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1、Trade Policy Tools for Climate ActionTrade Policy Tools for Climate Action,a publication by the WTO Secretariat,looks into the trade policies that governments could consider as part of their strategies for climate change mitigation and adaptation.The publication covers ten policy areas where governm
2、ents have introduced measures to support the transition to a low-carbon economy,improve the flow of climate-friendly goods and services,decarbonize supply chains,and build resilience to extreme weather events and climate change.Launched at COP28,the publication is intended to shed light on how trade
3、 policy actions for climate could accelerate the transition to a climate-friendly global economy as part of the WTO Secretariats efforts to encourage the full use of the power of trade to deliver on collective sustainable development objectives,including those in relation to the climate crisis.World
4、 Trade Organization Centre William Rappard Rue de Lausanne,154 CH-1211 Geneva 2 Switzerland Tel:+41(0)22 739 51 11 www.wto.orgWTO Publications Email:publicationswto.orgWTO Online Bookshop http:/onlinebookshop.wto.orgReport designed by Graphic and Event Design,Print and Distribution Section.Printed b
5、y the World Trade Organization.Cover images:Shutterstock/R Tar/Paceman/PitukTV Inside image:Photo of the DG WTO/Jay LouvionWorld Trade Organization 2023.Print ISBN 978-92-870-7566-6 Web ISBN 978-92-870-7565-9 Published by the World Trade Organization.TRADE POLICY TOOLS FOR CLIMATE ACTION|1Table of c
6、ontentsAcronyms and abbreviations 2Foreword by Director-General Ngozi Okonjo-Iweala 4Introduction 6Executive summary 7Policy tools#1 Trade facilitation 13#2 Government procurement 16#3 Regulations and certification 19#4 Services 22#5 Import tariffs 25#6 Subsidies 29#7 Trade finance 32#8 Food and agr
7、iculture 35#9 Sanitary and phytosanitary measures 39#10 Internal taxation and carbon pricing 42Bibliography 47WTO Secretariat publications on tradeand climate change 522|TRADE POLICY TOOLS FOR CLIMATE ACTIONAcronyms and abbreviationsAD anti-dumpingADB Asian Development BankAPEC Asia-Pacific Economic
8、 CooperationCCvh conventional combustion vehicles CO2 carbon dioxideCTE Committee on Trade and EnvironmentCV countervailing EBRD European Bank for Reconstruction and DevelopmentEDB WTO Environmental DatabaseEVs electric vehiclesFAO United Nations Food and Agriculture OrganizationGATT General Agreeme
9、nt on Tariffs and TradeGDP gross domestic productGGP green government procurementGHG greenhouse gases GPA Government Procurement Agreement GtCO2e gigatonnes of equivalent carbon dioxideGW gigawattsHS22 Harmonized Commodity Description and Coding System 2022IEA International Energy AgencyIFC Internat
10、ional Finance CorporationIISD International Institute for Sustainable DevelopmentIMF International Monetary FundIPCC Intergovernmental Panel on Climate ChangeLcveh low-carbon vehiclesLDC least developed countryMC12 12th Ministerial ConferenceNAPs national adaptation plansNDCs nationally determined c
11、ontributionsOECD Organization for Economic Cooperation and DevelopmentPV photovoltaic R&D research and developmentRE renewable energy SCM Agreement Agreement on Subsidies and Countervailing MeasuresSDGs Sustainable Development GoalsSG Agreement Safeguards AgreementSMEs small and medium-sized enterpr
12、isesSPS sanitary and phytosanitary STDF Standards and Trade Development FacilityTFA Trade Facilitation AgreementTPRs Trade Policy ReviewsUNCTAD United Nations Conference on Trade and DevelopmentUNDP United Nations Development ProgrammeUNEP United Nations Environment ProgrammeWCO World Customs Organi
13、zationWEF World Economic ForumWHO World Health OrganizationWTO World Trade OrganizationTRADE POLICY TOOLS FOR CLIMATE ACTION|3Disclaimer This publication has been prepared under the WTO Secretariats own responsibility.It does not necessarily reflect the positions or opinions of WTO members and is wi
14、thout prejudice to their rights and obligations under the WTO agreements.The opinions expressed and arguments employed herein are not intended to provide any authoritative or legal interpretation of the provisions of the WTO agreements and shall in no way be read or understood to have any legal impl
15、ications whatsoever.4|TRADE POLICY TOOLS FOR CLIMATE ACTIONEven though trade is indispensable for both climate change mitigation and adaptation,it has too often been overlooked in the global response to the climate crisis.This is set to change at COP28 where,under the presidency of the United Arab E
16、mirates,trade will feature prominently on the agenda.The timing could not be more opportune.The United Nations authoritative global stocktake ahead of COP28 demonstrates that national pledges to cut global greenhouse gas emissions remain well short of what is required to avoid the worst effects of c
17、limate change in line with the 2015 Paris Agreement.At the same time,however,the trillions of dollars worth of investments necessary for the low-carbon transition in the years and decades ahead now face substantially higher borrowing costs due to the run-up in global interest rates.Against this back
18、drop,trade offers a tool for delivering greater emissions reductions for each dollar spent.In line with the mandate in the WTOs founding agreements to advance trade in a manner that promotes sustainable development,the WTO Secretariat has developed a 10-point set of“Trade Policy Tools for Climate Ac
19、tion,”in support of COP28s spotlight on trade as a lever for climate mitigation and adaptation.The toolkit builds on the Secretariats research work to shed light on ways that trade and trade policy can help accelerate and amplify the impacts of climate action for the benefit of current and future ge
20、nerations.Recent editions of our flagship World Trade Report have provided valuable insights into the economic underpinnings of the relationship between climate change and international trade.The 2022 report noted that while trade can,under certain circumstances,lead to increased greenhouse gas emis
21、sions associated with more economic output and transport,it also offers a vital means for economies to access the goods and services necessary for a low-carbon transition,create the job opportunities needed to ensure that the transition is just and equitable,and help economies recover from shocks,su
22、ch as droughts,floods and other extreme weather events.It looked at the plummeting prices that have made solar power cheaper than fossil energy in many places,and drew attention to research suggesting that 40%of the dramatic recent cost declines resulted from scale economies made possible in part by
23、 international trade and cross-border value chains.The lesson is clear:without globally integrated supply chains,getting to net-zero emissions by mid-century would become much more expensive.Foreword by Director-General Ngozi Okonjo-IwealaTRADE POLICY TOOLS FOR CLIMATE ACTION|5The 2023 World Trade R
24、eport looked at research demonstrating how trade serves as a powerful force multiplier for environmental policy action.For example,when economies move jointly to correctly price water use or greenhouse gas emissions,trade amplifies the environmental gains:just as economies can reap economic gains by
25、 specializing in what they are relatively good at,the world can reap environmental gains if economies specialize in activities that they are relatively green at.In this publication,the WTO Secretariat explores 10 trade policy tools that can accelerate progress towards climate goals.Each element coul
26、d be integrated into nationally determined contributions(NDCs)and national adaptation plans(NAPs)as economies look to ratchet up the ambition of their climate strategies.Based on the robust discussions on trade and climate change ongoing in various WTO committees,as well as the rising number of form
