  
INF/TE/SSD/R/8  
 
14 July 2022 
(22-5371) Page: 1/4 
Trade and Environmental Sustainability Structured 
Discussions  Original : English  
 
  
WTO TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS  
INFORMAL WORKING GROUP ON ENVIRONMENTAL GOODS AND SERVICES  
HELD ON 17 MAY  2022 (10:00 -13:00)  
Summary of discussions1 
1  Introductory remarks by the facilitators  
1.1.  The facilitators of the Working Group on Environmental Goods and Services, Carlos Guevara 
(Ecuador) and Helga Helland (Norway) , introduced the meeting by highlighting elements contained 
in the Ministerial Statement  of December 2021 in which Members agreed to deepen discussions on 
environmental goods and services (EGS) , including by addressing supply chain, technical and 
regulatory elements . Furthermore, they  recalled the guiding questions for the working group 
conta ined in the Work Plan for 2022 , which related to  how trade in EGS could help achieve 
environmental and climate goals ; opportunities , best practices,  and possible approaches to promote 
and facilitate trade in EGS to meet such goals ; and challenges and opportunities for developing 
countries and LDCs to engage and benefit in trade in EGS.   
2  Members' priorities regarding environment and climate goals  
• What are Members' priorities in terms of objectives and sectors to be discussed in the 
Working Group?  
• How c an trade in environmental goods and services aid in achieving environment and 
climate goals? (Guiding question in TESSD Work Plan  2022 (INF/TE/SSD/W/17/Rev.1 ) 
2.1.  Seventeen Members2 shared their priorities in terms of objectives and sectors to be discussed 
in the Working Group on Environmental Goods and Services, and their views on how trade in EGS 
could achieve climate and environmental goals.  
2.2.  Objectives related to climate change mitigation and adaptation were mentioned most 
frequently by Members. Members particularly drew attention to the contribution that EGS could make 
in supporting the achievement of multilateral environmental agreements suc h as the United Nations 
Framework Convention on Climate Change  (UNFCCC ) and the Paris Agreement, and to facilitating 
the dissemination and uptake of innovative technologies for the climate transition. Other objectives 
mentioned, inter alia , included the transition to a circular economy, clean air and clean water , 
sustainable management and protection of water and marine resources, and protection of 
biodiversity and ecosystems.  
2.3.  To advance the discussions, several Members expressed support for identifying environmental 
objectives first  and then targeting related  EGS, as well as  for a staged  or phased approach where 
Members would discuss objectives sequentially. Members also suggested building a common 
understanding of definitional elements as a first step, which could occur through compiling previous 
discussions and evaluating e merging changes in practices. Some Members suggested taking into 
 
1 This summary, prepared and circulated under the facilitators ' responsibility, is being shared with a 
view to providing delegations with a record of the discussions. It provides a non -exhaustive, illustrative review 
of the issues addressed by Members at the meeting.  
2 Australia, Canada, Costa Rica, Ecuador, European Union , Iceland, Japan, Republic of Korea, Maldives, 
New Zealand, Norway, Paraguay, Saudi Arabia, Singapore, Switzerland, United Kingdo m, and United States.  INF/TE/SSD/R/8  
 
