INF/TE/SSD/R/21  
 
18 January  2024 
(24-0400) Page: 1/20 
   
 
  
TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS  
SUMMARY REPORT 202 31 
1   INTRODUCTION  ................................ ................................ ................................ ..........  2 
2   TRADE -RELATED CLIMATE MEASURES  ................................ ................................ .........  2 
2.1   Review of carbon measurement standards and decarbonization measures  ..........................  2 
2.2   Exchanges on the development and implementation process of TrCMs  ...............................  5 
3   ENVIRONMENTAL GOODS AND SERVICES ................................ ................................ .... 7 
3.1   Services and renewable energy  ................................ ................................ .....................  8 
3.2   Goods and renewable energy  ................................ ................................ ........................  9 
3.3   Developing country perspectives  ................................ ................................ .................  10 
3.4   Opportunities and approaches to promote and facilitate trade in renewable energy 
goods and services  ................................ ................................ ................................ ............  11 
4   CIRCULAR ECONOMY – CIRCULARITY  ................................ ................................ ....... 12 
4.1   Batteries  ................................ ................................ ................................ ..................  12 
4.2   Solar and wind energy  ................................ ................................ ...............................  14 
4.3   Electronics  ................................ ................................ ................................ ................  14 
4.4   Textiles ................................ ................................ ................................ ....................  16 
5   SUBSIDIES  ................................ ................................ ................................ ................  16 
5.1   Agricultural subsidies  ................................ ................................ ................................ . 17 
5.2   Subsidies related to the transition to a low -carbon economy  ................................ ...........  19 
 
  
 
1 This summary  report , prepared and circulated under the TESSD Coordinators' responsibility, provides 
a non -exhaustive summary of discussions held in plenary and informal working group meetings in 202 3. INF/TE/SSD/R/21  
 
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  1  INTRODUCTION   
1.1.  The 2021 TESSD Ministerial Statement of December 2021 and the TESSD Work Plan of 
February 2022 continued providing the basis for discuss ions in TESSD in 2023.2 The Statement by 
the TESSD Co -Conveners issued for the TESSD High -Level Stocktaking Event of 2 December 2023 
provided further guidance and focus for work in 2023.3 TESSD continued substantive discussions in 
the four Informal Working Groups (WG) on Trade -related Climate Measures (TrCMs), Environmental 
Goods and Services (EGS), Circular Economy – Circularity, and Subsidies.4  
1.2.  In 2023, TESSD held one Plenary meeting on 11 Ju ly and f our clusters of WG meetings on 
16-17 March, 10 -11 May, 19 -20 September , and 20 -21 November . The Plenary meeting on 11 July 
2023 served transparency purposes, with facilitators reporting on discussions in the WGs, and  
Members discussed possible outc omes for MC13, including a statement on trade and environmental 
sustainability by the Co -convenors, an update of the Work Plan to better reflect the direction of 
TESSD discussions as well as possible outcomes from the four WGs. Members also considered a 
proposal by the Co -convenors to develop a digital trade and environmental sustainability tool . 
1.3.  This Report provides a  non-exhaustive summary  of discussions organized by thematic work 
area, and is based on Members' statements as well as the summary reports prepared for the above 
meetings.  By the end of 2023, TESSD counted 76 co -sponsors, including two co -sponsors – Barbados 
and Peru – that joined during the year.  
2  TRADE -RELATED CLIMATE MEASUR ES 
2.1.  In the WG on Trade -related Climate Measures ( TrCMs ), Members focused on reviewing carbon 
measurement standards and decarbonization measures from a sectoral perspective. Another priority 
was the exchange of views on the development and implementation process of TrCMs, including on 
the trade considerations i nvolved in their design and possible ways to enhance transparency. In 
2023, four meetings were held on 16 March, 11 May, 20 September, and 20 November.5 
2.2.  The rich discussions over the course of the year were consolidated into a concise outcome 
document ( INF/TE/SSD/W/25/Re v.3) that provide s a compilation of best practices in the 
development of trade -related climate measures. Without endorsing any particular Member practice 
or affecting the regulatory rules and practices of each Member, th e document aim s to provide 
information and possible inspiration for the WTO membership with regard to : (i) transparency and 
consultations; (ii) impact assessments; (iii) review following implementation; and (iv)  considerations 
for TrCMs policymaking.  
2.1  Revie w of carbon measurement standards  and decarbonization measures  
2.3.  The discussion on carbon measurement standards and decarbonization measures took a 
sectoral approach, covering  the sectors of iron and steel  (March meeting) , fertilizers  (May) , 
aluminium  (September) , and hydrogen  (November) . The discussions were structured along common 
guiding questions , adapted to suit the needs of each sector  and meeting . The guiding questions, 
inter alia , included : 
 
2 TESSD Ministerial Statement – WT/MIN(21)/6/Rev.2 ; TESSD Work Plan  2022 – 
INF/TE/SSD/W/17/Rev.1 . 
3 Statement by the TESSD Co -convenors – INF/TE/SSD/W/21 ; Summary of High -Level Stocktaking 
Event – INF/TE/SSD/R/15 . 
4 The TESSD Co -Convenors are:  Canada (Ambassador Nadia Theodore) and Costa Rica (Ambassador 
Ronald Saborío). The  facilitators of the Working Groups in 2023 were : Carlos Guevara (Ecuador), Helga Helland 
(Norway ; first half of year) , and Ben Rake (United Kingdom ; second half of year) for the Working Group on 
Environmental Goods and Services; Jean -Marie Meraldi (Switzerland), Göksu Tülümen (Türkiye ; first half of 
year) and Ariel Marie Quek (Singapore ; second half of year ) for the Working Group on Trade related Clima te 
Measures; Olivia Cook (Chile) and Kazunari Morii (Japan) for the Working Group on Circular Economy – 
Circularity; and Mauro Bruno (Uruguay), Sveinn K. Einarsson (Iceland ; first half of year ) and Tiffany Smith 
(Israel ; second half of year ) for the Workin g Group on Subsidies.  
5 Summaries of meeting discussions are included in documents INF/TE/SSD/R/16  for March, 
INF/TE/SSD/R/17  for May, INF/TE/SSD/R/19  for September , and INF/TE/SSD/R/20  for November.  INF/TE/SSD/R/21  
 
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  • What trade-related climate measures , includin g standards and regulations, are Members 
pursuing to support the decarbonization of the sector ?  
• What are the trade and climate implications of such measures?  
• In which ways can carbon measurement standards be used to develop trade -related climate 
measures  to decarboni ze the sector ? 
• How can Members best cooperate with the private sector and among each other, including at 
the WTO, to promote coherence and to maximize both climate and trade benefits?  
• What are specific challenges facing developing countries? How can these be addressed: (i)  in 
the standards development stage; and (ii) in the implementation stage when measuring 
process and product emissions?  
2.1.1   Iron and steel  
Presentations  
WTO Secretariat: Briefing on  the event "Trade Forum for Decarbonization Standards" . 
The event on 9 March 2023 a imed to promote coherence and transparency through discussions 
with stakeholders on the connections between trade and decarbonization  standards in the steel 
sector. The presentation highlighted the challenges of proliferation and fragmentation of 
decarbonization standards as well as the importance of bringing developing country perspectives 
into the decarbonization discussions.   
2.4.  In the  March meeting , Members considered the implications of the proliferation of carbon 
measures  and the challenges faced by developing countries. In this context, Members discussed, 
inter alia , the importance of cooperation , harmonization and a common approach  in calculating 
embedded emissions;  interoperability of decarbonization standards and the use of Mutual 
Recognition Agreements (MRAs) at a multilateral level ; the need to establish a  common 
understanding of low -carbon steel products which  account ed for dif ferent levels of development, 
particularly since access to climate finance was constrained ; and the importance of including 
developing country perspectives. The role of the WTO as a forum for dialogue and the exchange of 
methodologies was underlined,  and c oherence with other international organi zations and initiatives  
was encouraged . 
2.1.2   Fertilizers  
Presentations  
International Fertilizer Association ( IFA) – Carbon footprint and decarbonization pathways 
of fertilizer production . 
Shared ongoing initiatives, policies and technologies  including efforts of the fertilizer, ammonia 
and hydrogen industries to develop harmonized carbon footprint standards and certifications. 
The presentation also highlighted the importance of developing tailored local d ecarbonization 
roadmaps for each countr y's fertilizer industry .  
WTO Secretariat  – Overview of global trends of trade in fertilizers . 
Observed a  decline in prices following record highs in 2022, concentration of supply in fertilizers 
and related vulnerabilities, challenges for African LDCs to secure needed fertilizer imports, trade 
restrictions such as non -automatic licences and prohibitions, and briefed on the ongoing work 
between the WTO and other international organizations on fertilizers and food security . 
OECD  – Approaches to measuring carbon footprints for food systems . 
Identified challenges  regarding  emission measurements  for food systems , public and private 
sector pushes for greater environmental disclosure, a growing number of calculation tools, and 
increasing availability of data.  
2.5.  At the May meeting, Members discussed decarbonization of the fertilizer sector  and shared  
their domestic policies ranging from broad cross-sectoral decarbonization initiatives that include the INF/TE/SSD/R/21  
 
