In Brief

DISCUSSION SOUGHT ON TRADE RULES FOR BIOFUELS

According to a new study, the increasing use of biofuels -- alternative fuels based on agricultural feedstocks -- warrants careful study of how trade rules apply to them. The fact that the WTO rules applicable to biofuels were created before the advent of these products means that a "debate needs to occur on how the rules apply to this technology and how or whether the rules need to be clarified or even changed." For example, it is not yet clear whether biofuels can be considered industrial, agricultural or environmental goods at the WTO. Subsidy rules also need to be clarified, especially to avoid the cross-subsidisation of biofuel byproducts, according to the authors.

he study notes that the most efficient producers are located in the South, while the greatest demand can be found in the North. Therefore, there is scope for increased biofuels trade, but for the moment rules and standards governing their production, quality, and trade are "all over the map". In addition, sustainability concerns such as the impact of biofuels on food prices and the local environment in potential exporting countries are coming to the fore (see Bridges BioRes, 6 October 2006, http://www.ictsd.org/biores/06-10-06/story2.htm).

Entitled "WTO Disciplines and Biofuels: Opportunities and Constraints in the Creation of a Global Marketplace," the study was jointly produced by the International Food and Agricultural Trade Policy Council (IPC) and Renewable Energy and International Law (REIL).

To access the report, visit http://www.agritrade.org/Publications/DiscussionPapers/WTO_Disciplines_Biofuels.pdf

ICTSD reporting; "WTO must set rules for future biofuel trade-report," REUTERS, 27 October 2006.

EU TAKES STEPS TO REDUCE GLOBAL MERCURY EXPOSURE

The European Commission has proposed a regulation to ban all EU mercury exports and to mandate the safe storage of surplus mercury. Pending joint approval by the European Parliament and the Council of Ministers, the legislation would take effect beginning in July 2011.

Both the ban and the storage measures are part of the EU's stated commitment to reduce levels of mercury in the global environment, as exposure to high levels of mercury in any form -- metallic, inorganic or organic -- can permanently damage the brain, kidneys, and developing foetus. The EU mercury strategy launched by the Commission in 2005 outlines 20 measures to reduce mercury emissions, cut supply and demand, and protect against mercury exposure.

Although many environmental and health groups applauded the EU's initiative in addressing the international mercury threat, some were still not satisfied as the proposed legislation will not cover mercury compounds or mercury-containing products. While some are concerned that the proposed implementation date of 2011 is too distant, others fear that there will not be enough time to allow for development of an environmentally-sound method of permanently storing mercury.

The EU is also attempting to kick-start international action on mercury regulation. The Commission organised an international conference on mercury on 26-27 October, at which the EU and more than 30 non-EU countries began to discuss means of reducing human and environmental exposure. Next February, the possible development of a legally binding international agreement will be discussed at a meeting of the UN Environment Program (UNEP) Governing Council. Delegates hope to find more common ground than at the last Council meeting, where the US, Australia, and Japan preferred voluntary agreements to binding instruments (see BRIDGES Trade BioRes, 4 March 2005, http://www.ictsd.org/biores/05-03-04/inbrief.htm#3).

"Environment: Commission proposes ban on EU mercury exports," EU PRESS RELEASE, 26 October 2006; "European Commission Proposes Ban on EU Mercury Exports," ENS, 30 October 2006.

SCIENTISTS SOUND ALARM BELLS FOR THE FUTURE OF WORLD FISHERIES

An international group of ecologists and economists sent a strong warning regarding the impending collapse of the word fisheries if no action is taken to halt the decline. Drawing on the findings of an extensive global study published in the journal Science on 3 November, the researchers concluded that virtually no fish stocks would be left in the seas by the middle of the century if current trends continued.

The four-year study found that about one third of open sea fisheries have already collapsed, a trend exacerbated by broader losses in marine biodiversity. The current rate of decline would not be sustainable in the long run, the authors warned. "Unless we fundamentally change the way we manage all the ocean species together, as working ecosystems, then this century is the last century of wild seafood," said Steve Palumbi from Stanford University, one of the scientists involved in the report.

While refraining from singling out specific causes of the decline, the researchers pointed to fishing, pollution, climate change, ocean acidification and destruction of marine habitats as some of the key factors.

On a more positive note, the authors stressed that the impending collapse could still be averted although "with each species that is lost that opportunity diminishes", according to the study's lead author Boris Worm of Dalhousie University. The study highlighted better use of marine protected areas as one possible avenue to safeguard the stocks.

Environmental groups echoed the researchers' grave concerns. "For centuries people have regarded the ocean as an inexhaustible supply of food. But in recent years human actions have finally pushed oceans to their limit," said Dr Simon Cripps, Director of WWF's Global Marine Programme. He urged governments and industry to act quickly before reaching "the point of no return for fisheries and the marine environment".

Many fishing industry groups greeted the study with scepticism. "It is a doomsday prediction that ignores the reality of what the world is actually trying to do to remove the ills that it describes", said Bertie Armstrong of the Scottish Fishermen's Federation.

"'Only 50 years left' for sea fish," BBC, 2 November 2006; "Fishing report 'ignores reality'," BBC, 3 November; "WWF urges governments and industry to act urgently on oceans' crisis," WWF PRESS RELEASE, 3 November 2006.

