The world cannot continue
with "business as usual" and there
is a profound need for a successful conclusion
to the current negotiations on both climate
change and trade opening.
26 June 2009 - The WTO/UNEP
report on "Trade and Climate Change"
published today examines the intersections
between trade and climate change from four
perspectives: the science of climate change;
economics; multilateral efforts to tackle
climate change; and national climate change
policies and their effect on trade.
The WTO and UNEP are
partners in the pursuit of sustainable development
and this report is the outcome of collaborative
research between the WTO and UNEP.
"With a challenge
of this magnitude, multilateral cooperation
is crucial and a successful conclusion to
the ongoing climate change negotiations
is the first step to achieving sustainable
development for future generations,"
said WTO Director General Pascal Lamy and
UNEP's Executive Director Achim Steiner.
Both Steiner and Lamy
urge the international community to seal
an equitable and decisive deal at the crucial
UN climate convention meeting in Copenhagen,
Denmark, in December 2009. They also urge
nations to conclude the Doha trade round
which includes opening trade in environmental
goods and services, a complementary track
towards reducing greenhouse gas emissions
to scientifically-defensible levels.
The scientific evidence
is now clear that the Earth's climate system
is warming as a result of greenhouse gas
emissions which are still increasing worldwide,
and will continue to increase over the coming
decades unless there are significant changes
to current laws, policies and actions. Although
freer trade could lead to increased CO2
emissions as a result of raising economic
activity, it can also help alleviate climate
change, for instance by increasing the diffusion
of adaptation and mitigation technologies.
The global economy is
expected to be affected by climate change.
Sectors such as agriculture, forestry, fisheries,
tourism and transport infrastructure which
are critical for developing countries are
more specifically affected. These impacts
will often have implications for trade.
Opening up trade and
combating climate change can be mutually
supportive towards realizing a low carbon
economy, the new report says. Contrary to
some claims, trade and trade opening can
have a positive impact on emissions of greenhouse
gases in a variety of ways including accelerating
the transfer of clean technology and the
opportunity for developing economies to
adapt those technologies to local circumstances.
Rising incomes, linked with trade opening
can also change social dynamics and aspirations
with wealthier societies having the opportunity
to demand higher environmental standards
including ones on greenhouse gas emissions.
In addition there is evidence that more
open trade together with actions to combat
climate change can catalyze global innovation
including new products and processes that
can stimulate new clean tech businesses.
National policies, from
traditional regulatory instruments to economic
incentives and financial measures, have
been used in a number of countries to reduce
greenhouse gas emissions and to increase
energy efficiency. The report highlights
the effects that this complex web of measures
might have on international trade and the
multilateral trading system. In recent years,
there has been a proliferation of technical
requirements (voluntary standards and labeling)
related to climate-friendly goods and energy
efficiency. Likewise, financial support
programmes for the use of renewable energies
have also increased recently.
The report also reviews
extensively two particular types of pricing
mechanisms that have been used to reduce
greenhouse gas emissions: taxes and emissions
trading systems. Incidentally, the report
reflects the debate that is taking place
on policies aimed at preventing carbon leakage
and protecting competitiveness, including
on border measures.
Overall, the report
highlights that there is scope under WTO
rules for addressing climate change at the
national level. However, the relevance of
WTO rules to climate change mitigation policies,
as well as the implications for trade and
the environmental effectiveness of these
measures, will very much depend on how these
policies are designed and the specific conditions
for implementing them.
For further information please contact:
WTO
Anoush der Boghossian, WTO Press officer
Nick Nuttall, UNEP Spokesperson