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  fertilizer industry to specific initiatives promoting low-carbon  hydrogen  that support the production 
of green ammonia for nitrogen fertilizers . Some of  the measures discussed included, inter alia , 
carbon pricing, border carbon adjustments, product standards, regulations to reduce emissions from 
transportation, and funding for low -carbon technology research.  Further points raised by Members, 
inter alia , include  the importance of ensuring transparency by notifying measures, proposed 
regulations, and technical standards including emission measurement standards , as well as the need 
for greater  cooperation  between Members as well as with the private sector th rough dialogue, 
knowledge sharing, capacity building, information exchange, technology transfer, and the 
development of guidelines and methodologies to promote coherence between climate policies and 
trade.   
2.6.  Members also discussed challenges faced by develo ping economies, with a few Members 
pointing to the creation of non -tariff barriers on account of differing emission measurement 
standards , the variability  of emissions in agriculture (including for the cattle sector) across countries 
due to differences in production techniques , the need for enhanced capacity and knowledge to 
address emissions challenges , as well as  the need to account for other countries' national efforts 
and circumstances when implementing unilateral measures.   
2.1.3   Aluminium  
Presentations  
The International Aluminium Institute (IAI) – Carbon measurement standards and 
decarbonization trajectories in the aluminium industry.  
Introduced IAI's  Product Carbon Footprint Guideline, a single method for reporting on primary 
aluminium, alumina, and bauxite through a cradle -to-gate approach , as well as their  work on 
GHG data collectio n, publishing  and estimated scenarios and pathways for decarbonizing  the 
aluminium sector by 2050. The presentation observed  the increase in aluminium GHG reduction 
projects from 16 in 2020 to 50 in 2022 -2023.  
Emirates Global Aluminium (EGA)  – Decarbonization strategy and experience with carbon 
measurement standards . 
Provided an overview of  their activities  and implementation plans  from mining to primary 
products, including the generation of aluminium from solar power, and EGA's  increasing focus 
on the recycling of aluminium. The presentation identified the challenge of overreliance on 
inefficient data management systems , which was addressed by launching a digital monitoring, 
reporting and verification (MRV) system for automated CO2 data management.  
2.7.  The September meeting  focused on decarbonizing the aluminium industry  with several  
Members shar ing their experience with national standards and regulations aimed at supporting 
decarbonization in the aluminium sector and acknowledg ing the need for regulatory alignment. In 
this context, the development of international carbon mea surement standards was encouraged to 
reduce trade barriers, facilitate identification of emission hotspots, and decarbonize the most 
polluting sectors. Dedicated funding and collaboration between the public and private sectors were 
noted as the key to tech nological advancement, including renewable energy substitution and 
material substitution, to expedite the transition to sustainable production in the aluminium sector. 
Some Members recommended enhancing investment in new and emerging technologies such as 
carbon capture and storage as well as carbon dioxide removal and  providing incentive -based 
measures like preferential market access for aluminium conditional on meeting decarbonization 
standards.  
2.8.  A number of Members suggested sharing practices and experiences in the Committee on Trade 
and Environment (CTE)  as well as using the Committee on Technical Barriers to Trade 
(TBT Committee) to contribute to coordination and coherence of decarbonization regulations and 
standards . Some of the challenges identified included difficulty in collecting carbon emissions data 
and inform ation along the value chain due to inadequate technology and regulatory infrastructure; 
the reduction of emissions while promoting economic growth and poverty alleviation; and lack of 
knowledge, skilled experts, and capacity, particularly for small and med ium enterprises. As for 
addressing the challenges faced by developing Members, it was recommended to strengthen 
technical assistance and capacity building, financial support, cooperation between Members, and 
engagement with relevant international organizat ions.  INF/TE/SSD/R/21  
 
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  2.1.4   Hydrogen  
Presentations  
International Renewable Energy Agency (IRENA) – The role of green hydrogen in the 
energy transition and prospects for trade.  
Projected that hydrogen and its derivatives are estimated to represent up to 14% of total final 
energy consumption by 2050; transitioning to renewable energy could bring down costs and 
create potential for scaling green hydrogen production, and international trade could serve 
around a quarter of global demand for green hydrogen.  
WTO Secretaria t – Trade and trade  policies along the hydrogen value chain.  
Observed that current trade in hydrogen was largely fossil -based and much smaller than trade 
in derivatives like ammonia and methanol, which are widely used in fertilizers, chemicals and 
other se ctors. The presentation identified key tradable goods and services along the green 
hydrogen and derivatives supply chain, such as electrolysers; provided an overview of hydrogen -
related subsidies and technical barriers to trade that are notified to the WTO ; and elaborated on 
the role of trade policies along the hydrogen supply chain.  
2.9.  In the November meeting, Members shared their experiences in developing renewable energy 
and clean hydrogen markets identifying alignment of standards, conformity assessment p rocedures 
and regulatory frameworks along the hydrogen value chain as key opportunities to promote this 
sector. Further suggestions to develop green hydrogen markets and integrate developing countries 
included reducing operational complexities and improvin g business environments to support 
investment, including by sharing risk between the public and private sector s; promoting 
decarbonized energy sources that are essential to produce renewable hydrogen; adoption of 
harmonized emission calculation methodologi es such as that proposed by the International 
Partnership for Hydrogen and Fuel Cells in the Economy (IPHE); interoperable certification schemes; 
and international cooperation, particularly through bilateral and multilateral agreements , to 
encourage invest ment, sharing of intellectual property and dispute resolution.  
2.2  Exchanges on the development and implementation process of TrCMs  
2.10.   Over the course of the meetings in 2023, Members exchanged views on the development and 
implementation process of TrCMs, includi ng on the trade considerations involved in their design and 
possible ways to enhance transparency. Discussions were guided by the following questions, 
amongst others:  
• What processes and principles do Members  follow in the development and implementation 
of TrCMs ?  
• What are the main transparency mechanisms employed by Members during the regulatory 
process when developing TrCMs, and during the implementation phase?  
• What are the main public consultation mechanis ms employed by Members when developing 
TrCMs? What challenges, if any, do Members encounter in engaging with stakeholders in this 
area during the regulatory process? What stakeholder engagement practices are used by 
Members when developing and implementing  TrCMs to ensure that the special needs and 
circumstances of developing Members are taken into account?  
• Do Members consider a range of policy options to address specific problems? What processes 
do Members have in place to evaluate the impacts and effectiv eness of TrCMs during their 
development, and during their implementation in meeting its stated objectives? How do you 
balance climate and trade considerations in this process?  
• What challenges do developing Members, including their MSMEs, face regarding TrC Ms 
instituted by other Members during the development phase and during the implementation 
phase? How can these be addressed?  
• What are experiences and challenges of developing Members regarding the development 
and implementation of their own TrCMs? How can these be addressed?  INF/TE/SSD/R/21  
 
