   
  
INF/TE/SSD/R/20  
 
21 December 2023  
(23-8766) Page: 1/7 
    
 
TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS (TESSD)  
INFORMAL WORKING GROUP MEETINGS  
HELD ON 20-21 NOVEMBER  2023 
Summary of discussions1 
1  REMARKS BY THE TESSD CO -CONVENORS  
1.1.  In their introductory remarks, the Co -convenors (Canada and Costa Rica) informed Members 
on informal consultations they had held in previous weeks with some 17 delegations to hear their 
views on the planned Co -convenor Statement for MC13, the update of the  TESSD Work Plan, as well 
as the Co-convenors' proposal for a digital trade and environmental sustainability hub. Regarding 
the latter, it was  now proposed to start with  a pilot project focused on environmental goods and 
services. They also informed that t he date of the next TESSD Plenary meeting was moved to 
25 January  2024. At the Plenary, the TESSD package for MC13 would be discussed, and an annual 
report would be prepared to support the review of work in 2024.  The Co -convenors also mentioned 
that they w ere coordinating with other environmental initiatives to explore the possibility of 
organi zing a joint event  at MC13 . They encouraged Members to take advantage of the last working 
sessions of the year and to continue making progress, including on the outco me documents.  
2  WORKING GROUP ON  TRADE -RELATED CLIMATE MEASURES – 20 NOVEMBER (A.M.)2 
Exchange on the development and implementation process of trade -related climate measures  
Developing country perspectives and implementation of TrCMs  
2.1.  The International Trade Centre (ITC) presented on TrCMs and their impact on small businesses 
in developing countries through two case studies: (i) mandatory environmental and human rights 
due diligence; and (ii) deforestation -free global value chains. The pres entation highlighted the 
importance of creating spaces for dialogue, feedback loops, value chain -based action plans, support 
for policy implementation including accompanying measures for MSMEs, a smart mix of mandatory 
regulations and voluntary standards, and a multi -stakeholder approach.  
2.2.  As part of the discussions, Members reacted to the presentation and responded to the following 
questions:  
• What challenges do developing Members, including their MSMEs, face regarding TrCMs 
instituted by other Members : (i) during the development phase ; and (ii) during the 
implementation phase? How can these be addressed?  
 
1 This summary provides a non -exhaustive, illustrative summary of the issues addressed by Members, 
prepared and circulated under the responsibility of the facilitators chairing the meetings: Jean-Marie Meraldi 
(Switzerland) and Ariel Marie Quek (Singapore) for the Working Group on Trad e-related Climate Measures;  
Carlos Guevara (Ecuador) and Ben Rake (United Kingdom) for the Working Group on Environmental Goods and 
Services; Kazunari Morii (Japan) for the Working Group on Circular  Economy – Circularity; and Mauro Bruno 
(Uruguay) and Tiff any Smith (Israel) for the Working Group on Subsidies.  
2 Twelve Members contributed to the discussions: Australia, Brazil, Canada, China, Colombia,  EU, Japan, 
Paraguay, Switzerland, Türkiye,  UK and US. INF/TE/SSD/R/20  
 