- 2 - 
 
  account emissions and environmental impacts throughout the supply chain for the determination of 
environmental goods. For example, discussions could cover production standards that would incl ude 
greenhouse gas emissions throughout the supply chain, and that a good could be considered "green" 
if it had lower emissions and reduced resource intensity throughout its productive lifecycle , thereby 
leading to a more environmentally  positive outcome. Furthermore, such approaches could also 
evaluate opportunities for reuse, remanufacture, refurbishment, or recycling at end -of-life.  
2.4.  Several Members suggested that advancing discussions on environmental services should 
follow a parallel track to environme ntal goods. Further, this could begin with mapping sectors and 
subsectors of services that could contribute to environmental goals, thereby building on discussions 
in the Committee on Trade in Services – Special Session ( CTS-SS) and avoiding duplicating ef forts. 
Other Members instead suggested that discussions on environmental services should occur  with 
those on environmental goods, in a manner in which  they would be mutually supportive and 
contribute to achieving environmental objectives. For example, it was suggested to distinguish 
between  services intrinsically linked to  addressing climate change challenges and services which are 
linked to climate -friendly goods . Furthermore,  several Members suggested that discussions on 
environmental services should encompass a broader definition than that included under division 94 
of the UN 's Central Product Classification  (CPC 94 ).  
2.5.  Members also highlighted that di scussions on EGS cover ed a broader scope of issues than just 
tariff liberalization, including non -tariff measures , regulatory cooperation, good regulatory practices, 
transfer of technology and capacity building.  It was noted by several Members that barrier s to the  
deployment of new technologies and goods should be removed at every stage of the product cycle  
to facilitate their dissemination in a manner that would also be inclusive for developing countries. A 
Member  suggested  that Members, in line with their UNFCCC commitments, t ook further actions 
related to climate finance, insurance and technology transfer  to meet the needs of developing 
countries. Another  Member also noted that discussing and facilitating trade in sustainably sourced 
products was of key interest to developing Members. A Member proposed the organization of a 
workshop on BioTrade to showcase  experiences where international trade contributes to biodiversity 
conservation and the protection of ecosystems.  
2.6.  On the benefits of trade in EGS, a Member  noted that trade could lower the costs of EGS, thus 
accelerating their uptake around the world. Tra de could also support technology transfer and 
innovation related to EGS.  While a number of Members indicated their intention to work towards  
further liberalization in EGS trade, one Member suggested that , given the different interests of 
Members , such libe ralization could be explored through the promotion of unilateral and voluntary 
commitments or through the launch of a separate plurilateral initiative for only those interested 
Members . 
3  Objective and sector example: climate mitigation and renewable energy  
3.1  Presentation by the International Renewable Energy Agency (IRENA)  
3.1.  The representative of the International Renewable Energy Agency (IRENA)  made  a presentation 
on renewable energy , which provided an update on the uptake of renewable energies ; and 
highlighted  the importance of : (i) quality infrastructure ; (ii) harmoni zation of technical 
requirements ; (iii) availability of complementary services including installation, operation, and 
maintenance ; and (iv)  common standards for services such as installers, operators and technicians 
to facilitate the trade of renewable technologies . It was noted that prices for renewable electricity 
had significantly decreased over the past 10 years, and were generally the cheapest energy source 
across regions. The presentation further highlighted that trade and trade policy could foster further 
cost reductions, deployment of renewable energies, and job creation. Further, it was noted that the 
increasing a doption of renewable energies could promote trade in renewable energy products and 
goods, such as complementary technologies or components, electricity, and renewable fuels.  
3.2  Exchange of views by Members  
• What are important considerations regarding supply ch ains, technology, services, and 
technical and regulatory  elements?  INF/TE/SSD/R/8  
 
- 3 - 
 
  • What challenges and policies impede the ability of developing countries and LDCs to 
engage in and maximize benefits from trade in environmental goods and services and 
how can these be addr essed?  
3.2.  Members reacted to the presentation and shared their experiences with regard to challenges 
and opportunities of trade in EGS. Several Members noted their efforts that had led to high shares 
of renewable energy in the energy mix , as well as ambitions  in increasing their share of domestic 
renewable energy production .  
3.3.  A Member  noted that trade in EGS should incorporate a whole -of-lifecycle approach and that 
goods were produced in compliance with international labour standards. As an example, it was 
suggested that upstream processes in the production of environmental goods, such as mining or 
high-intensity production through fossil -fuel powered processes , should be included in the 
consideration of the environmental benefits of a good. With regard to labour conditions,  existing 
trade tools could be used to ensure that goods using forced labour were not imported and to 
encourage compliance with international  labour standards.  
3.4.  A Member  highlighted the importance of promoting free and fair trade for renewable energy 
goods  that would support  green and low -carbon development of developing countries and help  
achieve environmental and climate goals. The Member  emph asized the benefits of renewable energy 
trade and South -South cooperation in  helping developing countries increase the proportion of clean 
energy and electricity penetration.  
3.5.  A Member  emphasized  the importance of access to markets and technologies to devel op and 
enter  new markets, highlighting the potential of developing countries to become producers of clean 
energies such as hydrogen. Four areas of consideration were suggested : (i) avoiding distortions on 
exports of energy goods, notably hydrogen; (ii) improving market access for goods, investment, and 
services; (iii) investment protection; and (iv) regulatory convergence and domestic regulation. It 
was suggested that a future framework could consider the operation of the interconnection or export 
infrastru cture; the prohibition of trade and investment distortions in renewable and low carbon fuels; 
the facilitation of investments in renewable energy; addressing non -tariff barriers such as the access 
and use of infrastructure, market rules, design of support mechanisms and auctions, land access, 
authorization procedures and setting a framework for regulatory cooperation; and tackling specific 
challenges for a market -based approach to non -product -related product and production methods 
requirements.  
3.6.  A Member  highlighted that trade and trade policy should contribute to achieving the Sustainable 
Development Goals, including environmental protection and climate change adaptation and 
mitigation. With regard to national experiences, the Member  highlighted a programme  which  
target ed sectors accounting for 90% of national energy demand. It was noted that these initiatives 
include d increasingly stringent efficiency standards, which would  then be replicated across sectors 
to improve energy efficiency. Regarding renewable energy, the Member  highlighted the adoption of 
projects to diversify the energy mix in electricity production whereby renewable energy would 
account for 50% of the energy mix b y 2030. One programme  would implement comprehensive 
reforms and set out a roadmap to diversify local energy sources based on solar, wind, geothermal, 
waste -to-energy, and clean hydrogen energy. It was noted that promoting sustainable supply chains 
and addr essing the challenges arising from the use of sustainability standards were key issues for 
developing countries. In particular, the lack of technical and regulatory capacities could hinder the 
achievement of reforms, and that promoting fair and equal acces s to trade and investment in 
technologies could help maximize the benefits of trade in EGS.  
3.7.  Another Member  highlighted that technology transfer and technical assistance should be 
addressed first before discussing lowering tariffs on environmental goods an d services  in order to 
ensure that developing countries were not only seen as potential markets for exports from developed 
countries. In addition, it was suggested that addressing non -tariff barriers and standards could help 
address challenges with trade i n EGS for developing countries.  
3.8.  A Member  highlighted that renewable energy represented the majority of its energy matrix in 
2020 (58% of total energy; 42% biomass ; 9% wind energy ; 6% hydropower ; and 1% solar energy ), 
and almost the entirety of its electri city matrix. These figures were a result of long-term policies,  
which had resulted in an energy transformation.  The Member noted efforts to further decarbonize INF/TE/SSD/R/8  
 