27、al notifications of climate-related trade policy measures,two clear conclusions emerge.First,continued dialogue and cooperation are imperative for trade and climate policies to be mutually reinforcing,instead of each potentially becoming collateral damage of the other.And second,many WTO members are
28、 increasingly using trade-related measures to help achieve their climate change objectives.A just transition to a low-carbon and resilient global economy is a prerequisite for better lives and livelihoods for people around the world.The toolkit focuses on issues at the heart of delivering a people-c
29、entred green transition:bringing down the cost of clean energy,decarbonizing supply chains,aligning standards and regulations,repurposing subsidies,and creating new business opportunities in the emerging low-carbon economy.I am eager for the insights it offers to be shared and hopefully,implemented
30、as widely as possible.Dr Ngozi Okonjo-IwealaDirector-General6|TRADE POLICY TOOLS FOR CLIMATE ACTIONIn June 2022,at the WTOs 12th Ministerial Conference(MC12),the entire WTO membership recognized that the world is facing“global environmental challenges including climate change and related natural dis
31、asters,loss of biodiversity and pollution”.It also noted“the importance of the contribution of the multilateral trading system to promote the UN 2030 Agenda and its Sustainable Development Goals,in its economic,social,and environmental dimensions,in so far as they relate to WTO mandates and in a man
32、ner consistent with the respective needs and concerns of Members at different levels of economic development”.This acknowledgement came after an increased level of discussions at the WTOs Committee on Trade and Environment(CTE)and other WTO bodies,and initiatives on how trade and trade-related polic
33、ies could be harnessed and better aligned with climate objectives.The WTOs Environmental Database(EDB),available via the WTO website,shows that WTO members,from all regions and stages of development,are increasingly using trade-related policies as part of their climate action toolbox.From 2009 to 20
34、21,members notified to the WTO more than 5,000 measures with climate-related objectives.About 40 per cent were notified by developing members.WTO bodies and notification tools offer extensive opportunities,therefore,for governments to exchange views and experiences,learn from each other and develop
35、best practices on a range of trade-related policy tools that can contribute to effective climate action.Following the publication of the WTO Secretariats 2022 World Trade Report,which focused on the complex relationship between trade and climate change,Trade Policy Tools for Climate Action seeks to
36、highlight key trade-related policies being used,or that could be used,by governments to mitigate the effects of climate change or to adapt to its consequences.The policy tools set out in this publication are simply intended to be a source of information and possible inspiration,amongst others,for po
37、licymakers to draw on in pursuit of their domestic climate mitigation and adaptation plans.They are purely voluntary in nature,and the publication does not seek to evaluate what the most appropriate or efficient policy tools might be for governments,individually or collectively.As a contribution to
38、the discussions at COP28,taking place in late 2023,on how trade can be a key part of the solution to the climate crisis,the aim of this publication by the WTO Secretariat is to provide information that will assist the debate going forward.IntroductionTRADE POLICY TOOLS FOR CLIMATE ACTION|7Executive
39、summaryTrade has an important role to play in the global response to climate change,providing economies with tools to draw on in their efforts to mitigate climate change and to adapt to its consequences.A range of trade policy tools are available to speed up progress towards climate goals under the
40、Paris Agreement.Some key tools are outlined below.#1 Trade facilitationSpeed up customs clearance,reducing GHG emissions associated with inefficient customs procedures and road freight by adopting trade facilitation measures.Reducing waiting times at the border and streamlining inefficient customs p
41、rocedures can help reduce emissions associated with trade,especially as trade volumes continue to increase.Implementing trade facilitation measures,such as the use of electronic documentation,can help to reduce border control delays and related energy consumption,leading to reductions of up to 85 pe
42、r cent of emissions at certain land border crossings.The digitalization of paper-based trade processes could also reduce waste and lower associated emissions by as much as 63 per cent per invoice.The WTOs Trade Facilitation Agreement(TFA),which entered into force in 2017,aims to simplify,harmonize a
43、nd expedite customs procedures and border controls between trading partners.It is expected to reduce trade costs by an average of 14.3 per cent with the biggest gains in the poorest economies.Currently,the rate of implementation of TFA commitments by WTO members stands at around 77 per cent,but the
44、figure is much lower in poor economies,which would benefit the most by speeding up implementation.#2 Government procurementDrive lower carbon emissions by using government procurement as a tool.Government procurement of goods and services accounts for approximately 13 per cent of world GDP(around US
45、D 13 trillion per year).However,it is estimated to be directly or indirectly responsible for 15 per cent of GHG emissions.Government procurement systems usually mandate cost-effectiveness but only in some cases do they mandate climate change considerations.Greater emphasis on so-called green governm
46、ent procurement(GGP)policies can significantly reduce GHG emissions while producing major economic benefits,such as new green jobs and enhanced energy efficiency.For example,governments could revise their domestic procurement policies to include climate-sensitive criteria,such as science-based,low-c
47、arbon requirements in tenders.They could also make such criteria not just optional but mandatory.Various WTO members are already introducing low-carbon considerations into government procurement.The WTOs Environmental Database reveals that members have notified to the WTO over 70 environment-related
48、 government procurement measures since 2009,with the aim of promoting environmental goods and services,energy conservation,climate change mitigation and adaptation,and renewable energy.8|TRADE POLICY TOOLS FOR CLIMATE ACTION#3 Regulations and certificationUse international standards to avoid regulat
49、ory fragmentation when upgrading energy efficiency regulations.The growing number of energy efficiency requirements for consumer goods,such as electric vehicles or household appliances,can help to reduce domestic energy consumption and related GHG emissions by excluding the most polluting goods from
50、 the market.Energy efficiency regulations have already reduced annual energy-related emissions by 12 per cent in the 2000-17 period(IEA,2021a).However,different methodologies across the world for calculating the energy efficiency of goods can increase compliance costs for producers and exporters.WTO
51、 rules and committees,such as the Committee on Technical Barriers to Trade,help to promote coherent regulations and alignment with international standards,including for the measurement of carbon emissions embodied in traded goods or energy efficiency.Adherence to these principles can minimize regula