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  • What are experiences and challenges of developing Members regarding the development and 
implementation of their own TrCMs? How can these be add ressed?  
• What would be good practices (including based on Members' experiences) in terms of 
engagement with developing countries and other trading partners during the implementation 
of TrCMs?  
2.3.  Members welcomed the presentation by the ITC and emphasized the  importance of dialogue 
and consultations in the development of TrCMs, encouraging greater engagement early in the 
development stage. Members also identified significant implementation challenges for developing 
countries , and particularly  for their  MSMEs, such as insufficient phase -in/transition periods, lack of 
financial capacity, and inadequate technical and digital infrastructure to adapt to new regulations by 
third countries while remaining competitive. A few Members reiterated the relevance of the prin ciples 
of international environment law , such as common but differentiated responsibilities (CBDR ), polluter 
pays and equity in designing TrCMs.  
Draft outcome document and way forward  
2.4.  Facilitators introduced the revised draft outcome document, which provide d a compilation of 
Member practices in the development of TrCMs with regard to: (i) transparency and consultations; 
(ii) impact assessments; (iii) review following implementation; and (iv) considerations for TrCMs 
policymaking ( INF/TE/SSD/W/25/Rev.2 ). 
2.5.  Members welcomed the document and broadly expressed their support. On the way forward 
and update of the Work Plan, a few Members envisaged linking the work of this Group to the 
multilateral discussions in the Committee on Trade and En vironment (CTE)  and a suggestion was 
made to present the outcome document in the CTE . Several Members preferred a practical approach 
to future discussions and provided  suggestions includ ing deepening discussions on carbon emission 
standards and methodologi es and how to ensure their consistency , as well as bringing together 
issues discussed across the Working Groups  related to renewable energy and green technologies 
such as batteries and carbon capture and storage.  
Review of measures intended to decarboni ze hydrogen production and develop green hydrogen 
markets  
2.6.  The Director of the Trade and Environment Division of the WTO Secretariat briefly introduced 
the collaboration between the International Renewable Energy Agency (IRENA) and the WTO 
Secretariat on a t echnical report on international trade in green hydrogen products.3 Presentations 
were made by IRENA as well as the WTO Secretariat on their findings.  
2.7.  The presentation by IRENA focused on the role of green hydrogen in the energy transition , 
particularly t he prospects for trade. The presentation highlighted that hydrogen and its derivatives 
are estimated to represent up to 14% of total final energy consumption by 2050. Transitioning to 
renewable energy could bring down costs and create potential for scaling  green hydrogen production, 
and international trade could serve around a quarter of global demand for green hydrogen. The WTO 
Secretariat made a presentation on trade policies and green hydrogen, highlighting that current 
trade in hydrogen was largely foss il-based and much smaller than trade in derivatives like ammonia 
and methanol, which are widely used in fertilizers, chemicals and other sectors. The presentation 
identified key tradable goods and services along the green hydrogen and derivatives supply ch ain, 
such as electrolysers; provided an overview of hydrogen -related subsidies and technical barriers to 
trade that are notified to the WTO; and elaborated on the role of trade policies along the hydrogen 
supply chain.  
2.8.  As part of the discussions, Members r eacted to the presentations  and respond ed to the 
following questions:  
 
3 The report "International Trade and green hydrogen: Supporting the global transition to a low -carbon 
economy" was published on 9 December 2023: 
