   
  
G/TBT/GEN/354  
 
27 June 2023  
(23-4382) Page: 1/2 
Committee on Technical Barriers to Trade    
 
DDG PAUGAM'S REPORT TO TBT COMMITTEE ON THE TRADE FORUM  
FOR DECARBONIZATION STANDARDS EVENT  
COMMITTEE ON TECHNICAL BARRIERS TO TRADE – 21-23 JUNE 2023  
1.  Excellencies, ladies, and gentlemen.  Good afternoon. Thank you, Madame Chair, and the TBT 
Committee, for welcoming me to report on the main takeaways from the Trade Forum for 
Decarbonization Standards  in the Steel Sector , an event we organized on 9 March, and a 
follow -up session  held last week during WTO's Trade and Environment week.  
2.  We brought together WTO Mem bers with standard -setting bodies and the largest steel making 
producers in a multi -stakeholder event to spur dialogue on the role of coherent and transparent 
standards in accelerating the global scale -up of low -carbon technologies and avoiding trade frict ions. 
We had more than 500 participants in person and online from all over the world.  
3.  I committed that we report back to several WTO bodies and initiatives whose work relates to 
standards, regulations, and climate change. We have engaged the CTE and TESSD  earlier this year. 
I understand the TBT Committee has been increasingly addressing challenges around sustainability, 
the environment, and climate change. So, I am pleased to be here with you today as the Committee 
plays a central role on the topic.  
4.  Our T rade Forum event helped us to identify three things – the main challenges and opportunities 
for the industry, the key considerations for international cooperation, and potential ideas on how the 
WTO could help.  
5.  On the main challenges, we need to make sure  that standards are comparable and transparent. 
Today companies must respond to multiple decarbonization methodologies and verification 
processes, as there are no common standards to measure and verify carbon emissions. Too many 
inconsistent standards are becoming a source of confusion and creating market uncertainty, higher 
costs, supply chain inefficiencies, and transparency problems. Our Information Note published last 
December mapped out at least 20 different standards (and growing) – with different und erlying 
methodologies, scopes, and boundaries. There is a need for co -existence of different standards, in 
different regions and for different purposes, but we need to make sure that, at the very least, these 
are transparent and comparable.  
6.  We identified o pportunities, and I want to flag a "low -hanging fruit." We know many definitions 
of "green steel" and normative emissions performance thresholds will exist. But all stakeholders 
agree that all countries and all companies should count carbon emissions in th e same way. If 
standard -setting bodies can make scope and boundaries interoperable between their measurement 
standards, this could be a win for trade and climate. The underlying methodologies must talk to each 
other, and data should flow seamlessly with a minimum of transaction costs.  
7.  Second, for international cooperation to work, we need to consider the perspectives of different 
upstream and downstream players in the iron and steel value chain and SMEs. Different regions will 
follow their unique decarboniz ation pathways considering national circumstances, Nationally 
Determined Contributions (NDCs), market requirements, and access to relevant low -emissions 
steelmaking inputs – like scrap, renewable electricity, or green hydrogen. So, for international 
cooper ation to work, we need to consider the perspectives of different upstream and downstream 
players in the iron and steel value chain and SMEs. International collaboration must build trust and 
understanding around low -emissions steel definitions and labels to  avoid false claims or 
greenwashing.  G/TBT/GEN/ 354 
 
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  8.  Finally, there is a role for the WTO and stakeholders identified a range of potential opportunities 
where the WTO could help support a level playing field for steel decarbonization.  
9.  The WTO, through its different bodie s, was recognized as an important forum for multilateral 
cooperation and dialogue between Members on how steel decarbonization standards can impact 
trade. Members could discuss approaches and best practices and the technicalities of calculating 
embedded em issions. Members could also share information about their development and use of 
related standards, technical regulations, and conformity assessment procedures. To some extent, 
our information session last week, which included the participation of six Memb ers sharing their 
national experiences, was an occasion to exchange along these lines.  
10.  Stakeholders also suggested that the WTO could promote further its framework amongst the 
various standards bodies and initiatives developing decarbonization standards in  the steel sector. 
For instance, before our March event, bodies involved in developing decarbonization standards were 
unaware of the TBT Six Principles. Raising awareness of these principles could enhance transparency 
in standards development, strengthen g rowing developing country participation, and promote 
coherence while avoiding duplication of efforts.  
11.  We used the opportunity at both events to clarify that WTO is not a standard setting body, nor 
does it pick winners and losers amongst standards.  
12.  The broa der industry also called for more coherence, equivalence, and mutual recognition in 
decarbonization standards to manage costs and provide certainty for green investment. From what 
we heard, they see the WTO's role as vital so that they can continue to simu ltaneously trade and 
decarbonize – whether in developed or developing markets.  
13.  The Secretariat will continue to promote strategic dialogue on trade in decarbonization 
standards in the steel sector and I want to flag two key milestones in the months ahead.  
14.  At the WTO Public Forum , in September the WTO will organize a plenary session on "Trade and 
Levelling the Playing Field for Steel Decarbonization"  bringing together our Director General with 
senior private sector leaders in what we aim to be a nother opportunity for public -private dialogue 
on the topic.  
15.  Looking towards COP28, hosted by the UAE in December, we are working with the UAE Climate 
Change Envoy's Office and the Ministry of the Economy to highlight steel decarbonization standards 
as par t of the Trade segment of the COP28 Presidency program. In this context, we are working 
closely with existing initiatives, such as the Steel Breakthrough Agenda, that the COP28 Presidency 
is championing to ensure synergies and promote even greater inclusiv ity. 
16.  We would be happy to support further opportunities and occasions for Members to exchange on 
these topics, inside or outside of our committees, so don't hesitate to reach out to us.  
17.  Now, Madam Chair, based on these takeaways from our events, and subse quent feedback from 
stakeholders, I think I could by posing two questions for the WTO Membership to consider going 
forward.  
• First: How can we continue to mobilize the WTO's convening power most effectively in this 
area of decarbonization standards, especia lly with the private sector?  
• Second: How can we best facilitate exchanges between Members on these issues?  
18.  I will leave these questions with the Membership and look forward to hearing your views and 
feedba ck today and in the future.  
 
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