52、tory costs and duplication while helping achieve climate action goals.Through committee discussions,WTO members have contributed to increasing regulatory convergence on energy efficiency,advancing cooperation on climate-related challenges.Since 2009,over 1,180 energy efficiency and conservation regu
53、lations have been notified to the WTO by over 70 WTO members.Most of the regulations target commercial appliances,industrial equipment,household appliances and other materials.#4 ServicesAccelerate mitigation efforts,support adaptation and assist disaster recovery by reviewing domestic regulations a
54、nd restrictions for providers of climate-related services.Services related to low-carbon technologies for instance,installing,monitoring,and maintaining these technologies are often as important as the goods themselves.Similarly,cross-border provision of insurance,telecommunications,logistics,health
55、 and weather forecasting services can help economies prepare for climate-related crises.At present,there is significant scope to improve the conditions for trade in services relevant to climate mitigation and adaptation.Taking prompt action to review and reduce restrictions including in the form of
56、streamlined domestic regulations to trade in key services related to climate mitigation and adaptation can support governments climate action strategies.To better respond to extreme weather events,economies could,for example,facilitate the recognition of professional qualifications of foreign servic
57、e providers of relief services and reconstruction,in a manner compatible with WTO rules.The temporary movement of certain categories of technical experts,such as climate mitigation and adaptation specialists,to supply services abroad could be facilitated by the WTOs General Agreement on Trade in Ser
58、vices.Since 2009,WTO members have submitted 12 climate-related notifications to the Council for Trade in Services.In addition,51 WTO members have included climate-related information regarding their services sector in their Trade Policy Reviews,covering topics such as preferential market access for
59、climate-related service providers to low-carbon requirements for services.TRADE POLICY TOOLS FOR CLIMATE ACTION|9#5 Import tariffsHelp accelerate the transition to a green economy by rebalancing tariff policies that may inadvertently benefit carbon-intensive sectors.Current import tariffs tend to be
60、 lower in carbon-intensive industries than in clean industries.Key fossil fuels,such as crude oil and coal,face average applied tariffs of 0.8and 1.6 per cent respectively in the top ten importing markets while renewable energy equipment faces average tariffs of 3.2 per cent,with some members applyi
61、ng tariffs as high as 12 per cent.In the automotive sector,low-carbon vehicles exported to major markets face applied tariffs that are 1.6 to 3.9 percentage points higher than for conventional combustion vehicles.Import tariffs could be reviewed with a view to promoting the affordability and uptake
62、of products such as renewable energy equipment and electric vehicles needed for the transition to a low-carbon economy.Rebalancing tariffs by even a relatively small number of percentage points could make an important contribution to reducing renewable energy costs and increasing the uptake of low-c
63、arbon technologies.Some economies and regions have already started exploring the option of revising tariff levels.According to the WTO Environmental Database,at least 30 WTO members from all regions and levels of economic development have used tariff reductions for environmental purposes.WTO members
64、 Trade Policy Reviews reveal that these are mostly for renewable technologies,followed by low-carbon and electric vehicles.#6 SubsidiesUnlock additional resources to assist climate action by reforming environmentally harmful support measures.Governments support measures,such as subsidies,can help co
65、rrect market inefficiencies and enhance social welfare.At the same time,if not well calibrated,they can distort production and trade,reduce economic efficiency,exacerbate negative spillovers and damage the environment.This is relevant for sectors including in fossil fuels,agriculture,fisheries,trans
66、port and water supply.It is estimated that governments spend USD1.2trillion a year on potentially environmentally harmful subsidies(World Bank,2023).Reforming and repurposing subsidies could offer substantial environmental benefits.It is estimated that reforming fossil fuel subsidies by 2025 would r
67、educe CO2 emissions by an average of 6 per cent by 2030.Reinvesting just a third of these savings into energy efficiency and renewable energy could lead to an additional 3percent reduction in CO2 emissions(IISD,2022).Improving understanding of the environmental impacts of existing subsidies could he
68、lp to identify the priorities for reform.WTO members in 2022 demonstrated how this can work in practice,when they reached a landmark agreement to curb USD 22 billion in annual public spending on harmful fisheries subsidies that encourage illegal,unreported,and unregulated fishing,fishing overfished
69、stocks and fishing in the unregulated high seas.This will free up resources that can be put to better use.A second phase of these negotiations is ongoing to additionally reduce subsidies to overcapacity and overfishing.As the global community seeks to increase climate financing,especially to support
70、 developing economies quest for a just transition,repurposing environmentally harmful and market-distorting subsidies can be a win-win for people and the environment.%$10|TRADE POLICY TOOLS FOR CLIMATE ACTION#7 Trade financeSupport the diffusion of climate-related technologies and equipment by facil
71、itating and increasing trade finance,such as loans and guarantees.Some 60 to 80 per cent of world trade relies on trade finance,such as trade credit and insurance/guarantees,to help goods flow smoothly around the world.However,the supply of trade finance meets demand in only a few regions,with many
72、small and medium-sized enterprises(SMEs)and women-led businesses unable to gain access to finance.In some regions,such as West Africa and the Mekong region,no more than 25 per cent of trade is supported by trade finance.Recent studies show that raising this trade coverage to 40percent would increase
73、 annual trade flows by 8 per cent on average(WTO and IFC,2022;WTO and IFC,2023).Information on the trade finance gap between demand and supply for climate-related goods is limited but it is probably of a similar nature to the overall trade finance gap and should be closed to increase trade in produc
74、ts and technologies needed for the transition to a low-carbon economy.It is important that private banks,regional development banks and other institutions enhance their existing efforts to mobilize resources to increase trade finance programmes.One way they can do so is to join forces to develop ris
75、k-sharing frameworks that support trade in the products underpinning the energy transition.The flow of trade finance could be enhanced by building the capacity of local lenders,strengthening banking relationships,improving access for SMEs and women-led businesses,and aiding decision-making through b
76、etter quality data.These measures require coordinated action by relevant financial institutions,national policymakers,regulators and international organizations.#8 Food and agriculture tradeImprove how food and agricultural markets function,while contributing to climate action,by easing trade in foo
77、d.Trade already plays a key role in global food security.One in every five calories consumed around the world-and possibly as many as one in four-is traded(OECD-FAO,2022).As climate change deeply affects agricultural yields,this role will only increase,with trade helping food flow predictably and sm