https://www.wto.org/english /res_e/publications_e/green_hydrogen_e.htm   INF/TE/SSD/R/20  
 
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  • How can trade -related climate measures (TrCMs) and trade policies be leveraged to enable 
the development of the green hydrogen market? What TrCMs are Members pursuing to support 
the deve lopment of green hydrogen production?  
• What are important considerations in the development of an international quality 
infrastructure system for the green hydrogen supply chain, including regarding carbon 
measurement standards and certification schemes? What are specific developing country 
challenges in this regard and how can they be addressed?  
2.9.  Members  shared  their experiences in developing renewable energy and clean hydrogen 
markets and identified alignment of standards, conformity assessment procedures and regulatory 
frameworks along the hy drogen value chain as a key opportunity to promote this sector. Further  
suggestions to develop green hydrogen markets and integrate developing countries included 
reducing operational complexities and improving business environments to support investment , 
including by sharing risk between the public and private sector; promoting decarbonized energy 
sources that are essential to produce renewable hydrogen; adoption of harmonized emission 
calculation methodologies such as that proposed by the International Par tnership for Hydrogen and 
Fuel Cells in the Economy  (IPHE); interoperable certification schemes; international cooperation, 
particularly through bilateral and multilateral agreements to encourage investment, sharing of 
intellectual property and dispute res olution.  
3  WORKING GROUP ON ENVIRONMENTAL GOODS AND SERVICES  – 20 NOVEMBER  (P.M.)4 
Draft outcome document and way forward  
3.1.  Facilitators introduced the revised draft Analytical Summary ( INF/TE/SSD/W/24/Rev.3 ), which 
covered : (i) indicative lists of key goods and services for renewable energy; (ii) trade barriers and 
supply chain bottlenecks; (iii) developing country issues; and (iv) opportunities and approaches for 
promoting trade. They also recalled that the Analytical Summary was a 'living ' document to be 
updated after MC13 as discussions in the WG progress ed.  
3.2.  Members welcomed the draft outcome as a good reflection of the discussions so far and 
additionally shared their views on the update of the Work Plan. Members suggested deepening 
discussions in renewable energy sector while also broadening discussions to other sectors , including 
those related to climate change adaptation. Some Members suggested engaging in a more granular 
work on an agreed non -binding list of renewable energy goods and services, building on the outcome 
document and identifying concrete actio ns that may be taken,  and linking to regular WTO bodies to 
pursue opportunities to address bottlenecks and facilitate trade. Additionally, Members expressed 
interest in HS reform and expanding environmental services beyond CPC 94, as well as technology 
innovation and diffusion .  
Green hydrogen  
3.3.  The United Kingdom provided a presentation based on a technical non-paper on hydrogen 
energy and trade  (INF/TE/SSD/W/30 ), which outlined the importance of hydrogen in decarbonization 
efforts, identified goods a nd services needed in the sector, barriers to trade and the uptake of 
hydrogen, and also signposted various international initiatives in the development of hydrogen 
standards emphasizing the importance of interoperability among standards.  
3.4.  Uruguay provided a presentation on its Green Hydrogen and Derivatives Roadmap, which 
prioritized sectors such as methanol, e -fuel, heavy transport and fertilizers. The presentation 
highlighted Uruguay's potential to be a producer and exporter of green hydr ogen and provided an 
overview of the H2U program me – coordinated by an interinstitutional group of various government 
ministries and stakeholders – aimed at building green hydrogen generation capacity, infrastructure, 
attracting investment, designing regul ations and enabling dialogue with civil society.  
 
