmental commitments should be based 
on concepts enshrined in the United Nations Framework Convention  on Climate Change ( UNFCCC ), 
such as Common but Differentiated Responsibilities and Respective Capacities (CBDR -RC) or the 
Nationally Determined Contributions (NDCs).  
2.8.   Further, certain Members stated that BCAs could be considered trade restrictive, and that the 
legal basis and compatibility of BCAs could conflict with WTO agreements. In addition, these 
Members judged that BCAs could have negative social, economic, and e nvironmental spillovers, and 
should be designed based on sufficient discussions in relevant international fora.  On the other hand, 
certain Members stated that measures aimed at addressing  carbon leakage should be a central focus 
of the Structured Discussio ns, as carbon leakage would undermine national efforts to decarbonize 
their economies. It was pointed out that BCAs were designed to not distort competition  and to  not 
lead to unnecessary regulatory  costs or trade barriers.  
2.9.  A number of Members highlighted  the importance of financ ial support  in achieving the 
environmental transition and in responding to risks of increased poverty during  such transition. 
Other Members indicated that key priorities of the upcoming Conference of the Parties (COP26) 
would  be ac cess to climate finance and ensuring that the needs of developing countries w ould be  
met.  
2.3  Promoting trade in environmental goods  and services  – perspectives from developing 
countries  
2.10.  Members underlined the importance of discuss ing the promotion of trade in environmental 
goods and services ( EGS) from the perspective of developing countries. It was emphasized that all 
countries should have access to goods, services, and technologies to contribute to the fight against 
climate change.  
2.11.  A number of Members encouraged participation and ownership of the TESSD process by 
developing countries and LDCs. These Members said that facilitating the dissemination of EGS 
through trade could allow for accelerated introduction of advanced technologies i n developing 
countries, which would reduce the burden on both the economy and the environment. In addition, 
certain Members stated that the promotion of EGS could also contribute to developmental objectives.  INF/TE/SSD/R/4  
 
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  2.12.  Several Members encouraged ambitious work in pro moting and liberalizing trade in EGS, 
which  could respond to the challenges posed by climate change and prove integral to the 
sustainability of global supply chains. Certain Members also stated that increased trade in EGS was 
needed to support developmenta l efforts regarding, among others, renewable energy, sanitation, 
waste management, or water availability.  
2.13.   Certain Members suggested that discussions on EGS should go beyond ad dressing tariff 
issues and also consider non -tariff barriers. These Members ind icated that trade barriers should not 
affect the ability of Members to reduce their carbon footprint, and exemplified experiences from 
increased market access in ad dressing topics such as the circular economy.  
2.14.  A number of Members recalled previous work an d engagement on the topic of EGS, including 
negotiations on an  Environmental Goods Agreement (EGA), which had sought to build on APEC's 
successful work on environmental goods. While it was  recognized that EGA discussions had stalled 
at the time due to dive rging views, liberalizing EGS was considered to be able to make an important  
contribution to addressing climate change. Other Members highlighted previous discussions and 
documents circulated within TESSD on the elimination of tariffs on environmental good s as well as 
rule-making on regulatory issues, and capacity building for developing countries.  
2.15.  Certain Members suggested that, as a first step there was a need to contemplate the interests 
of developed and developing countries regarding the criteria for e nvironmental  goods to ensure that 
the needs and interests of all WTO Members were understood. In addition, these Members 
encouraged TESSD participants to allow discussions on EGS liberalization to take place in the 
appropriate WTO bodies .  
2.16.  Certain Members also highlighted the importance of technical assistance  and capacity 
building , technology transfer  as well as basing technical standards on recognized international 
standards  for developing countries and LDCs to take action to limit environmental c hallenges.  
3  UPDATE ON TESSD DRAFT MINISTERIAL STATEMENT  
3.1.  In advance of the meeting on 3 September, the TESSD Coordinators had circulated a revised 
document on Draft Elements for a TESSD Ministerial Statement (INF/TE/SSD/W/14/Rev.1) reflecting  
comments and fe edback provided by Members . The goal of the Ministerial Statement would be to 
reaffirm the need for WTO action on environmental sustainability and to define a work programme 
for the post -MC12 period.  
3.2.  Members broadly commended the Coordinators for their wo rk in revising the draft elements 
paper and taking into account the varying positions and interest s of Members. The draft was 
considered a good basis for further discussions towards a Ministerial Statement that could attract 
broad support by Members.  Members also welcomed the inclusive approach , taking  into account the 
concerns and needs of developing countries  to facilitate their  further e ngage ment in the TESSD 
process.  
3.3.  Several Members  underscored  the importance of reflecting future work on environmental goods 
and services (EGS) in a TESSD Ministerial Statement  as EGS had a significant role to play in 
rendering trade more sustainable. A  number of Members called for more ambition and a separate 
paragraph on EGS to initiate discussions on a framework  or modalities  for future  negotiations. A 
Member indicated that a two -stage approach could be taken . In the first stage, a broad membership 
could discuss a framework for negotiations, so that by MC13 participants could be in a position to 
decide whether to join a second phase of negotiations.   
3.4.  To facilitate the inclusion of EGS in the Statement, several Members suggested that the level 
of ambition should be limited to facilitating trade in EGS. Other Members said that no specific 
intended outcomes on EGS should be indicated through the Statement . Certain Members indicated 
that, prior to discussions on facilitating EGS trade, deeper discussions would be needed on what 
goods or services could be defined as environmental, as these would have significant impacts on 
domestic policies.  
3.5.  Several Members highlighted the importance of involving developing countries in the process 
of discussions on EGS, taking into account their needs and interests. Certain Members said that a  
broader approach should  be taken,  going beyond tariff liberalization and address ing non-tariff INF/TE/SSD/R/4  
 