HUMANS OVERDRAWING ON EARTH'S RESOURCES, WWF REPORTS

In 2003, humanity was using up natural resources 1.25 times faster than Earth could replenish them, while the biodiversity of vertebrate species populations has declined by 30 percent since 1970. These trends are detailed in the "Living Planet Report 2006", a biennial publication that assesses humanity's impact on natural resources and global biodiversity, released jointly by global conservation group WWF and the Global Footprint Network on 24 October.

The report uses two indicators to assess these trends: the ecological footprint, which measures human demand on various ecosystems; and the Living Planet Index, which measures the health of those ecosystems.

According to the report, the United Arab Emirates has the largest footprint per person, followed by the US, Finland, Canada and Kuwait. Regardless of size, however, the report finds that almost no country today meets the sustainable development ideals of having both a high quality of life and an average footprint that does not exceed the biological capacity available per person on the planet. The footprint of a country includes the cropland, grazing land, forest and fishing grounds it uses to produce the food, fiber and timber it consumes, to absorb the wastes it produces, and to provide space for its infrastructure. "Humanity's footprint has more than tripled between 1961 and 2003," the report said. The fastest-growing part of the footprint is due to fossil fuel use and carbon dioxide emissions, which have increased more than nine fold from 1961 to 2003, and now comprise nearly half of the total global footprint.

The Living Planet Index tracked trends from 1970 to 2003 in over 3,600 populations of more than 1,300 vertebrate species from around the world, dividing them into terrestrial, marine or freshwater species, and further into temperate or tropical zones. The report found that while tropical species declined by 55 percent on average, temperate species have shown little change since 1970. While there has been a greater than 25 percent average decline in marine biodiversity around the globe, this decline is much more dramatic in the Indian/Southeast Asian and Southern Oceans.

WWF and the Global Footprint Network called on both developed and developing countries alike to make political decisions with ecological limits in mind, and to begin by generating and using energy in cleaner, more environmentally-friendly ways.

To access the report visit http://www.panda.org/news_facts/publications/key_publications/living_planet_report/index.cfm


"Human Footprint Too Big for Nature," WORLD-WIRE, 24 October 2006; "Humans Living Far Beyond Planet's Means-WWF," REUTERS, 25 October 2006; "Living Planet Report: Humanity Overdrawn on Nature's Credit," ENVIRONMENT NEWS SERVICE, 24 October 2006.

CIVIL SOCIETY QUERIES WTO D-G ON HOT TRADE TOPICS

WTO Director-General Pascal Lamy phased tough questions during a one-hour public internet chat on 18 October with representatives of business, academia, NGOs, and media from around the world. While most questions focused on prospects for re-launching the Doha round negotiations and the growing trend towards bilateral and regional trade agreements, Lamy also was asked to comment on the WTO and global warming.

Out of 150 questions, only five addressed environmental and natural resources concerns.

On the WTO and global warming, Mr. Lamy reaffirmed that "the optimal use of world's resources in accordance with the objective of sustainable development" continues to be an "overarching principle for the interpretation of all WTO commitments". He further stated that "the WTO recognises that states have the (conditional) right to adopt measures relating to the conservation of natural resources even if such measures lead to some trade restriction".

When some remained unsatisfied that the WTO was not doing enough to urgently confront global warming, Lamy reiterated that the power to "take measures which are necessary to protect natural resources and to protect human, animal and plant life", although recognised and encouraged by WTO rules, is up to individual governments to initiate.

Others suggested that the WTO should ensure that poorer nations are compensated for their wealth in natural resources, especially in carbon storage services. Although Lamy expressed hope that environmental assets would be traded "with an eye to equity and the intrinsic value of the assets in question", he rejected the idea that the WTO should mandate this exchange, remarking "in the absence of complete markets, it is for governments [not the WTO] to decide how such issues as unpriced or badly priced environmental assets should be addressed".

The transcript of the chat can be found at http://www.wto.org/english/news_e/news06_e/dgchat_18oct06_e.htm.

"Lamy Fields 150 Questions from Around the World in Online Chat," WTO NEWS RELEASE, 18 October 2006.

INTERNATIONAL MINING FORUM ADOPTS PLAN FOR SUSTAINABLE DEVELOPMENT

A global mining forum recently called for action against unjustified barriers to market access for mineral and metals.

Meeting in Geneva, Switzerland from 18-20 October, representatives from 36 countries and a number of international organisations gathered for the second meeting of the Intergovernmental Forum for Mining, Minerals, Metals and Sustainable Development. The forum discussed the implementation of recommendations made at its inaugural meeting in 2005. Members recognised the need for greater international support for geological mapping and for environmental impact assessment in developing countries; greater vigilance in order to react to unfair barriers to market access for minerals and metals; and support for policies that more effectively integrate mining into the economic and social objectives of countries.

Members agreed to establish an Investment Outlook Committee to track developments that might affect mining investments in member countries and to establish a separate Committee to prepare for the 2010-2011 UN Commission on Sustainable Development (CSD) meetings. They also decided that the primary themes for the next Forum meeting -- to be held in Moscow in 2007 -- will include the examination of policies that can optimise the benefits from mining; the aspects of good governance critical to investment decisions; and unresolved issues pertaining to community benefits and development.

The forum was established at the 2002 World Summit on Sustainable Development (WSSD) for the purpose of enhancing the contribution of mining to sustainable development by promoting good governance.

"Mining Forum Adopts Action Plan," UNCTAD RELEASE, 20 October 2006; "Media Advisory-Intergovernmental Forum on Sustainable Development for Mining, Minerals, and Metals," CNW GROUP, 12 October 2006.