78、oothly from where it is abundant to where it is needed.A variety of trade policies affect trade in food,such as import tariffs,subsidies and export restrictions.The weighted tariff average that governments applied to imports of agricultural goods was 6.2 per cent in 2021,but tariffs on some products
79、 can be prohibitive,at times even exceeding 1,000 per cent.In addition,farm subsidies can distort markets,contribute to increased carbon emissions,and encourage inefficient or unsustainable use of resources.OECD data indicates that USD 630 billion per year on average was provided in support to indiv
80、idual producers in 2020-22(OECD,2023).A significant amount of this spending could be repurposed to support climate adaptation and mitigation.More open,fair and well-functioning global markets for food and agricultural products can play a critical role in shaping and assisting climate action,strength
81、ening global food security,and reducing price volatility for food and fertilizer.WTO agreements by providing a stable and transparent framework for agriculture trade help in this regard.Prompt information-sharing about policies affecting trade would support the resilience of global markets for food
82、and agricultural products.TRADE POLICY TOOLS FOR CLIMATE ACTION|11Agriculture and forestry account for over a fifth of global greenhouse gas emissions(IPCC,2023).There is scope to lower emissions related to farm production and trade by changing agricultural practices and land use patterns.Paired wit
83、h coordinated climate action,trade could also contribute to reducing the sectors carbon footprint by allowing economies to specialize more in foods they can produce with a relatively low carbon footprint.#9 Sanitary and phytosanitary measuresProtect economies from the spread of disease and pests exa
84、cerbated by climate change by strengthening sanitary and phytosanitary systems.Extreme weather events,droughts and rising temperatures are altering the global prevalence of pests and diseases,affecting agricultural output and contributing to greater food safety risks.Plant pests alone are estimated
85、to cause losses of up to 40percent of crop production,costing the global economy more than USD 220 billion annually.The impact of climate change on animal health is likely to be considerable,including through the spread of vector-borne diseases,such as bovine fever.To protect people from new pest an
86、d disease risks linked to climate change,it will be important for governments to adopt strategies and policies that strengthen SPS systems to safeguard plant and animal health.At the same time,it is critical to ensure that producers in vulnerable economies suffering from the impacts of climate chang
87、e are equipped to meet these new SPS standards,so that they do not end up shut out of key export markets.Adherence to the WTOs SPS Agreement can help ensure that new SPS measures introduced in the context of climate change remain anchored in science and follow international standards,guidelines and
88、recommendations.Since 1995,WTO members have notified more than 33,000 measures to the SPS Committee.Most of these were adopted to protect food safety,ensure animal health and plant protection,and protect humans from animal or plant pests and diseases.#10 Internal taxation and carbon pricingReduce po
89、licy fragmentation and compliance costs by improving coordination of climate-related,non-discriminatory internal taxes,including carbon pricing and equivalent policies.Carbon pricing,such as taxes on carbon-intensive goods,can be an effective tool in reducing global GHG emissions.Two thirds of all n
90、ationally determined contributions(NDCs)submitted by governments to achieve emission reduction targets under the Paris Agreement consider the use of domestic carbon pricing schemes.However,the proliferation of such schemes according to the World Bank,over 70 carbon pricing systems already exist glob
91、ally,with varying coverage and prices ranging from less than USD1 to more than USD 130 per tonne of CO2-equivalent can raise administrative and compliance costs for exporters,particularly for SMEs.Coordination of internal taxes,including carbon pricing,can be achieved through various international p
92、latforms.The“Global Stocktake”at COP28 is a key opportunity for governments to review their internal taxation policies and seek better alignment.By facilitating exchange of best practices,international cooperation can contribute to improving the efficiency of carbon pricing schemes and reducing thei
93、r administrative costs.Cooperation can also pre-empt trade tensions and accusations of protectionism in$12|TRADE POLICY TOOLS FOR CLIMATE ACTIONrelation to carbon pricing policies,and ensure all views and concerns,including those of developing economies,are taken into account in discussions on carbo
94、n pricing and other approaches to reducing emissions.The WTOs Environmental Database shows that at least 57 WTO members from all levels of economic development have used internal taxes for environmental purposes.The Trade Policy Reviews of these economies provide dozens of examples of internal taxat
95、ion schemes adopted for climate-related objectives,mostly concerning the energy sector,manufacturing and the chemicals sector.TRADE POLICY TOOLS FOR CLIMATE ACTION|13#1Trade facilitationPolicy toolSpeed up customs clearance,reducing GHG emissions associated with inefficient customs procedures and ro
96、ad freight by adopting trade facilitation measures.Policy tool14|TRADE POLICY TOOLS FOR CLIMATE ACTION#1 Trade facilitationHow can adopting trade facilitation measures lead to a reduction in carbon emissions associated with customs procedures and help mitigate climate change?The WTOs Trade Facilitat
97、ion Agreement(TFA)entered into force in 2017.It aims to simplify,harmonize and expedite customs procedures and border controls between trading partners.The Agreement contains provisions covering various areas,including transparency,advance rulings(i.e.a written decision provided by a member to the a
98、pplicant prior to the importation of a good),customs cooperation,trade facilitation measures for goods in transit,and the use of modern technologies.Studies show that a full implementation of the TFA could reduce trade costs by an average of 14.3percent and increase global trade by up to USD 1 trill
99、ion per year,with the biggest gains in the poorest economies(WTO,2015).Currently,the rate of TFA implementation commitments stands at around 77per cent for the full WTO membership,but only at 43 per cent for least developed countries(LDCs),where businesses face some of the highest trade costs.1 Deve
100、loping members and LDC members receive assistance with implementation from the WTOTFA Facility,an initiative aimed at helping developing and LDC members assess their specific needs and identifying possible development partners to help them meet those needs.A key trade facilitation measure is the dig
101、italization of trade processes,to make them more accessible,faster and cost-efficient.Digitalization can also help make trade more climate-friendly by,for example,encouraging the use of electronic documentation,thus reducing paper What is trade facilitation?Trade facilitation refers to policies aime
102、d at simplifying,modernizing and harmonizing export,import and transit processes,to make international trade more efficient and effective.These measures include improving customs procedures,reducing trade barriers,enhancing transparency and promoting the use of modern technologies and more efficient
103、 logistics.By eliminating unnecessary bureaucracy,paperwork and delays,trade facilitation helps to expedite the movement of goods across borders,reduces transaction costs and enhances the competitiveness of businesses.Case study:Mariposa crossing on the US-Mexican borderTrade between the United Stat
