Global action
to address climate change is occurring at a time of momentous
geopolitical, economic and environmental change. The twin challenges
of climate change and energy security have sparked debate and
raised several questions with respect to their links to the
global trade agenda.
At the global
level, trade liberalisation and climate change mitigation and
adaptation are currently managed under separate and complex
legal regimes. The UNFCCC and its Kyoto Protocol set binding
targets for the reduction of emissions of greenhouse gases (GHG)
but do not mandate any specific policies and measures, thus
leaving to countries the task of finding within the realm of
their economic policies ways to reach their emissions reduction
targets. In doing so, they must also abide by their commitments
under the WTO agreements. WTO trade rules - through disciplines
on subsidies, border measures, technical requirements, government
procurement and taxes - to a great extent determine the options
countries have to use economic and other regulatory tools. Therefore,
it is also important for countries to actively pursue in trade
negotiations the right to retain and expand the necessary policy
space allowing them the flexibility to enact policy in support
of climate change mitigation and adaptation.
At least
three areas of the ongoing Doha negotiations provide an opening
for countries to ensure that the multilateral trade rules support
climate change policy. Subsidy reform, an essential liberalisation
component in the Doha Round negotiations, will impact on support
programmes in the energy sector. The current negotiations on
agriculture could lead to restructuring of production globally,
with associated changes in land use patterns. A reform of agricultural
subsidies would also provide an opportunity to promote genuinely
sustainable agricultural production and practices that could
have positive effects on global carbon management. Other opportunities
relate to negotiations on the accelerated liberalisation of
environmental goods and services (EGS), which could lead to
an expansion of the market for clean energies and other climate-friendly
technologies.
Participants
will explore the opportunities and challenges of advancing climate
change objectives in the current Doha round of multilateral
trade negotiations.