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  Presentations  
WTO Secretariat  – Briefing on  the TBT Thematic Session  of 7 March  on regulatory cooperation 
with respect to  climate change . 
Observed the increased use of regulatory measures to tackle climate change  which  could create 
trade barriers if not designed and implemented with reference to the TBT Agreement's principles 
and international standards. The presentation encouraged  maintaining global regulatory 
cooperation, increasing harmonization of technical requirements based on in ternational 
standards, and promoting mutual recognition where possible to reduce duplication and 
divergences in regulatory measures  to support increased trade in products and technologies 
needed to address climate change. The key role of the TBT Committee in achieving these goals, 
taking into account the needs of MSMEs and ensuring the effective participation of developing 
countries in the standard -setting process, was noted.  
The Forum on Trade, Environment & the SDGs (TESS)  – Principles of international law 
relevant for consideration in the design and implementation of TrCMs.  
Identified  six principles of: (i) sovereignty; (i) prevention; (iii) cooperation; (iv) prohibition of 
arbitrary and unjustifiable discrimination; (v) sust ainable development, equity and CBDR; and 
(vi) transparency and consultation , which  could contribute to TrCMs that are WTO -compatible, 
development -friendly, and effective in their climate ambition. TrCMs were considered as legal 
hybrids subject to multiple  legal regimes and coherence between them was encouraged.  
International Institute for Sustainable Development (IISD) – Key design elements of 
border carbon adjustment (BCA) and priorities for international cooperation.  
Provided an overview of design featu res relevant to BCA policies such as geographic scope, 
emissions scope, calculation of emissions, crediting of foreign policies, and use of revenues. It 
also highlighted related considerations including domestic and partner's capacity to implement, 
transit ion period and reviews, impact on trade flows and preferences, and stressed on the 
importance of cooperation on different design features.  
International Trade Centre ( ITC) – TrCMs and their impact on small businesses in developing 
countries . 
Shared t wo ca se studies: (i) mandatory environmental and human rights due diligence; and 
(ii) deforestation -free global value chains , which  highlighted the importance of creating spaces 
for dialogue, feedback loops, value chain -based action plans, support for policy im plementation 
including accompanying measures for MSMEs, a smart mix of mandatory regulations and 
voluntary standards, and a multi -stakeholder approach.  
2.11.   In the March and May meetings, Members shared their experiences regarding the 
development of TrCMs and discussed , inter alia , the role of transparency procedures such as public 
reporting, publishing draft regulations  and public consultations ; stakeholder engagement  and 
interagency processes ; and evidence -based decision -making , including  impact assessments  and 
establishing expert groups and committees . Some initiatives undertaken by Members included 
partnerships with key industries to target climate change, introduction of key performance indicator 
(KPI) targets based on national and inte rnational indices, policies such as carbon pricing, BCAs, 
embodied emissions reporting, voluntary and mandatory product standards, labelling and 
procurement measures.  Discussions also covered the provision of adequate time for implementation, 
multilateral and plurilateral engagement, and ensuring that administrative burdens do not create 
barriers to trade. Stakeholders intervened to share relevant ongoing activities and encouraged the 
WTO to foster inclusive and effective international cooperation and coord ination.  
2.12.   During the September meeting, Members reacted to the presentation s by TESS  and IISD  and 
engaged in substantive discussions concerning the relationship between the international trade and 
environment legal regimes as well as the resulting rights  and obligations . Although there was no 
consensus among Members as to the content or applicability of the principles identified by TESS, 
several Members suggested , in the discussions on BCAs,  that the  trade regime should support 
climate goals in a manner that  ensures that all the rights and obligations of Members, particularly 
developing countries, were preserved. On the topic of carbon leakage, t he importance of 
transparency and openness among Members was underscored and it was suggested the work 
towards enhancing compatibility between different national systems could be productive, since exact 
alignment was not feasible due to differing national circumstances.  INF/TE/SSD/R/21  
 
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  2.13.   In the November meeting, Members  discussed developing country perspectives and 
implementation of TrCMs. A number of Members encouraged greater engagement early in the 
development stage of TrCMs and identified significant implementation challenges for developing 
countries, particularly fo r their MSMEs, such as insufficient phase -in/transition periods, lack of 
financial capacity, and inadequate technical and digital infrastructure to adapt to new regulations by 
third countries while remaining competitive.  As mentioned at the beginning of se ction 2, Members ' 
exchange s were consolidated into an outcome document ( INF/TE/SSD/W/25/Rev.3 ) that provides a 
compilation of best practices in the development of trade -related climate measures.  
3  ENVIRONMENTAL GOODS AND SERVICES  
3.1.  The WG o n Environmental Goods and Services ( EGS) pursued an objective -based approach 
discussing how trade in EGS could support the objectives of climate adaptation and mitigation, with 
a particular focus on the renewable energy sector. In 2023, four meetings were held on 17  March, 
10 May, 20 September, and 20 November.6 In terms of sectors, the meetings focused on solar 
energy in March, on wind energy and hydropower in May, and on green hydrogen and biofuels in 
November. The meeting in September focused on opportu nities and approaches to promote trade in 
renewable energy goods and services  as well as on developing countries ' perspectives, with the 
latter being an issue that saw dedicated discussions in all four meetings.  
3.2.  Across the meetings, Members worked on an Analytical Summary as an outcome document, 
(INF/TE/SSD/W/24/Re v.4), which provides: (i) indicative lists of key goods and services for 
renewable energy; (ii) trade barriers and supply chain bottlenecks; (iii) developing country 
perspectives; and (iv) opportunities and approaches fo r promoting trade in renewable energy goods 
and services. Members consider the Analytical Summary to be a living document that w ill continue 
to be updated as discussions in the WG proceed.  
Presentations  
WTO Secretariat  – Renewable energy services and rel ated services that support the sector.  
The presentation  explained the challenges in defining renewable energy services using the 
Services Sectoral Classification List, and illustrated the different types of services that were 
supporting the renewable ener gy supply chain. It also pointed to the limited data on renewable 
energy services trade. As governments implemented various policies to encourage renewable 
energy, horizontal measures relating to investment, land use, professional licen cing or 
movement of natural persons could act as barriers to trade in renewable energy services.  
LONGi Green Energy Technology Co. Ltd.  – Briefing on activities in the solar energy sector, 
particularly trade -related challenges and opportunities.  
Highlighted that continued a dvancement of the learning curve, technological innovation, and 
industry scale effect s had made solar PV increasingly cost -competitive, driving up market 
demand significantly. The presentation also identified bottlenecks in international trade including 
the numerous trade remedy cases initiated against PV products and called for greater 
connectivity between global markets and increased international cooperation to achieve net zero 
goals by 2050.  
The United Kingdom  – Building an evidence base on EGS using a value chain analysis.  
The presentation highlighted that a value chain analysis c ould provide a unifying conceptual 
framework for understanding a wide array of policy issues relating to EGS. Illustrated the 
applicati on of value chain analysis for solar PVs. The United Kingdom also proposed that the 
TESSD facilitators, with support from the WTO Secretariat, build and maintain a living summary 
document.  
Ernst & Young  – Service inputs to the wind energy value chain.  
The presentation elaborated on the role of services in decarbonizing supply chains, as well as 
the professional services required at different stages of wind power projects throughout their 
lifecycles including, inter alia , site selection, engineering, legal  services, technical services, 
consulting services, environmental impact assessments, financial services, and maintenance 
services.  
 
6 Summaries of meeting discu ssions are included in documents INF/TE/SSD/R/16  for March, 
INF/TE/SSD/R/17  for May, INF/TE/SSD/R/19  for September , and INF/TE/SSD/R/20  for November.  INF/TE/SSD/R/21  
 
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  Presentations  
Australia  – Experience on promotion and facilitation of trade in goods and services for 
environmental purposes.  
The presen tation focused on the Asia -Pacific Economic Cooperation (APEC) reference list of 
environmental services and environmental goods and services lists included in the 
Singapore -Australia Green Economy Agreement (SAGEA). Key challenges that were identified 
included defining the scope of EGS, and the operational challenge of how to promote trade in 
the categorized EGS. Non-binding indicative lists were considered a useful tool and could  guide 
discussions on cooperation in areas such as technical standards and dom estic regulatory 
regimes. Furthermore, the SAGEA and approaches such as indicative lists had an important role 
in signalling policy intent to markets even where liberalization did not occur.  
United Kingdom  – Insights based on a technical non -paper, "Hydrogen energy and trade" 
(INF/TE/SSD/W/30 ). 
The presentation outlined the importance of hydrogen in decarbonization efforts, identified goods 
and services needed in the sector, barriers to trade and the  uptake of hydrogen, and also 
signposted various international initiatives in the development of hydrogen standards 
emphasizing the importance of interoperability among standards.  
Uruguay  – Green hydrogen and derivatives roadmap.  
Priority sectors included  methanol, e -fuel, heavy transport, and fertili zers. The presentation also 
highlighted Uruguay's potential to be a producer and exporter of green hydrogen and provided 
an overview of Uruguay's H2U programme – coordinated by an interinstitutional group of v arious 
government ministries and stakeholders – aimed at building green hydrogen generation capacity, 
infrastructure, attracting investment, designing regulations and enabling dialogue with civil 
society.  
Brazil – Overview of national biofuels policy.  
The presentation elaborated on  Brazil's  RenovaBio  policy , which provided for: (i)  national targets 
for emission reductions; (ii) individual certifications based on a lifecycle analysis; and 
(iii) decarbonization credits related to the compliance with emission  targets. The presentation 
also provided an overview of well -to-wheel emissions in the automotive industry, the national 
sustainable aviation fuel programme, CO2 capture and storage technology regulation, the 
national green diesel programme , and the regula tions on increasing ethanol limits in gasoline.  
3.1  Services and renewable energy  
3.3.  Members' discussions in this W G were guided by questions which  were adapted to the sector 
focus of the  meetings. Broadly, the questions were as follows:  
• What services are important for the development, installation and operation of renewable 
energy projects? How do these services either (i) contribute directly to climate change goals 
or (ii) support environmental goods in achieving climate goals?  
• What are the main barriers to trade in these services?  
• What is your experience or what do you see as possible opportunities and approaches to 
promoting and facilitating trade in these services?  
3.4.  Over the course of the four informal WG meetings held in 2023, Member s noted that renewable 
energy development cannot be separated from support  from a wide range of services . During the 
discussions, Members explored both up - and down -stream services needed in the development of 
renewable energy and identified  the key servic es that are important horizontally across renewable 
energy  sectors . These discussions  are reflected in the draft outcome document for this WG in the 
form of indicative lists of environmental services related to the development, installation, operation 
and decommissioning of renewable energy projects .  
3.5.  During the discussions, a number of Members also made reference s to existing lists of 
environm ental services such as , inter alia , those found in the Asia -Pacific Economic Cooperation 
(APEC)'s Reference List of  Environmental and Environmentally Related Services and in the SAGEA . 
Some Members emphasized the need for a multidimensional approach  involv ing a variety of services  INF/TE/SSD/R/21  
 