104、es and Mexico exceeds USD 1 million per minute,with the majority of this trade transiting through land border ports of entry.The Mariposa port of entry in Nogales,Arizona(United States)is one of 48 border crossings between the United States and Mexico(according to the Smart Border Coalition).To faci
105、litate freight transport at the Mariposa border crossing,several policies were adopted by the two countries,including:the US Free and Secure Trade Program(2001),which was established to enhance border security while facilitating the movement of low-risk commercial goods between the US,Canada and Mex
106、ico.It included pre-registering drivers,vehicles and cargoes,and certifying every link in the supply chain such as the manufacturer,carrier and importer;and the Joint US-Mexico United in Cargo Processing Program(2018),which was implemented at certain border crossings,with the aim of harmonizing and
107、expediting the processing of commercial cargo by implementing joint inspections and coordinated customs procedures.The US Environmental Protection Agency estimates the two programmes achieved an 85 per cent reduction in GHG emissions and particulate matter emissions at the Port of Nogales-Mariposa c
108、rossing,mostly due to a substantial reduction in vehicle queue lengths and crossing times.The United in Cargo Processing Program has since been expanded to nine other locations along the US-Mexico border.TRADE POLICY TOOLS FOR CLIMATE ACTION|15waste and the associated carbon footprint(UNCTAD,2021).F
109、or instance,paperless,electronic invoicing was found to potentially reduce GHG emissions per invoice by 63 per cent compared to traditional invoicing in Finland(Tenhunen and Penttinen,2010).2By aiming to improve border logistics and infrastructure and reduce waiting times at border controls,includin
110、g at ports and land borders,trade facilitation measures can also help reduce energy consumption and associated GHG emissions from freight transport.For example,by harmonizing and standardizing trade procedures,the TFA reduces duplication and unnecessary inspections,leading to more efficient shipping
111、 and freight processes and lower carbon emissions(WTO,2022h).Reducing waiting times at the border is crucial to reduce emissions,particularly when trade volumes are increasing over time.Indeed,a 2016 study that modelled emissions from trucks at a land border crossing predicted dramatic increases in
112、emissions as traffic volumes and congestion rise.A doubling in traffic meant GHG emissions increased 3.5 times,while tripling of traffic led to a sixfold increase(Reyna et al.,2016).What could be done to align trade facilitation policies with wider climate action policy plans?Aligning trade facilita
113、tion with wider climate action policy plans can help the transition to a low-carbon economy.Governments could integrate into their nationally determined contributions(NDCs)trade facilitation considerations and the adoption of green customs procedures.These include electronic documentation,harmonizin
114、g inspections and expedited conformity assessment procedures,and facilitating the implementation of low-carbon freight transport and more carbon-efficient routes and logistics systems.Governments could also integrate climate mitigation and adaptation considerations in trade facilitation plans.Additi
115、onally,WTO discussions can foster policy coherence between trade and climate objectives by facilitating dialogue and collaboration between members-for example,at the Committee on Trade Facilitation or the Committee on Trade and Environment.By promoting dialogue and knowledge-sharing platforms,WTO re
116、gular work can facilitate the exchange of experiences and best practices,allowing members to align the TFA implementation effectively with their climate action policy plans.Developing and LDC members may seek assistance from the TFA Facility.The WTO Secretariat also operates different technical assi
117、stance initiatives and training courses that can help address members specific situations,particularly in developing and least developed economies.By leveraging its expertise and global network,the WTO Secretariat can support governments in aligning trade facilitation with their wider climate action
118、 policy plans.For example,the WTO Secretariat,in cooperation with the World Bank and the World Economic Forum,recently launched the Action on Climate and Trade,a new capacity-building initiative,which aims to help requesting developing economies,including LDCs,use trade to meet their climate change
119、mitigation and adaptation goals.16|TRADE POLICY TOOLS FOR CLIMATE ACTION#2Government procurementPolicy toolDrive lower carbon emissions by using government procurement as a tool.Policy toolTRADE POLICY TOOLS FOR CLIMATE ACTION|17#2 Government procurementHow can government procurement of more climate
120、-friendly low-carbon goods and services help mitigate climate change and promote the just transition to a low-carbon economy?Government procurement is of great economic importance,accounting for 10-15 per cent of national GDP,on average,and about 13 per cent of world GDP(around USD 13 trillion per y
121、ear)(World Bank,2021).This buying power can be deployed at all levels of government to help mitigate climate change and promote a just transition to a low-carbon economy.Through so-called green government procurement(GGP)policies,governments can influence private sector producers through their purch
122、ases of low-carbon goods and services,create markets for new green goods and services and stimulate innovative solutions to climate change problems by awarding public research and development(R&D)contracts.In addition,GGP can help governments reduce their own carbon footprint.Government procurement
123、is estimated to be directly or indirectly responsible for 15 per cent of global greenhouse gas(GHG)emissions(WEF,2022).3 According to the World Economic Forum,abating such emissions would lead to a USD 4trillion boost to the green economy and create around 3million net new jobs.Greater emphasis on G
124、GP policies can therefore significantly reduce GHG emissions while producing significant economic benefits through new green jobs,enhanced energy and other resource-use efficiency,and stimulating innovation(World Bank,2021).According to the 6th Assessment Report by the Intergovernmental Panel on Cli
125、mate Change(IPCC),current domestic government procurement systems usually mandate cost-effectiveness but only in some cases do they allow or mandate climate change considerations.The WTO Environmental Database indicates that GGP policies take many forms and various members are already introducing lo
126、w-carbon considerations into government procurement(see box).Furthermore,aligning public procurement rules with other related objectives,such as promoting innovation,can have multiplying effects.The International Energy Agencys(IEA)Net Zero by 2050 Roadmap indicates that,while the needed decarboniza
127、tion of the world economy by 2030 is largely What is government procurement?Governments purchase goods and services(including construction services)using taxpayers money to fulfil their governmental functions and provide public services.Such purchases are generally referred to as government procurem
128、ent.WTO members experiences with sustainable public procurement practicesAccording to the WTO Environmental Database(EDB),members have notified to the WTO at least 77 environment-related government procurement measures since 2009.These have pursued a series of objectives,including promoting environm
129、ental goods and services(27),energy conservation(20),climate change mitigation and adaptation(9)and renewable energy(4).Not all WTO members are parties to the Government Procurement Agreement(GPA).Currently,48 members are covered by it.Still,data from the EDB provide some examples of government acti
