Day 7 at Climate Talks: The Role of the WTO in supporting climate change mitigation and adaptation efforts

L-R: Vesile Kulaçoğlu, WTO; Muthukumara Mani, World Bank; and Doaa Abdelmotaal, WTO.

Vesile Kulaçoğlu, World Trade Organization (WTO), described the intersection between the multilateral trading system and climate change mitigation efforts. She highlighted aspects of different approaches proposed by WTO member countries for the liberalization of trade in “environmental goods,” adding that consensus has yet to be achieved on the scope of this term. She described “list-based,” “project-based” and “integrated” approaches, noting difficulties associated with “dual use” products, which could be used for non-environmental purposes.

Kulaçoğlu highlighted a recent EC/US proposal that would give priority to climate change mitigation as an environmental objective, and liberalize trade in climate-friendly products and services by 2013. Commenting on criticism that biofuels should have been included in this list, she noted that ethanol is classified as an agricultural good.

Muthukumara Mani, World Bank, said there are important opportunities for transferring environmentally-friendly technologies to developing countries that will be critical to realizing emission reductions. He reported on a World Bank study that looked at the potential for removing tariffs on technologies associated with “clean” coal, wind, solar, and energy efficient lighting. He noted that developing countries are also large exporters of clean technologies.

Doaa Abdelmotaal, WTO, described potential linkages between the WTO’s agenda and efforts to combat climate change. She said there is a range of opinions as to whether WTO rules can be used to offset competitive disadvantages created by Annex I’s domestic regulations aimed at curbing emissions.

She then discussed how WTO’s “toolbox” could be used to tackle climate change, including rules on subsidies and the principle of non-discrimination. Regarding the carbon footprint of internationally-traded products, she stressed the need to take into consideration the total life cycle of a product, and urged a case-by-case empirical analysis. She cautioned against a unilateral approach that could lead to a “spaghetti bowl” of trade measures.

Participants discussed: the inability of the free market to address climate change; the WTO’s environmental track record; fossil fuel subsidies; and the ability of the Agreement on Trade-Related Aspects of Intellectual Property Rights to deliver the benefits of environmentally-safe technologies to developing countries.

More information
http://www.wto.org
http://www.worldbank.org

Contacts
Vesile Kulaçoğlu <vesile.kulacoglu@wto.org>
Muthukumara Mani <mmani@worldbank.org>
Doaa Abdelmotaal <doaa.abdelmotaal@wto.org>

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