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  and suggested establishing a clear scope for environmental services or to formally recogniz e that 
environmental services went beyond those covered in Central Product Classification (CPC) 94.  
3.6.  Through the sectoral focus in each meeting, M embers discussed the  related trade barriers  for 
the efficient deployment of trade in services. The draft outcome document for this W G also contains  
a list of these barriers to trade in services and covers conditions on market entry, operations, 
administrative procedures  and regulatory transparency. A number of Members made references to 
services trade policy databases by the WTO and  World Bank , the OECD  Services Trade 
Restrictiveness Index (STRI) , as well as the Joint Statement Initiative on Servi ces Domestic 
Regulation at the WTO, as useful tool s in identifying and addressing trade barriers, facilitating trade 
in environmental services , and promoting transparency and predictability in regulatory practices.  
3.7.  Some Members also noted the importance  of foreign investments and  opportunit ies to take on 
enhanced services commitments in Mode 3 (commercial presence) for promoting job creation, hig her 
salaries, and knowledge transfer in emerging economies, as well as the relevance of Mode 1 
(cross -border supply) and Mode 4 (movement of professionals) for renewable energy  projects , 
including wind energy and hydropower .  
3.2  Goods and renewable energy  
3.8.  Discussions pertaining to environmental goods were guided broadly by the following questions, 
adapted to the sector s being covered in the meeting s: 
• What are key goods to allow renewable energy to achieve climate change goals including 
mitigation and adaptatio n objectives?  
• What are the main bottlenecks in supply chains or barriers to the dissemination of these 
goods?  
• What is your experience or what do you see as possible opportunities and approaches to 
promote and facilitate trade in goods that are important fo r renewable energy development?  
• What are opportunities and approaches, including at the WTO, to address barriers and 
bottlenecks to the dissemination of these goods, including in areas such as regulatory 
measures and standards, trade facilitation and mark et access?  
3.9.  In the March meeting, Members discuss ed specific examples of goods key to the solar sector  
including critical raw materials and related goods . The importance of a value chain analysis was 
emphasized  and Members appreciated the technical paper presented by the United Kingdom 
(INF/TE/SSD/W/23 ) as useful for identifying related goods and services. Reference was also made 
to the APEC List of Environmental Goods and the SAGEA for containing specif ic examples of 
environmental  goods  and it was also suggested that in many cases ex -outs could be considered 
since Harmonised System (HS) nomenclature often did not differentiate between environmental 
goods and other goods.   
3.10.   The May meeting focused on wind energy and hydropower whereas the November meeting 
covered green hydrogen and biofuels . Members ' discuss ed what they considered to be the  key goods  
in these sectors , and detailed insights were provided by v alue chain analys es carried out by the 
United King dom on off -shore wind energy ( INF/TE/SSD/W/26  and INF/TE/SSD/W/26/Ad d.1) and 
hydrogen ( INF/TE/SSD/W/30 ). The environmental goods identified in each of these sectors have 
been compiled into indicative lists and reflected in the outcome document ( INF/TE/SSD/W/24/Rev.4 ) 
of this WG.  
3.11.   Members highlighted the need to expand the proportion of renewable energy generation and 
had substantive discussions on the bottlenecks and barriers to dissemination of environmental 
goods. Some of these include inadequate transportation  infrastructure and know -how to support 
distribution; regulatory challenges in the supply chain as well as global supply chain disruptions and 
delays; dependence on limited suppliers of critical minerals; technical regulations and non -trade -
related barrier s; grid integration challenges such as variable power generation; technological 
limitations and financing challenges for MSMEs. For the biofuels sector, some of the challenges 
included the need for government support for creating markets, traceability alon g complex supply INF/TE/SSD/R/21  
 
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  chains, potential effects on land -use change, as well as ensuring coherence of certification schemes 
and standards as new types of biofuels entered the market. A number of Members highlighted the 
importance of making research useful for Me mbers with less technical capabilities, and mapping 
value chains to identify decision points and barriers. A consolidated list of supply chain bottlenecks 
and barriers to the dissemination of these environmental goods can be found in the outcome 
document f or this WG. 
3.3  Developing country perspectives  
3.12.   When discussing developing country issues  in the four meetings , Members considered the 
following guiding questions : 
• How can trade in goods and services help developing countries with access to and 
deployment of renewable energy technologies? What are the challenges and needs of 
developing countries and LDCs to use trade to develop the renewable energies?  
• What are opport unities for developing countries to participate in renewable energy value 
chains, including for local value addition to renewable energy projects as well as exports?  
• How can trade policy and trade -related technical assistance and capacity  building, includi ng 
Aid for Trade, support developing countries and LDCs in developing their renewable energy 
sectors and in participating in renewable energy value chains?  
Presentations  
International Solar Alliance (ISA) – Access to and deployment of solar energy technol ogies 
in developing countries.  
ISA briefed Members about its programmes and three strategic priority areas: advocacy and 
analytics, capacity building, and project implementation. It further noted that it was organizing 
a Global Startup Challenge to attrac t entrepreneurs from the African region, with the first leg of 
the challenge being launched during the UNFCCC 's COP  27. 
UNCTAD  – Insights from the "Technology and Innovation Report 2023: Opening green windows 
– Technological opportunities for a low-carbon world" . 
Highlighted policy as the main driver in opening green opportunities in developing countries and 
noted that incentives would be necessary to support a green transition due to the possibility of 
market failures. Additionally, the report c alled for consistency between the trade, Intellectual 
Property (IP) and climate change regimes; for greater flexibilities for developing countries 
regarding IP and green technologies; and for flexibilities for developing countries in trade rules 
to foster infant green industries through tariffs, subsidies, and public procurement.  
WIPO Green and National Institute of Industrial Property Brazil (INPI)  – Collaboration 
on acceleration projects in Brazil targeting biodiversity protection through innovative 
technologies.  
The presentation by WIPO introduced the WIPO GREEN Platform which combines a database, 
acceleration projects, partners, and resources, such as the WIPO Green Technology Book, to 
address the knowledge gap between needs and solutions  in green innovation and technology. 
INPI provided an overview of the acceleration projects in Brazil undertaken in collaboration with 
WIPO Green . The projects  were currently in their third phase of implementation with 11 business 
rounds where companies ha d been connected with inventors.  
UNCTAD – Insights from the "World Investment Report 2023 – Investing in Sustainable Energy 
for All".  
Observed declining trends in  global Foreign Direct Investment (F DI) flows, increase in investment 
activity in SDG sectors  and developing countries , resilience of sustainability themed investments, 
and a need for greater investments in the energy sector in many developing countries , 
particularly  in energy infrastructure . The presentation stressed the importance of building 
investor confidence through detailed investment planning in national energy transition strategies 
and introduced the Global Action Compact comprising guiding principles for policymaking in the 
energy transition.  INF/TE/SSD/R/21  
 