130、on in this area,such as:Japans Basic Policy for the Promotion of Contracts considering Reduction of Emissions of Greenhouse Gases(2019);Icelands public procurement rules amendment to consider climate and social-related criteria and labels(2017);Canadas public procurement innovation programme for sma
131、ll and medium-sized enterprises(SMEs)and environmental solutions(2015);and Montenegros green procurement strategy which considers innovation and degree of environmental protection as eligible elements for bidders(2015).18|TRADE POLICY TOOLS FOR CLIMATE ACTIONachievable with readily available technol
132、ogies,by mid-century almost half of required emissions reductions will have to come from new technologies(IEA,2021b;IMF,2021).Government procurement can thus play a central role in helping nascent technologies take the key step from R&D to market readiness by serving as“first customers”,promoting le
133、arning curves,and providing economies of scale(Janeway,2018).By revising and updating domestic government procurement policies and incentivising purchases of low-carbon solutions,including nascent technologies,such a realignment can help promote several objectives at once.What could be done to align
134、 government procurement policies with wider climate action policy plans?In line with their domestic climate goals,governments could revise their domestic government procurement policies to include climate-sensitive criteria,such as science-based,low-carbon requirements in tenders.They could make suc
135、h criteria not just optional but mandatory.In addition,GGP policies could be combined with more open government procurement markets.This would help to increase the number of suppliers participating in procurement tenders and to give government purchasers access to better or less costly climate-frien
136、dly goods,services and technological solutions.Research has confirmed that stable and open markets are key factors in low-carbon technology development,uptake and dissemination(Xin et al.,2022).WTO rules including its Government Procurement Agreement(GPA 2012)can play an important role in ensuring t
137、hat open government procurement markets are leveraged to support climate objectives.For example,the GPA 2012 helps governments to overcome a potentially costly and climate-inefficient home bias in government procurement by ensuring that GGP practices are non-discriminatory,based on open markets and
138、in line with good governance practices.Moreover,the GPA 2012 already has features that facilitate climate change mitigation through government procurement.For instance,it allows the application of technical specifications aimed at the protection of the environment and the evaluation of tenders using
139、 the environmental implications of a good or service as a criterion.WTO regular work and discussions can also help by providing examples of what members are already doing in terms of government procurement,including by providing dedicated fora for policy learning and exchange,such as the Committee o
140、n Trade and Environment or the Committee on Government Procurement,and by providing technical assistance to those seeking to explore this topic further.TRADE POLICY TOOLS FOR CLIMATE ACTION|19#3Regulations and certificationPolicy toolUse international standards to avoid regulatory fragmentation when
141、 upgrading energy efficiency regulations.Policy tool20|TRADE POLICY TOOLS FOR CLIMATE ACTION#3 Regulations and certificationHow can regulations,such as energy efficiency requirements,help mitigate climate change?The role of energy efficiency regulations in addressing climate change can be twofold.Fi
142、rst,energy efficiency requirements for certain consumer goods,such as electric vehicles,construction material or household appliances,can help reduce domestic energy consumption and related GHG emissions,by excluding the most polluting goods from the market.Second,energy efficiency labelling schemes
143、,notably on household appliances or in emission-intensive industries,can lead to more informeddecision-making by consumers.As awareness of the availability of more energy-efficient and less emission-intensive goods grows,labelling schemes can be instrumental in allowing consumers to more easily choo
144、se greener products when they wish to do so.The key role of regulatory instruments in climate change mitigation efforts was recognized by the 6th Assessment Report by the IPCC.Studies reviewed in the Report estimate that the growing number of energy efficiency measures around the world have saved at
145、 least 500 metric tonnes of CO2 equivalent per year since 2000(IPCC,2022).For example,in South and South-East Asia,energy efficiency in buildings has improved by 5-6percent annually since 2010.Energy efficiency regulations therefore offer great emission-reducing potential for the future,having alrea
146、dy reduced annualenergy-related emissions by 12percent in the 2000-17 period and potentially delivering over 40 percent of the abatement required to be in line with the Paris Agreement targets by 2040(IEA,2021a).Although some markets have introduced new regulations mandating the exclusive sale of hi
147、gh-efficacy LED lamps as opposed to less energy-efficient forms of lighting,progress in this area must be sustained to ensure that all economies sell predominantly LED technology by 2025,and with increasing efficiency,to align with the IEAs Net Zero Emissions by 2050 Scenario.Energy efficiency What
148、are technical regulations and standards?Technical regulations set out mandatory product characteristics or requirements for their related processes and production methods.Standards are similar,but are voluntary in nature.To assess compliance with such measures,conformity assessment procedures(e.g.te
149、sting,verification,inspection and certification)may be used.Regulations are often adopted to fulfil legitimate policy objectives,including those related to climate action.WTO members experiences with energy efficiency regulationsSince 2009,over 1,180 energy efficiency and conservation regulations ha
150、ve been notified to the WTO by over 70 WTO members(EDB).The number of measures notified over the years has stayed constant,with a minimum of 68 measures notified each year and a peak in notifications in 2021(147 measures notified).Most of the regulations target commercial appliances and industrial e
151、quipment(such as air conditioning,and heating and cooling systems),household appliances(e.g.clothes dryers,refrigerators and dishwashers),and fluorescent lamps,construction products and material.Some recent examples include:Draft East African Standard 1064-1&2:2021 a minimum energy performance stand
152、ard for lighting products harmonizing requirements across East African economies(2022);The European Unions new Ecodesign for Sustainable Products Regulations(2022)providing EU-wide rules for improving the energy performance of certain goods;Chiles law on energy efficiency,which provides for the esta
153、blishment of energy efficiency standards for light-,medium-and heavy-duty vehicles(2021);and Indonesias Minimum Energy Performance Standard and Label for Energy Utilizing Household Products(2021).TRADE POLICY TOOLS FOR CLIMATE ACTION|21measures in the building sector,such as insulation or more effic
154、ient appliances,could also help reduce GHG emissions in the sector by 50 per cent by 2050(Creutzig et al.,2021).What could be done to align energy efficiency regulations with wider climate action policy plans?When adopting climate-related regulations,adherence to WTO principles is important.For exam
155、ple,coherence,effectiveness and international cooperation as well as harmonization with international standards will make measures more effective in achieving climate goals(WTO,2022g).The importance of international cooperation in tackling climate change was also recognized by the IPCC in its 2022 R