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  barriers and supply chain issues. Certain other Members indicated that future work on EGS should 
include work on facilitating technology transfers, particularly for developing countries.  
3.6.  Several developing and developed Members  highlighted the importance of maintaining a 
reference to the Paris Agreement in the Ministerial Statement. Members stated that such a reference 
would contribute to highlight  the importance of environmental and climate objec tives including 
limiting global warming to 1.5 degrees Celsius. However, certain Members indicated that any 
references to the Paris Agreement should limit duplication of efforts in other fora an d not entail a 
discussion of national efforts or NDCs  to limit ing global warming.  
3.7.  Certain Members stated that the Ministerial Statement should include a reference to  the 
importance of  environmental sustainability in the WTO reform agenda . These Members indicated 
that such a reference could mainstream environment and climate -related work under  way, as well 
as provide an opportunity , including  through work in TESSD, to align the multilateral trading system 
with modern environmental and climate objectives. In contrast, o ther Members cautioned that 
referen ces to the WTO reform agenda could hamper broader participation in the TESSD initiative.  
3.8.  A number of  Members welcomed the inclusion of a reference to sustainable agriculture in the 
draft elements paper . These Members highlighted that sustainable agricultu re, which balanced  
economic, social, and environmental aspects of agriculture, could play a significant role in fostering 
sustainable trade for developing countries dependen t on the sector. Other Members indicated that 
sustainable food systems were critica l in addressing challenges posed by climate change.   
3.9.  The Coordinators encouraged Members to be pragmatic and realistic considering the short time 
remaining until MC12 and recognize that the current draft Ministerial Statement reflected a middle 
point in te rms of Members' positions.  Going forward, the  Coordinators would hold consultations to 
develop a more stable text for the next TESSD meeting.  
4  OTHER UPDATES  
4.1  Fossil fuel subsidy reform  
4.1.  A Member provided an update on efforts to deliver a joint Ministerial Statement on fossil fuel 
subsidy reform. A revised version of the draft Statement, contained in document JOB/GC/264/Rev.1, 
had been circulated on 16 September 2021. The need to reform inefficient fossil fuel subsidies was 
highlighted, as well as that such reforms would release government funds to address a green and 
resilient economic recovery following the Covid -19 pandemic. Despite commitments in other 
international fora, such as the UN 2030 Agenda , APEC, the G20, the G7, and the Vulnerable 20, 
aspirations had not yet been translated into actions. Effective and long -lasting reform should take 
place in a multilateral setting and collaboration of a wide WTO membership to address these 
challe nges would be desirable .  
4.2  Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics 
Trade (IDP)  
4.2.  A Member provided an update on the status of discussions in the IDP, highlighting the 
importance of coordinated action among Members to a ddress the negative externalities of plastics. 
It was noted that 5% of global trade concerned plastics, and that trade and trade policy had an 
important role to play in addressing this challenge.  Members' participation in the work towards an 
IDP Ministeria l Statement for MC12  was welcomed, including with regard to suggestions for possible  
next steps and deliverables to address plastic pollution within the mandate of the WTO. Certain 
Members welcomed the update o n the IDP and supported the objective of delivering tangible results.  
4.3  Environmental goods and services  
4.3.  A Member provided an update on discussions among a group of Members on the possibility of 
having a separate Ministerial Statement on EGS at MC12 . These Me mbers, among other things, were 
continuing to reflect if a separate statement should be made or if emphasis on EGS should remain 
within the purview of a TESSD Ministerial Statement. Certain Members expressed preference for the 
TESSD statement to be the mai n vehicle for future work on EGS, noting that a  parallel approach 
could be ineffective.   INF/TE/SSD/R/4  
 