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  Presentations  
EDF Kenya – Challenges and opportunities with renewable energy projects in Africa.  
Challenges identified included difficulties obtaining licences and permits, tariff approvals, lack of 
operation and maintenance services, changing domestic regulations including taxation, price 
compet ition, and falling exchange rates. On the other hand, opportunities covered those related 
to the improving regulatory environment, upskilling of workforce, diversifying the economy, a 
developing financial services sector, and growing infrastructural develo pment.  
3.13.   In the March meeting, Members highlighted that challenges of weak infrastructure, poor 
financing conditions, insufficient human capacity, and trade barriers, led to higher costs and delayed 
deployment of solar  energy  products. In this context , it was noted that trade in EGS can facilitate  
greater access to technologies, investments, expertise and skill training through the movement of 
labour and knowledge transfer  thereby supporting the deployment of solar energy while also 
enabling developing count ries to become producers of green technology.   
3.14.   In the May meeting, the focus was on wind energy and hydropower and Members emphasized, 
inter alia , the role of the WTO in addressing barriers to trade in environmental goods and services 
like tariffs, technical standards, and labelling requirements. UNCTAD noted that developing countries 
might require industrial policy to support their green transition and encouraged aligning 
commitments under the international trade and environment regimes.  
3.15.   Discussions in the September meeting addressed access to international climate financ e and 
international cooperation to encourage energy investments, tech nical assistance and capacity 
building. In this context, a number of Members pointed to the importance of creating stable 
investment environments, investing in education and skills, and addressing certain barriers that 
discouraged cross -border capital flow s. It was noted that the Investment Facilitation for 
Development (IFD) Agreement could help developing countries attract FDI, and that regional trade 
agreements could create economies of scale to foster value chain creation and participation in 
developing and LDC Members.   
3.16.   In the November meeting, Members discussed developing country opportunities in green 
hydrogen and biofuels. A number of Members noted that n atural resource -abundan t developing 
countries  with proximity to water had an opportunity to gain c ompetitiveness in green hydrogen 
production , and highlighted the importance of development of infrastructure and technology for 
scaling production, certification processes and training programmes, and attracting private 
investment , including by reducing fi nancial risks for the private sector. In the discussion on  biofuels,  
a number of Members considered that  the wide variety of feedstocks including agricultural, forestry 
and waste -derived feedstocks provided opportunities for production depending on the ind ividual 
circumstances of each country. It was recognized that developing the biofuels sector could, inter alia, 
contribute to providing energy security, create jobs and foster economic growth, and bring value 
addition to farmers while also resulting in val uable co -products and decreased dependence on fossil 
fuels.  
3.4  Opportunities and approaches to promote and facilitate trade in renewable energy 
goods and services  
3.17.   Members  had substantial discussions (particularly in the September meeting) on the various 
opportunities and approaches to promote and facilitate trade in renewable energy goods and 
services . On services, a number of Members, inter alia , highlighted the importance of promoting 
good regulatory practices for licencing and authorization procedures, improving regulatory 
transparency related to renewable energy services and enhancing market access by reducing 
barriers or by taking binding commitments. On goods, several Memb ers, inter alia , suggested  the 
harmonization and mutual recognition of technical standards, value chain and lifecycle analyses in 
identifying environmental goods, tariff liberalization on key renewable energy goods including inputs 
to reduce overall cost, project -based approach es for tariff reductions, tariff preferences based on 
compliance with carbon standards,  trade facilitation measures to streamline cross -border movement 
of goods,  WTO consistent subsidies to support renewable energy products, and prioritization of 
renewable energy goods in public procurement .  INF/TE/SSD/R/21  
 
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  3.18.   A few Members encouraged further collaboration within TESSD on proposing amendments to 
the existing H S classification.  Members  also emphasized the need for technical assistance and 
capacity building  as well as the importance of investment facilitation for developing countries . Some 
Members noted the need for a balanced approach regarding the protection of intellectual property 
rights that allowed for sharing of renewable energy techn ology, especially with developing countries, 
and the benefits of fully implementing WTO agreements, including those on TBT, Trade Facilitation 
and Government Procurement.  
4  CIRCULAR ECONOMY – CIRCULARITY  
4.1.  The WG on Circular Economy – Circularity carried out a mapping exercise throughout the year 
to build a broader understanding of the trade aspects of the circular economy which are relevant to 
each part of the lifecycle. The outcome document ( INF/TE/SSD/W/27/Rev.2 ) of this exercise 
provides  a mapping of : (i) Members' initiatives and experiences aimed at promoting a circular 
economy; (ii) measures in the WTO (notifications and TPRs) from the WTO Environmental Database; 
(iii) trade aspects of the circular economy based on presentations, analyt ical work and discussions; 
and (iv) a table with areas of possible trade -related action.  
4.2.  In its discussions, t he WG pursued a sector -specific approach , analysing specific trade  issues 
along the full lifecycle of products. In 2023, it held four meetings, wi th a focus on batteri es on 
17 March , solar and wind energy  on 11 May , electronics  on 19 September , and textiles  on 
21 November .7 The sectoral discussions were structured along different guiding questions, adapted 
to the sector al context :  
• What role does trade and trade policy play in Members' strategies and policies to promote 
circularity in the relevant sector?   
• What opportunities exist for Members in WTO (in areas such as trade facilitation; technical 
regulations; labelling and certification; confo rmity assessment procedures; government 
support; or trade restrictions) to ensure , facilitate  and promote  safe circular value chains in 
the relevant sector?  
• What trade policies, tools and collaborative actions could support developing and LDC 
Members in ad dressing challenges along the lifecycle of goods in the relevant sector?  
• How can transparency and traceability support circularity? What role could labelling and 
product passports have in this regard , including with regard to trade facilitation of end -of-life 
products and addressing waste dumping and management concerns?  
• What opportunities and challenges can be posed by regulatory measures and eco -design 
implemented to support transitions to circular economy?   
• What challenges related to international trade of used and end -of-life goods  exist, including 
regarding waste management? H ow can they be addressed?  
4.1  Batteries  
Presentations  
OECD – Trade policies to promote the circular economy: a case -study of lithium -ion batteries 
(LiB).  
Highlighted the role of reuse and recycling to meet increased demand for LiB raw materials while 
preventing health and environmental hazards from waste LiB. Policies affecting LiB trade flows 
included differing definitions of waste and related regulations on transport, traceability, and 
border control procedures; special rules of origin regarding recovered materials; harmoni zation 
of standards for battery design while preserving innovation; labels and traceability. Circularity 
of LiB can be promoted through  consistency of regulations in terms of transport and storage 
 
7 Summaries of meeting discussions are included in documents INF/TE/SSD/R/16  for March, 
INF/TE/SSD/R/17  for May, INF/TE/SSD/R/19  for September , and INF/T E/SSD/R/20  for November.  INF/TE/SSD/R/21  
 