156、eport(IPCC,2022).It holds particularly true for technical regulations and standards.For example,different measuring methodologies for calculating the energy efficiency of goods across trading partners can lead to legitimacy issues and make tracking global emissions reduction efforts more challenging
157、.Moreover,different methodologies can also increase unpredictability and compliance costs for producers and unnecessarily restrict international trade(WTO,2022i).WTO rules and institutions help promote coherent and fit-for-purpose regulations as well as alignment with international standards,includi
158、ng for the measurement of carbon emissions embodied in traded goods or energy efficiency.The WTO also provides a platform where international cooperation is encouraged and discussions on climate-related measures take place(see box).In order to reduce regulatory fragmentation,WTO members have held mu
159、ltiple discussions on at least 80 specific energy efficiency regulations at the Committee on Technical Barriers to Trade.Through these discussions,WTO members have contributed to more regulatory convergence on energy efficiency,which has advanced cooperation on some of the current climate-related ch
160、allenges.When adopting climate-related regulations or standards,it is crucial to keep in mind that developing economies face specific challenges which may render compliance more difficult,including in the area of energy efficiency.A well-developed domestic quality infrastructure4 can help surmount s
161、ome of these limitations.Providing support and technical assistance to developing economies in this area could help them demonstrate their carbon competitiveness,which will be crucial for a just transition to a low-carbon economy.It could also help SMEs take full part in global low-carbon value chai
162、ns.The WTO Secretariat,including in close cooperation with institutions working on international standards,can help governments efforts to ensure that standards development and regulatory practices are better aligned with their climate action plans.22|TRADE POLICY TOOLS FOR CLIMATE ACTION#4ServicesP
163、olicy toolAccelerate mitigation efforts,support adaptation and assist disaster recovery by reviewing domestic regulations and restrictions for providers of climate-related services.Policy toolTRADE POLICY TOOLS FOR CLIMATE ACTION|23#4 ServicesHow can services trade help local communities mitigate an
164、d adapt to climate change,in particular during climate disasters?Reviewing domestic regulations and barriers to trade in key climate-related services could be part of an economys climate change mitigation and adaptation strategies.Many green technologies central to reducing GHG emissions and making
165、economies more resilient to climate change do not involve only goods but also key related services,such as installing,monitoring and maintaining certain climate-related goods(Swedish National Board of Trade,2014).5It is also important to consider services restrictions and administrative procedures i
166、mpacting ancillary services(e.g.electricity grid balance and storage operations)so that climate mitigation and adaptation projects can be properly implemented in a timely and cost-effective way.Under the WTO General Agreement on Trade in Services,environmental services are one of the least open sect
167、ors.Only 59 WTO members have undertaken specific commitments in at least one of the seven environmental services sub-sectors6 and several members who did so limited their commitments to consulting and/or advisory services(WTO,2022g).While services markets may be more open than what is currently capt
168、ured in WTO commitments,there is still considerable scope to further facilitate the provision of services by domestic and foreign suppliers who have environmental and climate expertise.Barriers to trade in environmental services can take many forms.These include monopolies and exclusive rights for c
169、ertain services,restrictions on the movement What is trade in services?Ranging from communications to transport,finance,education,tourism and environmental services,the services sector is the backbone of the global economy and one of the most dynamic components of international trade.Technological a
170、dvances have made it easier to supply services across borders,thereby opening new opportunities to engage in international trade in services for economies and individuals.While increasingly traded in their own right,services also serve as crucial inputs into the production of goods.Policies in relat
171、ion to services trade also contribute to a wide range of national objectives,including those related to climate change mitigation and adaptation.At the WTO,trade in services is governed by the General Agreement on Trade in Services.Examples of climate-related services notified by WTO members and ref
172、orm experiences shared in Trade Policy ReviewsAccording to the WTO EDB,since 2009,there have been 12 climate-related notifications made by WTO members to the Council for Trade in Services and 58 climate-related references regarding the services sector in Trade Policy Reviews of 51 WTO members.These
173、vary widely from preferential market access for climate-related service providers to low-carbon requirements for services and efforts to improve investment and access to technology in key climate-related services sectors(such as tourism,renewable energy generation and advisory services for low-carbo
174、n agriculture).Some recent examples include:preferential treatment by at least 30 members to services and service suppliers from LDCs in climate-related sectors;sustainable forestry requirements for services providers in Gabon(2017);EU rules incentivising cross-border electricity trade,with increasi
175、ng shares of renewable energy(2020);and Guyanas Low Carbon Development Strategy,which includes the expansion of Guyanas fibre optic capability,support for call centres and business process outsourcing,and completion of telecommunications liberalization(2022).24|TRADE POLICY TOOLS FOR CLIMATE ACTIONo
176、f professionals and various restrictions on businesses,such as restrictions on foreign ownership,on type of legal entity,on the number and location of subsidiaries,and on the number of foreign employees.Furthermore,reform of domestic services regulation,by simplifying and streamlining administrative
177、 requirements and procedures,can facilitate access to and investments in these key services.Similarly,in the area of climate adaptation,international trade can help economies prepare for,cope with and recover from extreme weather events more effectively.Indeed,trade can facilitate the development an
178、d deployment of technologies and practices that support climate adaptation,such as climate-resistant crop varieties,early warning systems for extreme weather events and water conservation and storage systems.Trade openness also creates wider access to services that help prepare for climate-related e
179、vents.In this context,trade in services,such as weather forecasting,insurance,telecommunications,transportation,logistics and health services,can play a key role in the preparation of firms,citizens and governments for climate-related events(WTO,2022h;WTO,2022j).In the case of disaster relief and he
180、alth services,trained professionals,such as doctors and rescue personnel,may require special authorizations before beginning work in a disaster zone.Trade measures taken by a disaster-affected economy might include giving consideration,therefore,to how WTO provisions relating to trade in goods and s