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  5  CONCLUDING REMARKS BY THE COORDINATORS   
5.1.  Ambassador Gloria Abraham Peralta of Costa Rica thanked stakeholders and Members for 
providing important perspectives regarding  the advancement of work in the three policy areas 
covered by the thematic sessions  as well as updates on ongoing discussions . She expressed  
appreciation for Members' continued openness and progress in discussions towards  a TESSD  
Ministerial Statement on trade and environmental sustainability , which could contribute to  TESSD's 
overall objective of having trade help achieve the Sustainable Development Goals. She called on 
Members to continue their constructive dialogue as they were on the right  path toward s achieving  
an inclusive and comprehensive Ministerial  Statement . 
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  ANNEX I  
 
PROGRAMME OF SESSIONS HELD ON 16 AND 17 SEPTEMBER  2021 
 
 
16 SEPTEMBER  2021  
Welcome from Ambassador Stephen de Boer  (Canada ), TESSD Co-Coordinator  
 
THEMATIC SESSION 1: SUSTAINABLE FOOD AND  AGRICULTURE  
16 September 2021 – 15:05 to 16:30 
 
The session provides an opportunity to review trade -related topics that arise in discussions on 
sustainable and equitable markets for food and agriculture. Speakers wi ll address trade policy 
opportunities and challenges related to sustainable agriculture in the wider context of sustainable 
development priorities, including food security, sustainable food systems, climate change and the 
protection, sustainable use and re storation of biodiversity.  
Moderator : Representative from the United Kingdom  
15:05-15:45: Presentations by:  
 
• Javier Vásquez, Under -Secretary , Ministry of Production and Foreign Trade, Ecuador  
 
• Sofía Jou, Agro-Environmental Management Coordinator , Ministry  of Agriculture and 
Livestock, Paraguay  
 
• Rafael Mafra, Agricultural Attaché, Mission of Brazil to the WTO, Brazil  
 
• Carin Smaller, Director, Agriculture, Trade & Investment, International Institute for 
Sustainable Development  
 
• George Rapsomanikis, Senior Economist, Trade and Markets Division, Food and Agriculture 
Organization of the United Nations (FAO)  
 
• Fatma Ben Rejeb , CEO, Pan Africa n Farmers'  Organization  
 
15:45-16:30: Open discussion (other WTO Members and stakeholders)  
 