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  Presentations  
safety, border procedures like pre -consent mechanisms, risk assessment and digital Prior 
Informed Consent ( PIC) procedures; government incentives; Extended Producer Responsibility.  
National Board of Trade Sweden  – Kommerskollegium of the study "Trade Rules for a Circular 
Economy: The case of used lithium -ion batteries.  
Projected global battery demand to be approximately 19 times greater in 2030 than it was in 
2018 and provided sugges tions to promote circularity of LiB including, inter alia , simplified trade 
procedures between trusted parties, advanced fast -track procedures, harmonizing and extending 
coverage, working within existing forums, improved market access, transparency, and da ta 
availability.  
WTO Secretariat – Status of mapping of measures relating to the circular economy in the WTO.  
Focused on the battery sector and shared observations from the WTO Environmental Database 
which revealed 33 battery related measures notified by  18 Members under five agreements, and 
24 measures identified from 20 Trade Policy Reviews. Main takeaways included predominance of 
regulatory measures followed by market access and subsidy measures; numerous measures on 
hazardous waste management to prote ct health and the environment and linked to related 
international agreements; measures related to recycling; measures related to reuse, some in 
the context of battery charging stations.  
Glencore – Activities regarding circularity of batteries Circularity of batteries and trade -related 
challenges and opportunities.   
Focused on its business model, particularly the recycling aspect which aims to, inter alia , combine 
primary and recycled feeds as well as meet quality and quantity requirements. Challenges relat ed 
to circularity of batteries included divergence in definitions and classifications of waste; 
transaction costs arising out of licen cing, complex administrative procedures and obtaining trade 
permits; permitting costs such as paper -based PIC procedures. Opportunities to overcome these 
challenges included digitali zed border measures and traceability; harmoni zed standards and 
transparent domestic requirements; policy action including on reverse supply chains, regulatory 
convergence and cooperation.  
Contemp orary Amperex Technology Co. Limited (CATL) – Activities in circularity of 
batteries and trade -related challenges and opportunities.  
Highlighted inter alia,  that recycling is integral to establishing sustainable EV supply chains due 
to increasing demand for batteries and shared its work on creating a closed loop of battery 
production, application, cascade utilization and finally battery recycling. Identified areas needing 
more work such as accurate tracing system for collection of batteries, ensuring high collection 
rate of used batteries, balancing battery ownership of consumers and Extended Producer 
Responsibility ( EPR) for producers, regulatory barriers, re gulations and standards for the 
secondary market, and life cycle management systems.  
Closing the Loop  – Trade -related challenges in developing countries regarding battery 
recycling.  
Focused on the export of e -waste from Africa, particularly batteries in mo bile phones and laptops, 
and noted the difference between waste transportation and waste trade. Challenges included 
complex permitting, low volume of permits indicating less capacity in developing countries, 
safety with respect to hazardous waste, and the large informal sector in waste collection. 
Collaboration between authorities and capacity building were highlighted as a key solution in 
addition to approaching waste as a commodity to be traded.  
4.3.  Members noted that trade policy could either facilitate or hinder circular economy, depending 
on regulations and tariffs which influence d the movement of used batteries across borders, the 
availability of second -life applications, and the development of recycling infrastructure. Trade policy 
could cr eate opportunities for battery recycling by promoting circularity  of lithium batteries thereby 
reducing the pressure on resources and the environment , while trade barriers and export restrictions 
could decrease incentives for recycling or refurbishment and  lead to illegal trade flows.  
4.4.  A number of Members highlighted the importance of transparency and traceability; focusing on 
the upstream sectors like battery design; harmonized definitions, standards, and regulations; and 
the role of the WTO in coordinatin g technical regulations, monitoring trade policy, improving 
recycling capacity in developing countries and bringing together the trade, environment and INF/TE/SSD/R/21  
 
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  regulatory communities in TESSD.  Additionally, a  few Members shared their domestic initiatives in 
the battery sector . 
4.5.  Members further discussed tools to support developing and LDC Members in addressing 
challenges along the lifecycle of batteries  such as transparency and standardization in product design 
and collaborative action including with other internati onal and regional organizations.  
4.2  Solar and wind energy  
Presentations  
Smart Prosperity Institute  (SPI)  – Trade -related circular economy aspects of wind and solar 
energy.  
Highlighted the need to clarify definitions and classifications for circular trade, to identify 
regulatory and technical barriers for growing circular trade and how trade agreements  or policies 
such as digital product passports could address those, as well  as to build partnerships to facilitate 
trade and develop regional eco -systems for circular innovation, investment, and scale economies 
needed for the viability of recycling.  
IRENA  – End-of-life management of solar PV and the circular economy . 
Covered PV  recycling and potential new trade flows of raw materials, the role of standardization, 
and the importance of international collaboration and technical assistance, also with regard to 
maximizing benefits and avoiding potential negative environmen tal impacts of second -hand solar 
PV in developing countries.  
Ørsted – Activities for circularity of wind energy projects and related trade aspects.   
Focused on trade aspects along three strategic circularity  pillars – design and supply chain 
(minimizing i nput material, increasing  secondary inputs); late -life strategies (repair, reuse, 
lifetime extension); and resource recovery (increasing recyclability). Ørsted also highlighted key 
challenges across all lifecycle stages to increase circularity in the renew able energy industry, 
such as establishing reliable second -hand markets.   
4.6.  Several Members acknowledged that trade could contribute to promoting circularity, including 
by facilitating the reuse, repair, and recycling of goods and materials and promoting se rvices that 
supported this. Members shared their experiences and policies in this regard including initiatives 
aimed at  minimizing waste, reducing the need for new materials, utilizing trade agreements to 
encourage sustainable production practices in the r enewable energy sector, and ensuring secure and 
sustainable access to critical raw materials. It was also noted that trade policy based on circular 
economy principles could result in reduced mining needs , promote reuse, repair, remanufacturing 
and recycling, and enhance cooperation on standards and product recyclability.  
4.7.  Consideration of trade -facilitative approaches for reverse supply chains and the alignment of 
international standards were also discussed, with some Members not ing the role of the WTO 
TBT Committee in the development and uptake of regulatory measures for a safe and circular supply 
chain. Some Members also noted that trade policies should be carefully designed to avoid 
encouraging unsustainable practices and inste ad incentivize circular economy solutions. Technical 
assistance, preferential market access, and access to finance were highlighted as supportive 
measures for developing countries.  A number of Members, including developing economies, stated 
that technical assistance and investments were particularly important for greater pro -circular 
technology adoption, and highlighted challenges related to recycling waste.  
4.3  Electronics   
Presentations  
World Customs Organisation (WCO) – Insights from the report  "Transition to a circular 
economy and implications for Customs administrations."  
Identified c hallenges  regarding trade in circular economy goods . Customs authorities face , 
inter alia, issues of limited data , procedural complexity and waste crime challenges , while the 
private sector  challenges include  lack of HS codes and subsequent customs valuation difficulties, 
difficulty obtaining certificates of origin and incorporating a circular economy in the Authorized INF/TE/SSD/R/21  
 
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  Presentations  
Economic Operator (AEO) scheme , non-customs regulations on second -hand/used goods  (such 
as import bans, non -automatic licencing requirements, quality control, and other technical 
requirements ). The presentation also  provided examples of initiatives and good practices such 
as monitoring and tr acing through product passports and Global Trade Item Number (GTIN) 
systems .  
Secretariat of Basel, Rotterdam and Stockholm (BRS) Conventions – Developments 
regarding Prior Informed Consent (PIC) procedure and e -waste.  
All e-waste will be subject to PIC p rocedure as of 2025 and all transboundary movements of 
hazardous and other waste need to be subject to trade control procedures at every stage under 
the PIC procedure. Areas to improve include efficiency of procedures, digitalization of documents , 
ensuring  responsiveness of the competent authorities , and distinguishing between waste and 
non-waste as well as between hazardous and non -hazardous waste . The presentation also 
discussed the role of national legislation with respect to  the private sector , financial schemes 
that support circularity , credibility of the labelling and certification schemes , and standards for 
collection and recycling.  
WTO Secretariat  – Comment from trade facilitation perspective.  
The WTO T rade Facilitation Agreement (TFA)  could play a positive role in the development of 
circular economy,  for instance through  provisions relating to transparency , the opportunity to 
comment on proposed changes in regulations , and the possibility of advanced rulings on customs 
issues like HS class ification and rules of origin. Furthermore, the importance of outreach and 
standards, building trust and credibility, customs cooperation, digitalization  and single windows, 
and authorized economic operators were underlined. It was noted that TFA implement ation 
varied across the membership and  the importance of technical assistance was emphasized for 
those  developing and LDC Members  that had been facing challenges with full implementation.  
ASEAN – ASEAN framework for circular economy . 
Aimed at providing AS EAN members a structured pathway to adopt the circular economy model 
while enabling them to meet their respective carbon emission targets under the Paris Agreement. 
The five strategic priorities of the Framework include: (i) standards harmoni zation and mut ual 
recognition of circular products and services; (ii) ensuring trade openness and trade facilitation 
in goods and services; (iii) enhanced role of innovation, digitalization, and emerging 
technologies; (iv) sustainable finance and innovative investment; and (v) efficient use of energy 
and other resources. The Implementation Plan (2023 -2030) covers the agriculture, energy and 
transport sectors.  
Circular Innovation Lab – Extended Producer Responsibility (EPR) and developing country 
challenges with used an d end -of-life electronics . 
Observed data on exports of Used Electrical and Electronic Equipment (UEEE) from the 
European  Union (EU) to Africa including resulting loss of EPR fees and  proposed to extend EU 
EPR fees to cover end -of-life activities of product s shipped outside the EU. The presentation also 
made several policy recommendations including international collaboration and coordination, 
collection of trade data, improving traceability and technology, and the development of circular 
products.  
4.8.  Several Members emphasized the need for cooperation among Members as well as greater 
coherence among international organizations  especially in the areas of standards and international 
best practices, the international adoption of high efficiency technologies, auto mation, and paperless 
customs procedures, smooth and streamlined PIC procedures, policy exchanges, and technical 
cooperation. It was noted that references  in free trade agreements to circular  economy  were made  
in a rather  general  manner,  and that there wer e opportunities to engage the National Trade 
Facilitation Committee in the implementation of the Basel Convention.  
4.9.  A number of Members recommended a whole of lifecycle approach from product design to 
repair, reuse, collection, and sorting for waste management. Transparency and traceability 
mechanisms like labelling and digital product passports were discussed as a means to enabling value 
retention acti vities including sorting and recycling, enable business opportunities, overcome 
uncertainty over sourcing and quality of recycled materials . Some Members suggested the possibility 
of forming an international consortium to explore and standardize these mech anisms , advocated 
international mutual recognition  of certifications , and encouraged robust data collection and the INF/TE/SSD/R/21  
 