4 Eleven Members contributed to the discussions: Australia, Brazil, Canada, Chile, Colombia, EU, Japan, 
New Zealand, Switzerland, UK and US.  INF/TE/SSD/R/20  
 
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  3.5.  As part of the discussions, Members and stakeholders reacted to the presentations and 
responded to the following questions:  
• What are key goods and services to support the production, trade and use of green 
(renewable) hydrogen?  
• What are opportunities for developing countries to participate in green hydrogen supply 
chains? How can trade policy and trade -related technical assistance and capacity -building help 
overcome challenges to exploit these opportunities ? 
3.6.  A number of M embers  indicated that natural resource -abundant developing countries with 
proximity to water sources c ould be competitive in the hydrogen sector. Some of the relevant goods 
identified by Members , inter alia , included electrolysers and related equipment and technology; raw 
materials for electrolysers , such as graphite and platinum; machinery and technology necessary to 
converting gaseous hydrogen into its derivatives; and transportation equipment , such as pipe lines 
and high-pressure  tube trailers. Certain services were observed to be relevant horizontally across 
sectors, for instance, engineering, construction, operation and maintenance, testing and 
certification, research and development  and consulting, among others. Members also raised other 
relevant aspects like the expansion of infrastructure and development of technology for scaling 
production, certification processes and training program mes, and attracting private investment. A 
Member also noted the import ance of a predictable business environment owing to the nascency of 
the sector and reducing financial risks to aid the private sector.  
Biofuels  
3.7.  Brazil provided a presentation on its national biofuels policy, RenovaBio, which provided for: 
(i) national targ ets for emission reductions; (ii) individual certifications based on a lifecycle analysis; 
and (iii) decarbonization credits related to the compliance with emission targets. The presentation 
also provided an overview of well -to-wheel emissions in the autom otive industry, the national 
sustainable aviation fuel program me, CO2 capture and storage technology regulation, the national 
green diesel program me and the regulations on increasing ethanol limits in gasoline.  
3.8.  As part of the discussions, Members and stak eholders reacted to the presentations and 
responded to the following questions:  
• What are key goods and services to support the production, trade and use of biofuels?  
• What are opportunities for developing countries to participate in biofuel supply chains? How 
can trade policy and trade -related technical assistance and capacity -building help overcome 
challenges to exploit these opportunities?  
3.9.  Members shared their domestic policies in the biofuels sector highlighting that a wide variety 
of feedstocks includin g agricultural, forestry and waste -derived feedstocks provide d opportunities 
for biofuel production depending on the individual circumstances of each country. Members identified 
key services relevant to the biofuel sector as including those related to the building and running of 
production plants, testing and certification and research and development. It was recogni zed that 
developing the biofuels sector c ould, inter alia , contribute to providing energy security, create jobs 
and foster economic growth, and bring value addition to farmers while also resulting in valuable 
co-products and decrease d dependence on fossil fuels . Challenges include d the need for government 
support for creating markets, traceability along complex supply chains, potential effects on  land use 
change, as well as ensuring coherence of certification schemes and standards as new types of 
biofuels enter ed the market.  
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  4  WORKING GROUP ON CIRCULAR ECONOMY – CIRCULARITY  – 21 NOVEMBER (A.M.)5 
Trade -related circular economy aspects of the textiles sector  
4.1.  The UN Environment Programme (UNEP) presented on sustainability and circularity hotspots 
in the textile value chain identifying three priorities for policymakers : (i) shifting consumption 
patterns; (ii) improving existing practices; and (ii i) investing in infrastructure. Key actions included 
encouraging circular and sustainable product design, supporting the development of related global 
standards, data, tools and guidelines, as well as exploring trade policy options for textile waste to 
prevent underutilization and maximize circularity.  
4.2.  A presentation by the United Nations Economic Commission for Europe (UNECE)  focused on 
the role of traceability in enabling circular textile value chains from raw material production to the 
post-consumption stage. An overview was provided of UNECE's Framework Initiative, including 
blockchain pilot projects across products and regions using the UNECE methodology , which 
covers : (i) the selection of the claim to be substantiated; (ii) identification of the type of evidence 
needed; and (iii) tracking and tracing the phases of production with supporting documentary 
evidence. The presentation also touched upon UNECE's projects on trade of second -hand clothing 
and product circularity data.  
4.3.  As part of the discussions , Members and stakeholders reacted to the presentations and 
responded to the following questions:  
• What are Members' initiatives to promote circularity in textiles and what roles does trade 
policy play?  
• What opportunities exist in the WTO for Members to p romote circularity in textiles?  
• What opportunities and challenges can be posed by regulatory measures and eco -design 
implemented to support transitions to circular economy in the textile sector?  
• How can transparency and traceability support circularity i n textiles? What role could labelling 
and product passports have in this regard?  
• What challenges related to the international trade of second -hand and end -of-life textiles, 
including regarding waste management, exist and how can they be addressed?  
4.4.  Members  welcomed the presentations and emphasized, inter alia , the importance of 
transpa rency and traceability in textiles, including through digital product passports and labels to 
inform consumer choices ; prevent ing used textile exports intended for reuse or recycling from being 
incinerated or entering informal waste -streams or landfills ; and ensuring safe and environmentally 
sound management at the post -consumer stage. Members also highlighted the role of eco -design 
regulations and Extended Producer Responsibility (EPR) schemes to promote circularity in textiles; 
investment in recycling inf rastructure, including through public -private partnerships to finance 
end-of-life management and create economies of scale; development of technology for value 
extraction to create reliable sources of quality recycled materials; and promoting interoperabil ity 
and alignment of international standards to make circular business models more commercially 
viable.  
Draft outcome document – Mapping exercise  
4.5.  Facilitators presented the revised draft outcome document ( INF/TE/SSD/W/27/Rev.1 ), which 
provided a mapping of: (i) Members' initiatives and experiences aimed at promoting a circular 
economy; (ii) measures in the WTO (notifications and TPRs) from the WTO Environmental Database; 
(iii) trade aspects of the circular economy based on presentations, analytical work and discussions; 
and (iv) a table with areas of possible trade -related action. The document was broadly supported by 
Members.  
 
5 Nine Members contributed to the di scussions: Australia, Canada, Chile, China, EU, Japan, Norway, 
Switzerland and US. INF/TE/SSD/R/20  
 
