On 16 December 2011, at the occasion of the eight ministerial conference of the WTO in Geneva, ICTSD organised a high-level lunch addressing the urgent need to switch from fossil based to sustainable energy as a key measure for addressing climate change, and how this shift could be promoted using trade policies. Discussions revolved around various options and vehicles to do this, including through negotiating a sustainable energy trade agreement (SETA).

Renate Christ, Secretary of the IPCC highlighted issues such as the current state of climate change, current and expected levels of emissions, the contribution of energy supply and use to carbon emissions, and the
mitigation efforts required to stay below a 2 degree temperature increase. In particular, she highlighted the role of renewable energy in this effort.

Ricardo Melendez-Ortiz Chief Executive of ICTSD then outlined the relevance of trade and trade-policy in facilitating the rapid scale up of sustainable energy in the context not only of the environmental challenge but also other key sustainable development challenges such as providing energy access to millions of people through low-carbon means.

The lunch sparked a lively debate on the relevance and interplay of trade and sustainable energy policies. Participants encouraged ICTSD to continue its momentum on the initiative and to provide informed input through research and dialogue to policy makers.

Questions on the consistency with WTO provisions have been frequently raised as sustainability criteria and implementation measures were defined and adopted under the RED and FQD. However, no thorough analysis has been carried out on this topic. The objective of the worksho is to engage in an informed and constructive discussion on the technical and legal arguments surrounding the compatibility of the EU sustainability requirements with international trade rules. Special attention will be given to recent WTO jurisprudence.

Speakers include Andrew Shoyer, chair of Sidley Austin’s international trade and dispute resolution practice; Dr. Alan Swinbank, Emeritus Professor of Agricultural Economics at Reading University; Malena Sell, Senior Programme Officer, Environment and Natural Resources, ICTSD; and high-level representatives from the European Commission and the European Parliament.

The objective is to provide an opportunity to discuss what a transition to a green economy means for trade in the ECE region, identify key trade opportunities and challenges for the region, and contribute to the Rio+20 discussions in the region.

Governments, regional organizations, civil society groups, intergovernmental organizations, and other stakeholders in the region, will exchange perspectives on key issues about trade in a green economy. Presentations by panellists will be followed by an open discussion.

A summary of the event can be found here: Trade and Green Economy Side Event Summary

Agenda

13.15-13.30 Welcome remarks by UNECE/FAO, ICTSD and UNEP

13.30-14.15 Presentations by panellists

Legality verification & beyond: challenges and opportunities for timber trade. Ben Gunneberg, PEFC

What opportunities exist in the Eastern Europe, Caucasus and Central Asia region in the growing market for organic agriculture exports? Asad Naqvi, UNEP Economics and Trade Branch

The potential of the green services sector. Patricia Molano, Sustainable Systems

14.15-14.45 Open discussion kicked off by Olga Ponizova, EcoAccord (Russia)

For any additional information about the event please emailMr. George Riddell at griddell@ictsd.ch.

All the UNECE RPM meeting documents can be found here: http://www.unece.org/env/sustainabledevelopment/rpm2011/rpm2011.html

By invitation.

The globalized nature of activities that drive trade and climate change has evinced a need to address the issues at the international level, yet no formal institutional process exists to provide information or exchange of views on the linkages. The World Trade Organization and the United Nations Framework Convention on Climate Change have mostly circumvented direct dealings with these inter-linkages. Yet the rising tide of issues and urgency require that member states and other relevant parties begin to address the issues head on.
The space to generate ideas and solutions as well as address challenges in either forum is nearly non-existent, and the issues are often controversial. Nevertheless, there is currently some movement, albeit slow and awkward, to open a space for dialogue and decision.

The purpose of this session is to get a sense of the challenges that the development of a sustainable energy supply are likely raise in terms of WTO rules, to raise awareness of these issues with the trade community in and beyond Geneva, and to acquire input in order to move forward with an integrated framework for sustainable energy in the WTO.

The event will feature clean energy experts and representatives from the private sector, academia and government on the state of play of clean energy support (including production subsidies and feed-in tariffs), climate-friendly goods and services, and other issues involved in the development of a sustainable energy supply.

Discussion with the public is set to fuel creative thinking on potential multilateral responses to existing challenges regarding the issue of energy in the WTO.

The following questions will be raised:

● Are current WTO rules supportive of clean energy development?

● How can current and future trade regulation encourage clean energy development?

● How would a framework agreement on energy in the WTO fit with other WTO Agreements?

● How do current WTO disputes on renewable energy support influence the political economy of negotiations on this topic?

The reduction or removal of trade restrictions affecting transport-related EGs supports the deployment of climate-related technologies and allows for easier and less costly access to equipment needed to make transport more sustainable. A review of a range of technology options for reducing energy use and emissions in transport reveals that negotiations on EGs may, in theory, be relevant for the implementation of only some of these technology options: certain alternative fuel vehicles (AFVs), certain components used in AFVs (such as batteries used in electric cars) and alternative fuels (such as biofuels). With regard to non-technology options, some WTO members have proposed that specific types of equipment used in public transport and bicycles could be included in the negotiations (with a view to facilitating shifts to more sustainable modes of travel).

In order to properly understand the possible contribution that the environmental goods and services (EGS) negotiations in the WTO could make to sustainable transport strategies, this presentation addresses a number of questions: What trade issues are involved in the deployment of climate-related transport technologies? What EGs can be identified in the transport sector? Do tariffs and NTBs affect international trade in these products? Will trade liberalisation alone support the deployment of climate-friendly technologies and products to developing countries? What are the key issues to be considered by governments in assessing the pros and cons of liberalising trade in specific EGs? Also discussed in this presentation are issues related to tariff classifications.

Biofuel production, markets and trade are growing globally. While this provides opportunities for sustainable development and developing country exports, challenges abound, both with regards to unintended side effects of biofuel production, and market development and forecasting in this highly regulated and contested area.
The EU is a major player in the area of biofuels. The EU Renewable Energy Directive (RED), under which member states are required to derive ten percent of their transport fuels from renewable sources by 2020, came into effect at the end of 2010. In order for such biofuels to fulfill the target, they must fulfill certain sustainability criteria. Notably, they must be at least 35 percent more carbon efficient than fossil fuels, and cannot be derived from cleared forest or wetlands.
Some countries consider these criteria to run counter to WTO law, and have said they may consider challenging them within the dispute settlement system. Others argue that they are fully legitimate, as they apply to domestic and imported biofuels alike.
The purpose of the current event is to provide an overview and discussion with regard to the current status of biofuels trade and sustainability criteria in the EU, including ongoing efforts to deal with the issue of indirect land-use change, which is not included in the current criteria.
The views of both importers and exports of biofuels will be heard, leading to what we hope will be a stimulating discussion.