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  sharing of technological approaches regarding transparency and traceability.  Additionally,  to ensure 
safe circular trade,  some Members sugge sted pre-treatment of e -waste before export, 
communication along the lifecycle between manufacturers and recyclers, supporting cross -border 
movement of services essential for waste management, and the formulation of international 
guidelines.  
4.10.   Members ident ified some of the challenges faced by developing countries as including 
establishment of effective recycling and disposal facilities to prevent environmental pollution and 
harmful impacts on human health, a large informal waste recovery sector with inadequ ate working 
conditions, lack of capacity, and the need for technical assistance. Members considered the role of 
the WTO, particularly through programmes like Aid for Trade, in developing infrastructure and 
regulatory frameworks through capacity building in  developing countries. Some Members also 
addressed the difficulties arising from inefficient communication between jurisdictions, which created 
barriers for exporters.  
4.4  Textiles  
Presentations  
UNEP – Towards a circular textile value chain: sustainability ho tspots and priority actions.  
Identified  three priorities for policymakers: (i) shifting consumption patterns; (ii) improving 
existing practices; and (iii) investing in infrastructure. Key actions included encouraging circular 
and sustainable product design, supporting the development of related global standards, data, 
tools and guidelines, as well as exploring trade policy options for textile waste to prevent 
underutilization and maximize circularity.  
UNECE – Enabling circular trade in textile value chains: the role of traceability.  
Addres sed the value chain from raw material production to post -consumption stage and provided 
an overview of UNECE's Framework Initiative. The presentation d iscussed blockchain pilot 
projects across products and regions using the UNECE methodology, which covers:  (i) the 
selection of the claim to be substantiated; (ii) identification of the type of evidence needed; and 
(iii) tracking and tracing the phases of p roduction with supporting documentary evidence. The 
presentation also touched upon UNECE's projects on trade of second -hand clothing and product 
circularity data.  
4.11.   Several Members emphasized, inter alia , the importance of transparency and traceability in 
textiles, including through digital product passports and labels to inform consumer choices; 
preventing used textile exports intended for reuse or recycling from being incinerated or entering 
informal waste -streams or landfills; and ensuring safe and envir onmentally sound management at 
the post -consumer stage. Some Members also highlighted the role of eco -design regulations and 
Extended Producer Responsibility (EPR) schemes to promote circularity in textiles; investment in 
recycling infrastructure, includin g through public -private partnerships to finance end of -life 
management and create economies of scale; development of technology for value extraction to 
create reliable sources of quality recycled materials; and promoting interoperability and alignment 
of international standards to make circular business models more commercially viable.  
5  SUBSIDIES  
5.1.  The W G on Subsides continued in 2023 its work on the potential positive and negative 
environmental effects of subsidies, as well as related trade impacts. The meet ings held on 16  March 
and 19 September were devoted to agricultural subsidies while the meetings held on 10  May and 
21 November addressed subsidies related to the transition to a low -carbon economy.  Central to the 
meetings were Members' experience sharing regarding subsidy design and discussion of possible 
ways to enhance transparency and data availability. Discussions were guided by the following 
questions, adapted to the sector and meeting:  
• How ca n the environmental effects and trade impacts of subsidies be identified?  
• What are information gaps to better understand these impacts, and how could transparency 
and data availability on subsidies be enhanced?  INF/TE/SSD/R/21  
 
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  • How can agricultural subsidies impact behavio ural changes to support environmental 
sustainability?  
• What kind of agricultural subsidies can be beneficial to the environment? What criteria do 
Members consider when establishing subsidies in order to determine whether or not they 
are environmentally frie ndly?  
• How do Members' consider and balance possible environmental effects and trade impacts in 
the design of subsidies?  
• What programmes are Members pursuing to support the development of green hydrogen 
and renewable energy?  
5.2.  These discussions were consoli dated into an outcome document ( INF/TE/SSD/W/29/Rev.2 ) 
that provides a compilation of Member experiences and considerations regarding the design and 
transparency of subsidies in both covered sectors. Members consider this compilation to  be a living 
document that w ill continue to be updated as discussions progress.  
5.1  Agricultural subsidies  
5.1.1   Environmental effects and transparency  
Presentations  
Food and Agriculture Organisation (FAO) – Environmental effects of agricultural subsidies . 
Noted the importance of differentiating between different types of support and subsidies, as not 
all types of support could be considered subsidies and not all subsidies were recorded in the 
metrics of support. It further noted the necessity of considering  the impacts of harmful subsidies 
and taking account of three dimensions: the condition of the country, instruments such as 
payments to inputs, as well as the products themselves.  
Paraguay – Good agricultural practices and environmental programmes under p aragraph 12 of 
Annex 2 of the Agreement on Agriculture (AoA).  
Assessed all questions raised in the Committee on Agriculture (CoA) for environmental 
programmes included in the last 10 years to identify concerns raised by Members regarding 
notified programme s. Further, Paraguay proposed to elaborate a questionnaire similar to the 
Dialogue on Plastics Pollution (DPP), in which Members could provide more information on their 
measures, their environmental objectives, identify trade -offs between environmental obj ectives, 
and provide more information on the results of environmental measures.  
WTO Secretariat – Agro-environmental support measures notified in the CoA and accessed 
through the updated Agriculture Information Management System (AG -IMS).  
Data available  under  the AG -IMS suggests that e nvironmental payments under paragraph 12 of 
the Green Box amounted to an annual average of around USD 35 billion over recent years, with 
the top eight Members accounting for 99% of payments provided in 2018. Certain 
agro-environmental support payments would fall under other categories and present a 
disaggregation challenge. The se include, inter alia , payments not meeting the conditions of 
paragraph 12 of the Green Box; policies other than direct payments such as provision of general 
services associated with environmental programmes; and direct payments on environmental 
grounds such as decoupled income support, structural adjustment assistance via resource 
retirement programmes, and relief from natural disasters.  
OECD – Measurement of agricultural support, effects of agricultural support on the environment, 
and reform options and trends.  
Most recent annual report monitoring support policies in 54 countries suggested that agricultural 
support had been increasing and that the most market -distortive support measures ( market 
price support, output subsidies, and variable input subsidies) were also potentially the most 
harmful to the environment, including in terms of GHG emissions and nitrogen balance. Findings 
also indicated that agri -environmental payments could have positive environmental impacts if 
spatially targeted and based on environmental performance.  Options and trends in reform 
policies include reducing potentially most environmentally harmful support and redirecting  or 
introducing subsidies to improve the environmental performance of the agricultural sector.  INF/TE/SSD/R/21  
 