THEMATIC SESSION 2: TRADE -RELATED CLIMATE MEASURES  
16 September 2021  – 16:35 to 18:00 
 
The session provides an opportunity to deepen understanding of the intersection between climate 
and trade policie s. Speakers will focus on the rationale a nd scope of trade -related climate measures, 
their implementation, implications for developing countries and the role of collaboration in the WTO 
to ensure mutual supportiveness and coherence between trade and climate regimes.  
Moderator : Representative from  Canada  
16:35 -17:05 : Presentations by:  
• Daniel Ramos, Trade and Environment Division, WTO 
 
• Andrei Marcu , Founder and Executive Director, European Roundtable on Climate Change and 
Sustainable Transition (ERCST)  
 
• Ann-Kathrin Zotz, GreenToCompete Associate Programme Manager , Sustainable and 
Inclusive Value Chains Section, International Trade Centre ( ITC) 
 
17:05 -18:00 : Open discussion (WTO Members and stakeholders)  INF/TE/SSD/R/4  
 
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  17 SEPTEMBER 2021  
THEMATIC SESSION 3: PROMOTING TRADE IN ENVIRONMENTAL  GOODS AND SERVICES – 
PERSPECTIVES FROM DEVELOPING COUNTRIES  
17 September 2021 – 10:00 to 11:00 
 
The session provides an opportunity to consider issues related to promoting and facilitating trade in 
environmental goods and services, with a focus on the opportunities and challenges for developing 
countries.  
Moderator : Representative from the Maldives  
10:05-10:35: Presentations by:  
• David Vivas, Legal Officer, UNCTAD  
 
• Rajiv Garg, Africa and West & Central Asia Region Manager, Climate Technology Centre & 
Network  (CTCN)  
 
• Collin Zhuawu, Economic Adviser (Multilateral Trade), Trade, Oceans, and Natural Resources 
Directorate, Commonwealth Secretariat  
 
10:35 -11:00 : Open discu ssion (WTO Members and stakeholders)  
 
11:00 -13:00  TESSD meeting continued (see draft agenda in INF/TE/SSD/CN/4)  
 
 
CLOSING SESSION  
Remarks by Ambassador Gloria Abraham Peralta  (Costa Rica ), TESSD Co-Coordinator.  
 
