International Trade and Environment

Course Contents:

1. International Trade and environment
2. UNCTAD´s Climate Change Programme
3. The WTO and the Environment
4. European Union environment policy
5. Ecological marketing

Available Languages:

Summary:

The international consensus is growing that the planet is facing irreversible climate change unless action is taken quickly.

The EU has already formulated a clear response in the shape of an integrated energy and climate change policy, a commitment to cut emissions of ‘greenhouse’ gases by at least 20 % by 2020, and a promise to take the lead in international negotiations to adopt even more ambitious targets. This will help to prevent the world’s temperatures rising by more than 2 °C, the level which is increasingly thought by scientists to be the point of no return. To achieve this goal, we need to use energy resources more sustainable and take switching to more renewable forms of energy, capturing and storing carbon dioxide and reversing deforestation more seriously. This may involve a change in our lifestyles, but need not jeopardise our standard of living, or those of future generations.

Climate change is one of the greatest threats facing the planet. If the Earth’s temperature rises by more than 2 °C above pre-industrial levels, climate change is likely to become irreversible and the long-term consequences could be immense. Low-lying areas of the Earth, including large parts of many European countries, could eventually disappear under the rising sea levels. Moreover, in many parts of the world there would not be enough fresh water to go round. Extreme weather events causing physical and economic damage would become more frequent. Economies could go into decline from the cost of dealing with a different climate.

The Earth’s average temperature was largely stable for 10 000 years until the Industrial Revolution. Since 1850, the first date from which there is consistent accurate measurement, it has risen by 0.76 °C. Unless we act, it is likely to rise by a further 1.8–4.0 °C this century and possibly by as much as 6.4 °C, according to an international panel of scientists convened by the United Nations (UN). The race is on to prevent the world reaching what is believed to be the tipping point, a 2 °C increase. It will most likely be lost if global emissions are not stabilized by around 2020 at the latest and then cut to around half of their 1990 levels by 2050. (Source EU).

UNCTAD´s Climate Change Programme focuses on the trade and economic aspects of climate policies, biofuels and the Kyoto Protocol´s clean development mechanism (CDM). Through exchanges of information, analytical studies, expert meetings and workshops, the Branch:

• leads initiatives to assess the trade and development implications of climate change policies,
• helps promote investment and secure development gains in in developing countries under the Clean Development Mechanism of the Kyoto Protocol;
• provides support for governments, corporations and non-governmental organizations in assessing biofuels potential in developing countries, and
• supports compatibility between climate policy and trade rules

The WTO and the Environment

The WTO has no specific agreement dealing with the environment. However, the WTO agreements confirm governments’ right to protect the environment, provided certain conditions are met, and a number of them include provisions dealing with environmental concerns. The objectives of sustainable development and environmental protection are important enough to be stated in the preamble to the Agreement Establishing the WTO. The Doha Development Agenda includes negotiations on trade and environment and some tasks assigned to the regular Trade and Environment Committee.

The negotiations focus on three main themes:

1. the relationship between the WTO rules and multilateral environmental agreements (MEAs)
2. the collaboration between the WTO and MEA secretariats; and
3. the elimination of tariffs and non‑tariff barriers on environmental goods and services

The European Union and the environment

Protecting the environment is essential for the quality of life of current and future generations. The challenge is to combine this with continuing economic growth in a way which is sustainable over the long term. In the face of climate change, this challenge is becoming even more acute. European Union environment policy is based on the belief that high environmental standards stimulate innovation and business opportunities, and that economic, industrial, social and environment policies must be closely integrated.