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  4.6.  On the way forward and the update of the Work Plan, one Member suggested presenting the 
document at the CTE to en courage a multilateral discussion going forward while another 
recommended exploring opportunities to complement the work of the Committee on Technical 
Barriers to Trade ( TBT Committee ). Other suggestions for future work included deeper discussions 
on the impacts of EPR; trade facilitation, technology and capacity -building to achieve economies of 
scale; interoperability of standards, streamlining procedures and building capacity of regulators and 
customs authorities; use of digital tools for transparency and traceability; facilitation of prior 
informed consent (PIC) procedures which would benefit the recovery and recycling of critical 
materials; further discussions on the textile sector; and trade -facilitation efforts to enable post -
consum er circularity -related activities.  
Ongoing activities  
4.7.  The Forum on Trade, Environment and the SDGs (TESS) provided a presentation updating 
Members on the work of their expert group on possible considerations and good practices to guide 
the design of trade -related circular economy policies and measures, including regarding border 
measures, regulatory measures and economic incentives that aim ed to promote circular economy in 
different sectors and along different points in the value chain.  
4.8.  Members welcomed t he presentation, and one Member highlighted the importance of 
cooperating on trade restrictions , particularly where restrictions d id not pursue environmental or 
health objectives. The Organisation for Economic Co -operation and Development (OECD) shared 
about their ongoing work on a report focusing on filling knowledge gaps in terms of the trade 
implications of product policies related to the circular economy.  
5  WORKING GROUP ON SUBSIDIES  – 21 NOVEMBER (P.M.)6 
Draft outcome document and way forward  
5.1.  Facilitato rs introduced the revised draft outcome document, which provided a compilation of 
Member experiences and considerations regarding the design and transparency of agricultural 
subsidies and subsidies related to the low -carbon transition ( INF/TE/SSD/W/29/Rev.1 ). They also 
recalled that the document would continue to be updated after MC13 as discussions in the Group 
progressed. Members expressed support for the draft outcome document and one Member 
suggested that the outcome document be at the core of further work in this Working Group. As for 
the sectors to be discussed going forward, a number of Members welcomed the suggestion by the 
Facilitators to cover sustainable aviation fuels (SAF), while some encouraged further discussions on 
agricul tural subsidies , and others preferred to shift the focus beyond agriculture to other sectors , 
such as industrial subsidies.  
Experience  sharing on subsidy design relating to green hydrogen and renewable energy  
5.2.  Switzerland provided a presentation on its Energy Strategy 2050 aimed at promoting energy 
efficiency and the use of renewable energy. The presentation highlighted three strategic obj ectives, 
including: (i) increasing energy efficiency in buildings, mobility, industry and appliances, which is 
financed, inter alia , through earmarking of the CO2 tax and the electricity grid surcharge, 
respectively; (ii) increasing the use of renewable en ergy through promotion systems financed 
through surcharge s on network costs as well as support measures like one -time investment aids, 
feed-in premiums and auctions; and (iii) withdrawing from the use of nuclear energy through a 
step-by-step approach prior itizing safety and restricting the issuance of new licences.  
5.3.  Australia presented on its clean hydrogen support initiative, the Head START programme, 
which sought to accelerate the development of Australia's hydrogen industry, catalyse clean energy 
industri es, and help Australia connect to new global hydrogen supply chains by building on regional 
hydrogen hubs initiatives across the country. The presentation also covered Australia's guarantee of 
 
6 Eight Members contributed to the discussions: Australia, Brazil, Canada, China, EU, Japan, Switzerland 
and US.  
 INF/TE/SSD/R/20  
 
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  origin scheme to promote transparency around clean hydrogen pro duction as well as its climate 
finance commitments.  
5.4.  The United States provided a presentation on the US clean hydrogen strategy, which included 
targeting industrial applications, transportation and power sector applications; reducing costs 
associated with production, onboard storage, delivery and dispensing; focusing on regional clean 
hydrogen hubs ; and creating economic benefits. The presentation discussed the incentives under 
the Inflation Reduction Act  (IRA) , as well as the "Hydrogen Shot" -"111" initiati ve, which aimed to 
reduce the cost of clean hydrogen to USD 1 per 1 kg in 1 decade.  
5.5.  As part of the discussions, Members and Stakeholders reacted to the presentations and 
responded to the following questions:  
• What programmes are Members pursuing to support  the development of green hydrogen and 
renewable energy?  
• How do you consider possible trade impacts and environmental benefits in the design of 
subsidies related to green hydrogen and renewable energy?  
• What are opportunities at the national and internati onal levels, including at the WTO, to 
enhance transparency and data availability?  
5.6.  As part of the discussion, Members share d their experiences with  domestic support measures 
to promote the hydrogen sector and highlighted that subsidy notifications under th e Agreement on 
Subsidies and Countervailing Measures ( SCM Agreement ), exchanges in the TESSD and the CTE, 
and inclusion  of relevant information in TPRs c ould facilitate transparency and data availability. 
Members noted , inter alia, the importance of ensuri ng secure supplies of clean energy, developing 
energy storage capacity and sector  coupling to reduce reliance on fossil fuels.  
__________  