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  ANNEX II  
 
SUMMARY OF  THEMATIC  SESSIONS  
1  SESSION 1 : SUSTAINABLE FOOD AND AGRICULTURE  
1.1.  Speakers noted that sustainable food and agriculture covered the economic, social, and 
environmental dimensions of sustainability. Certain speakers referred to the Food and Agriculture 
Organization of the United Nations' (FAO) definition of sustainable agriculture, notably "the 
management and conservation of the natural  resource base, and the orientation of technological 
change in such a manner as to ensure the attainment of continued satisfaction of human needs for 
present and future generations". It was highlighted that addressing the trade -offs between food 
security a nd climate challenges were difficult to overcome, particularly as climate change would 
reduce crop yields for developing countries and LDCs. While the positive role of trade in agricultural 
products for promoting economic growth as well as technology and k nowledge spillovers was 
acknowledged, concern was also expressed that trade liberalization would primarily benefit the top 
20% richest households, exacerbating pre -existing inequalities.  
1.2.  Speakers highlighted the challenges faced by the agricultural sector,  particularly in developing 
countries where it represented a majority of exports and employment opportunity for rural residents. 
As such, speakers reiterated that international trade and the promotion of sustainable food and 
agriculture should take into ac count not only environmental aspects such as the protection of 
biodiversity and reducing carbon emissions, but also contribute to elevating the living standards and 
conditions for rural workers. In addition, certain speakers highlighted the importance of t aking a 
holistic approach to agricultural supply chain which could link smallholder farmers to global markets.  
1.3.  Speakers presented ongoing actions at the national and international levels to support 
sustainable agriculture , including efforts to promote the  inclusion of sustainable agriculture in free 
trade agreements as well as the ratification of international conventions to protecting resources and 
biodiversity. Other efforts presented included the creation of sustainability standards for agricultural 
products and obtaining recognition of international organic standards by the International Federation 
of Organic Agriculture Movements  (IFOAM) . Certain speakers encouraged labelling practices, which 
could strengthen environmental outcomes, in particular when farmers were organized through 
cooperatives.  
1.4.  Speakers discussed measures that could be taken to reduce carbon emissions. It was 
recognized that carbon taxation could be an effective tool for internalizing the cost of greenhouse 
gas emissions. However, the  use of such measures should be introduced carefully, as it could lead 
to carbon leakage and the importation of cheaper, more emission -intensive goods. Given the 
complexity of measuring the carbon content of food, a speaker discussed the validity of using 
labelling as a tool to ensure the treatment of like products in a non -discriminatory way.  
1.5.  Speakers discussed how tools to promote sustainable agriculture could be applied to avoid 
possible negative trade effects, pointing to the importance of basing technical requirements on 
international standards and standards harmonization, providing adequat e adaptation periods for 
developing countries, expanding organic product certification bodies, promoting multilateral 
regulations to facilitate trade, and facilitating market access.  
1.6.  Several speakers discussed the impacts that subsidies could have on sust ainable agriculture. 
Notably, speakers highlighted that, according to the International Food Policy Research Institute 
(IFPRI ), USD 600 billion in agricultural subsidies were provided, with US D 480 billion in OECD 
countries alone. Certain speakers pointed to the impact and possible distortions caused by 
environmentally harmful subsidies with regard to  trade. Similarly, speakers discussed the impacts 
that support could have on production choices in areas where agriculture was less environmentally 
viable  and with lower climatic competitive advantages, as compared to regions where multiple 
annual harvests would be possible . According to certain speakers, agricultural production 
encouraged through subsidies or if artificially grown should not be considered as su stainable . 
Reducing subsidies would foster production in  areas with greater climatic aptitudes  and lead to fairer 
global markets for agricultural goods.  INF/TE/SSD/R/4  
 
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  2  SESSION 2: TRADE -RELATED CLIMATE MEASURES  
2.1.  Speakers highlighted the growing momentum around the world to wards net -zero emissions 
commitments and the adoption of private -sector and domestic level instruments against carbon 
emissions.  It was noted that border carbon adjustments (BCAs) were one possible instrument to 
avoid carbon leakage.  
2.2.  Speakers exemplified the growing momentum around climate commitments through the 
growing number of climate -related notifications in the WTO's Environmental Database. Since 2009, 
4,355 climate -related measures had been notified to the WTO , the majority of which concerned 
technical regulations or specifications. It was noted that  the adequate implementation of climate 
change -related policies could  enable WTO Members to mobilize investment in clean technologies, 
thereby facilitat ing economic diversification and hel p create new business and employment . 
Speakers highlighted the importance of transparency in fostering informed decision -making  and 
international cooperation  with regard to trade -related climate policy . 
2.3.  Speakers noted that due limited expertise and financi al capacity, MSMEs in developing 
countries often lacked data and  information to measure their energy consumption and carbon 
emissions. This lack of  information on the energy consumption  would hinder MSME's ability to 
effectively reduce their emissions and comply with carbon content requirements . Speakers said that 
support should be provided to  policymakers to allow them to make informed decisions, to business 
support organizations such as chambers of commerce w hich could  act as bridge -makers, and to 
MSMEs t o overcome these challenges. Support to business support organizations to include 
decarbonisation into their services portfolio was considered particularly important as this could have 
a multiplying effect in helping MSMEs to decarbonise.  
2.4.  Speakers also ref erred to carbon standards as one appropriate incentive to drive 
decarbonization, particularly of the private sector. They explained that carbon standards for large 
corporations usually had positive spillovers and encouraged MSMEs to decarbonize to ensure t hat 
they could participate in international supply chains.  
2.5.  Speakers said that BCAs, which could take many different forms, could address carbon leakage 
but also gave rise to challenges related to competitiveness and trade, including the divergence of 
stand ards, methodology, and developing countries' capacity to respond to such measures. 
Challenges and impacts relating to the European Union's proposed Carbon Border Adjustment 
Mechanism  (CBAM)  were discussed. It was suggested that the WTO, and TESSD in partic ular, were 
well-placed to host discussions on principles and best practices relat ing to BCAs.  
3  SESSION 3: PROMOTING TRADE IN ENVIRONMENTAL GOODS AND SERVICES – 
PERSPECTIVES FROM DEVELOPING COUNTRIES  
3.1.  Speakers recalled the rationale for trade opening in EGS, noting that international trade played 
a key role in reducing costs, spurring innovation, facilitating investment and accelerating the 
deployment of environmental technologies across borders, including the key technologies needed to 
achieve the goals of the Paris Agreement and the SDGs. This rationale had underpinned negotiations 
on an Environmental Goods Agreement  (EGA) , which had sought to build on APEC's successful work 
on environmental goods. It was noted that previous discussions had focused exclusiv ely on 
environmental goods, and not on environmental services. In addition, discussions had only discussed 
tariff liberalization and not non-tariff barrier s. 
3.2.  Speakers noted that developing countries had not been active participants in p ast EGA 
negotiations , as there  had been a perception of limited potential benefits since  trade in 
environmental goods had been  heavily skewed towards developed countries. However, given the 
evolving political priorities , increased focus on climate change, as well as changing trade patterns in  
EGS trade, the contribution and liberalization of trade in EGS could become increasingly relevant  to 
developing countries .  
3.3.  Speakers recalled some of the technical challenges arising in the context of EGS trade , including 
the absence of a n internationally agreed definition of EGS, the broad nature of descriptions in the 
Harmonized System which were not always sufficiently specific to identify and distinguish 
environmental goods, and the dual use nature of many environmental goods. It was a lso noted that  INF/TE/SSD/R/4  
 