- 4 - 
 
  its energy matrix by promoting green hydrogen through tax incentives. . Opportunities  for expand ing 
renewable energy production included solar energy , given the potential to allocate a significant part 
of its territory to solar energy production . Challenges included making progress in the transformation 
of waste into energy.  
3.9.  Another  Member  highlighted the importance of transparency, predictability of rules and 
international standards for trade in EGS. In particular, it was noted that , given the lack of commonly 
agreed definitions for environmental goods or services, labels or standards coul d facilitate the 
identification of EGS by consumers and provide producers with competitive advantages. In addition, 
it was noted that digitali zation could serve as a tool for the diffusion of EGS through verifiable and 
complete information on the supply ch ain. Such tools could serve to replace labels and standards if 
digitalization could distinguish between EGS and less environmentally favourable goods and services.  
3.10.   A Member  highlighted that subsidies and standards should be discussed to ensure increased 
use of renewable energies. With regard to national experiences, the Member  noted that 
hydroelectric, wind and solar power  account ed for most of its power production  and that both exports 
and imports were increasing through improved infrastructure. To increas e the uptake and 
dissemination of solutions to address climate change mitigation, the Member was pursu ing ambitious 
requirements, support schemes, green public procurement and public -private cooperation, which 
had, for example, led to an increas ed use of n on-fossil cars as well as battery -charged ferries. 
Capacity building and transfer of technology in the clean energy sector were also important  priorit ies 
of the Member's  development assistance . 
3.11.   Another Member  underlined the importance of overcoming challen ges to developing country 
participation in the green economy. In this regard , it would be important to : (i) undertake collective 
work to lower the costs and increase access to imports that were vital for the low -carbon transition 
and the achievement of NDC s; (ii) identify key goods and services produced by developing countries 
which serve d an environmental purpose, and assess their barriers to markets; and (iii) support the  
participation of developing countries in global value chains for EGS. This would req uire international 
collaboration on the transfer of technology, transfer of skills, an increase of the developing country 
market demand for environmental goods, and the building of institutional infrastructure and policy 
for clean technology.  
3.12.   A Member highlighted that internationally tradable renewable energy remained subject to 
high tariffs and non -tariff barriers, while other energy goods did not face such barriers. It was noted 
that policies to facilitate trade in goods and associated servic es that could contribute to 
decarbonization and electrification were important to achieve such objectives.  
4  Interventions by stakeholders  
4.1.  The representative of the Forum on Trade, Environment and the SDGs ( TESS) underlined the 
importance of account ing for both tariff and non -tariff measures in order to transition beyond a 
"market -based " discussion . Some developing countries had liberalized EGS but had still not 
registered any scaling of technologies or investment in these areas , which pointed to technology 
transfer and investments as drivers for EGS. He suggested analysing  the potential of developing 
components of products that harness ed the generation of wind and solar energy in developing 
countries as a number of them already had the capacity to manufactur e such components.   
5  Concluding remarks by the facilitators  
5.1.  The facilitators concluded the meeting by thanking Members for their contributions with regard 
to their priorities for the working group and their experiences through the sectoral example of 
renewable energy  and objective of climate mitigation. They noted that the discussions should be as 
inclusive as possible to ensure the participation of all Members.  
__________  