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  Presentations  
Secretariat of the Convention on Biological Diversity (CBD) – Harmful subsidies and 
positive incentives under the Kunming -Montreal Global Biodiversity Framewor k (GBF).  
Elaborated on Target 18 of the GBF providing for the identification, elimination, phasing  out, or 
reform of incentives (including subsidies) harmful to biodiversity, as well as  other key legal 
provisions  of the GBF addressing considerations for na tional circumstances and obligations of 
conservation and sustainable use of components of biodiversity. The presentation also mentioned 
that work was envisaged to further develop the monitoring framework for the GBF.  
5.3.  Members noted the importance of moving away from trade distortive and environmentally 
harmful subsidies while acknowledging the complexity of  identifying  and isolating  the environmental 
impacts of agricultural subsidies . It was suggested to leverag e the expertise and output s of several 
international organizations such as FAO, the World Bank, the OECD, and the International Food 
Policy Research Institute (IFPRI) which were working on this issue.  
5.4.  Discussions on assessing the impacts of agricultural subsidies covered numerous aspects 
including, accounting for impacts in the subsidizing country as well as externalities in third countries; 
holistic analysis of environmental, social (food security) and economic (development) aspects ; and 
the consideration of a broad scope of envir onmental impacts , including regarding  carbon emissions, 
soil, water and biodiversity.  The importance of cooperation, experience sharing, and a collaborative 
approach was underscored.  
5.5.  Regarding the issue of data availability and transparency to identify in formation gaps, a number 
of Members noted the importance of quantifying environmental effects to evaluate the benefits of 
climate -smart agricultural practices;  better analytical modelling to capture the impacts of different 
types of subsidies; robust monit oring systems including through the CTE and notifications under 
Green Box of AoA; and collaboration with environmental stakeholders for data collection and impact 
assessments using science -based, transparent measurement tools. Some Members recalled the 
existing evidence of environmental impacts of agricultural subsidies and called for deeper 
engagement with this evidence whil e also supporting additional research.  
5.6.   Members discussed the role of agricultural subsidies in influencing behavioural changes in 
support of environmental sustainability, and several proposed repurposing agricultural support, 
encouraging farmers to shift to more sustainable practices through the use of subsidies to incentivi ze 
positive environmental impacts, either through introduction  of performance requirements to existing 
support programmes or through increasing funding for new initiatives.  
5.1.2   Experience sharing on subsidy design  
Presentations  
Brazil  – Subsidies and environmental sustainability of agriculture : some drivers, indicators and 
results.  
Use of subsidies to support sustainable agriculture initiatives, including the National Alcohol 
Program, the Agriculture Climate Risk Zoning policy, and the Low Carbon Emission Agricultural 
Plan. These policies had resulted in increased productivity yield, negative correlation between 
land use, land -use change, and forestry (LULUCF) and agriculture, and reduced subsidies in the 
long term.  
European Union ( EU) – Environmental sustainability in the EU's Common Agricultural Policy 
(CAP).  
The EU CAP saw a shift towards protecting the climate while reforming policy , which was reflected 
by reduced greenhouse gas emissions, decreased use and risk of chemical pesti cides and sales 
of antimicrobial agents, and increased organic farming.  
Japan – Approach towards incentivizing sustainable agriculture.  
Sustainable agriculture is incentivized though a  combination of policies while ensuring policy 
coherence and taking int o account natural, social and economic conditions. For instance, p olicies 
aimed at mitigating negative environmental effects  of subsidies such as mandatory  reference 
levels for agricultural support program mes and promoti ng the use of good agriculture pract ices INF/TE/SSD/R/21  
 
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  Presentations  
and related certifications for its farm s; policies aimed at  enhanc ing the positive environmental 
impacts through subsidies  such as  support  for R&D (climate resilient crops) and environmentally 
friendly farming activities through, inter alia , direct pa yments ; ensuring policy coherence by 
enacting cross -sectoral pollution standards for all sectors.  
Uruguay  – Trade and environment: economic incentives in the agricultural sector with 
environmental objectives.  
Two domestic incentive programmes (tax reductions) aimed at forestry conservation that were 
enacted over 30 years ago had resulted in an increase in forest cover and the subsequent 
creation of a carbon sink. Uruguay highlighted that the positive environmen tal impact of these 
policies was unintended from a policy design perspective. This indicated the complexity of 
effectively assessing the long -term environmental impacts of subsidies, whether positive or 
negative.  
5.7.  Members  discussed the importance of  identi fying and evaluat ing environmentally harmful 
subsidies and reorient ing them towards environmentally positive ones , including agricultural 
subsidies  linked to biodiversity preservation and limiting greenhouse  gas emissions . Members noted 
the value of sharin g country -specific program mes and experiences in understanding Members' 
unique challenges and associated solutions ; a few Members shared their experiences  – for instance, 
using quantitative models to evaluate environmental impacts of agricultural policy; incentives for 
providing environmental goods and services like habitat restoration, improved water quality, natural 
flood management, and woodland creation . A stakeholder suggested focusing on harmful agricultural 
practices and targeti ng subsidies that support them.  
5.8.  A number of Members advocated for a holistic approach that balances the environmental effects 
and trade distortive impacts of subsidies , taking into account non -trade objectives such as food 
security and development as well as the potential externalities arising in third countries. Discussions 
covered,  inter alia , the benefits of subsidy program mes conditional on fulfilment of environmenta l 
criteria ; comprehensive impact assessments; transition finance and incentives to encourage private 
sector investment; the role of technology, innovation, and infrastructure including technology 
transfer ; supporting practices that contribute to more produ ctive, inclusive, resilient, and sustainable 
agricultural systems; and using the AoA and its Green Box as a policy tool.  
5.2  Subsidies related to the transition to a low -carbon economy  
Presentations  
IISD – Tracking public financial flows from fossil fuels to clean energy via the "Energy Policy 
Tracker."  
An initiative of 29 expert organizations which covered policies affecting energy production and 
consumption for 38 economies. Underscored the need to prioriti ze clean energy investments and 
reforms in recovery plans, and to balance immediate crisis responses with longer term 
sustainability objectives.  
China – Green subsidy policy. 
Promoting the green and low -carbon transition by focusing on the practice of com petitive 
allocation of fiscal funds , which was introduced as an innovative approach for efficient and 
equitable distribution of funds. The presentation provided different examples of green subsidies 
policies that were considered important to support China' s goals of carbon peaking and carbon 
neutrality, and for the green transformation of its economy more generally.  
European Union – Policy support for the green transition.  
The EU Green Deal Industrial Plan included four pillars: predictable regulations; increased 
investment for clean tech production; skills enhancement; and open trade. The EU's state aid 
framework and guidelines ensured support for climate and environmental initiatives while 
adhering to WTO compatibility. The WTO's role in su pporting climate neutrality would be through 
disciplines on subsidies, promoting green transition in a manner that minimized trade distortions, 
and as a forum for multilateral discussions on trade aspects of the green transition.  INF/TE/SSD/R/21  
 
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  Presentations  
Canada  – Plan for affordable energy, good jobs, and a growing clean economy.  
Proposed investments in clean growth of almost USD  21 billion over the next five  years and 
focused on securing global investment in the clean economy, with significant  funding allocated 
for clean e lectricity, clean economy growth, resilient infrastructure, and technological innovation. 
Three tiers of federal financial incentives (targeting programming, strategic financing, and 
investment tax credits), underpinned by carbon pollution pricing and regu latory frameworks, 
aimed at accelerat ing private investment.  
Switzerland  – Energy Strategy 2050.  
Three strategic objectives: (i) increasing energy efficiency in buildings, mobility, industry and 
appliances, which is financed, inter alia , through earmarki ng of the CO2 tax and the electricity 
grid surcharge, respectively; (ii) increasing the use of renewable energy through promotion 
systems financed through surcharges on network costs as well as support measures like one -
time investment aids, feed -in premiu ms and auctions; and (iii) withdrawing from the use of 
nuclear energy through a step by -step approach prioritizing safety and restricting the issuance 
of new licences.  
Australia  – Clean hydrogen initiatives . 
National Hydrogen Strategy providing a framewor k for government and industry to work together 
and support all production pathways for clean hydrogen. The Hydrogen Headstart initiative aimed 
at accelerating the development of Australia's hydrogen industry and helping Australia connect 
to new global hydr ogen supply chains; building on the regional hydrogen hubs initiative bringing 
together hydrogen users, producers and exporters; and the guarantee or origin scheme to 
promote transparency as well as climate finance commitments.  
United States  – US clean hydrogen strategy.  
Included targeting industrial applications, transportation and power sector applications; reducing 
costs associated with production, onboard storage, delivery and dispensing; focusing on regional 
clean hydrogen hubs; and crea ting economic benefits. The presentation discussed the incentives 
under the Inflation Reduction Act (IRA), as well as the "Hydrogen Shot" -"111" initiative, which 
aimed to reduce the cost of clean hydrogen to USD 1 per 1 kg in 1 decade.  
5.9.  Members  noted  that consistency with WTO rules was essential when designing subsidies, and 
emphasized the importance of transparency and data availability in supporting greater predictability 
and greener economies . In this context, several Members stressed the need to improve  compliance 
with notification requirements under the Agreement on Subsidies and Countervailing Measures  (SCM 
Agreement)  and also encouraged exchanges in TESSD and the CTE as well as inclusion of relevant 
information in TPRs.  
5.10.   Sharing of experiences and best practices was encouraged to enable Members to maximize 
environmental benefits while minimizing negative trade effects . Some practices included using a 
combination of regulatory measures and incentives to promote private investments in sectors vital 
to the green transition; ensuring support measures are non -discriminatory; and preference for 
market -pull incentives over subsidies that directly encourage manufacturing capacity. A number of 
Members also noted the need to progressively scale  down subsidies; ensure subsidy program mes 
are proportional and targeted; comprehensively study the effects of subsidy program mes including 
in third countries ; and ensure secure supplies of clean energy and develop energy storage capacity.  
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