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  distinguishing between products based on production methods tended to be a concern for developing 
countries.  
3.4.  Speakers highlighted the potential benefits of liberalizing or promoting ocean -based goods and 
services . According to the UNCTAD 202 0 classification, ocean -based goods and services were defined 
as being of marine or coastal origin and use, such as harvested or sourced from the oceans  
(excluding seabed mining or offshore oil and gas ) as well as tradeable goods and services (exclud ing 
government services ). It was noted that potential liberalization in ocean -based goods and services 
could attract interest from developing countries as it would foster  their respective goods exports 
while permitting contributions from imported services. This could create business and employment 
opportunities for local communities as well as women and indigenous groups.  
3.5.  Speakers presented the role and activities of the Climate Technology Centre & Network (CTCN), 
which was mandated under the auspices of the UNFCCC Technology Mechanism to support the 
development, transfer, deployment, and dissemination of climate technologies . CTCN operated on a  
demand -driven approach  and had already supported 321 technology transfer interven tions. These 
interventions focus ed on transformational needs regarding energy, urban systems, food production 
and water systems. It was noted that technology transfer and uptake of climate technologies faced  
technological, financial, and institutional barriers in developing countries . Technological barriers  
included lack of knowledge  for operation and management , lack of standards and certification, as 
well as  qualified personnel. Financial challenges includ ed inadequate  access to finance, lack of 
commercia l viability,  as well as  lack of financial instruments and  financial institutions to support 
climate technologies. Institutional challenges  included uncertain  government policies , lack 
infrastructure, and lack of information and awareness.  
3.6.  Speakers also hi ghlighted opportunities for developing countries to participate more actively in 
discussions on the future liberalization of EGS. Among these, it was noted that developing countries 
could consider adopting special and differential treatment to secure polic y space, thereby enabling 
them to liberalize trade in EGS while promoting environmental objectives. In parallel, accompanying 
policies supporting the local production of components and the provision of local services could 
support the production of renewab le energy in the long term. Finally, speakers cautioned that as 
developing countries ' contribution to global climate change and environmental challenges were likely 
to increase , this required  global and multilateral responses.  
__________