181、ervices can facilitate the entry and clearance/authorization of relief items and personnel(WTO,2022j).What could be done to align trade measures for key climate-related services with wider climate action policy plans?Taking prompt action to review and revise restrictions,where appropriate-including
182、in the form of streamlined domestic regulations-to trade in key services related to climate mitigation and adaptation can support governments climate action strategies.For example,economies may wish to revise restrictions affecting the temporary movement of certain categories of technical experts,su
183、ch as climate mitigation and adaptation specialists and agricultural and water technicians,for the purpose of supplying services.They may also wish to ease the establishment of foreign suppliers of air pollution or renewable energy services,simplify administrative requirements or licensing procedure
184、s for climate-related services suppliers or facilitate the remote supply of environmental monitoring and climate-smart services,such as air pollution control services.Similarly,in order to better respond to extreme weather events,administrations could have systems in place to facilitate the movement
185、 of goods and services,such as food,healthcare and communication services,that assist the preparation for and recovery from disasters induced by climate change.One way to do this would be to facilitate the recognition of professional qualifications of foreign service providers of relief services and
186、 reconstruction,in a manner compatible with WTO rules.Governments could also improve the supply of weather-related services to build their capacity to anticipate extreme weather events.As governments increasingly adopt services-related trade measures to enhance their climate change mitigation and ad
187、aptation strategies,the WTO has a number of bodies,such as the Council for Trade in Services and the Committee on Trade and Environment,where members can share their experiences and learn from each other how to best leverage trade in services in support of climate action.Moreover,the WTO Secretariat
188、 can also help provide technical information whenever requested by members,with the aim of identifying specific ways in which trade policies related to services can be leveraged for climate action,including through tailored technical assistance and capacity-building activities.TRADE POLICY TOOLS FOR
189、 CLIMATE ACTION|25#5Import tariffsPolicy toolHelp accelerate the transition to a green economy by rebalancing tariff policies that may inadvertently benefit carbon-intensive sectors.Policy tool26|TRADE POLICY TOOLS FOR CLIMATE ACTION#5 Import tariffsHow can reviewing import tariffs in carbon-intensi
190、ve and lower-carbon sectors help to mitigate climate change?Import tariffs can be a relevant source of revenue for governments.However,revising tariff levels can also improve access to selected goods into an economy and help companies participate in global value chains.Current import tariffs tend to
191、 be lower in carbon-intensive industries than in clean industries.By reviewing and rebalancing import tariffs,there are significant opportunities to improve global income while reducing carbon emissions and integrating economies into low-carbon value chains(Shapiro,2021).7While WTO data8 shows that
192、average applied tariffs to some renewable energy(RE)equipment is relatively low at 3.5 per cent,some members applied tariffs can be as high as 12 per cent,with significant variations.On the other hand,applied tariffs for fossil fuels are generally low at 0.8 per cent for crude oil,1.6 per cent for c
193、oal and around 2-2.4 per cent for coke and other fuels(among the top ten importers).In the automotive sector,applied tariffs are generally higher than in the energy sector:on average 11 per cent for hybrid and electric vehicles(EVs),with some members having tariffs as high as 61.5 per cent.Overall,a
194、verage tariffs applied to conventional combustion vehicles are comparable to those for hybrid and electric ones.However,low-carbon vehicles exported to major markets(representing a global market share of 55 per cent)What are import tariffs?An import tariff(also known as a customs duty on imports)is
195、a financial charge or tax on imported goods due on their importation.Most customs duties are imposed on an ad valorem basis-that is,based on the value of the imported good (e.g.a 10 per cent duty on a computer worth USD 1,000 will be USD 100).Other types include“specific”tariffs based on the number
196、or weight of imports.Most-favoured-nation duties are the standard customs duties that WTO members apply to all other WTO members.WTO members experiences in using tariff reductions to achieve climate action objectivesThe WTO EDB shows that at least 31 WTO members from all regions and levels of econom
197、ic development have used tariff reductions for environmental purposes.In the Trade Policy Reviews(TPRs)of these economies,there are 53 examples of tariff reductions,mostly for RE technologies(25),followed by low-carbon and EVs(11).Forexample:Nicaragua provides tariff exemptions to machinery,equipmen
198、t,materials and inputs used in new RE projects(2021 TPR);Mongolia RE research and production equipment from customs duties(2021 TPR);Argentina has an import quota(where lower tariffs are applied)of 6,000 hybrid,electric and hydrogen fuel cell motor vehicles (2021 TPR);Thailand promotes the use of RE
199、 through import tariff exemption or reductions(2020TPR);Samoa permits duty-free imports of“energy saving devices”(e.g.EVs)(2019 TPR);Egypt has fixed customs tariffs at 2 per cent for imported equipment and materials relating to solar and wind energy(2018 TPR);Barbados(2022 TPR)and the United States(
200、2022 TPR)provide tariff exemptions for organic farming and lumber,respectively;and Malawi(2016 TPR),Tajikistan(2021 TPR),Georgia(2022 TPR)and Pakistan(2022 TPR)provide tariff exemptions for goods needed at a time of disaster(including for food).TRADE POLICY TOOLS FOR CLIMATE ACTION|27still face appl
201、ied tariffs that are 1.6 to 3.9 percentage points higher than for conventional combustion vehicles.Reviewing import tariffs could therefore be an effective policy tool that governments could deploy to promote the affordability and uptake of products needed for the transition to a low-carbon economy,
202、such as sustainably sourced RE equipment and low-carbon and EVs.Evidence of such potential has already been seen in the wind and solar energy sectors,where economies of scale have contributed to lower production costs.9Some economies and regions have started exploring the option of revising tariff l
203、evels(see box).For example,since Asia-Pacific Economic Cooperation(APEC)leaders committed in 2012 to reduce tariff rates of 54“environmental goods”to 5 per cent or less,exports and imports of such goods have increased by 5.7 per cent and 13.5 per cent,respectively (APEC,2021).Recent analysis suggest
204、s that the use of global supply chains in the photovoltaic(PV)market saved PV installers up to USD 85 billion from 2008 to 2020 in China,Germany and the United States,and that solar panel prices would be 2030 per cent higher in 2030 in a scenario without globalized supply chains(Helveston et al.,202
205、2).Furthermore,global trade in solar PV products could increase solar power generation by 750 gigawatts(GW)by 2060 if half of the existing trade barriers were removed,while it would decrease by 160370 GW in a scenario where more trade barriers were imposed(Wang et al.,2021).As described above,there
206、is significant scope for reviewing import tariffs currently applicable in certain carbon-intensive and lower-carbon sectors(see box).Rebalancing tariffs by even a relatively small number of percentage points could make an important contribution to reducing RE costs and increasing the uptake of low-c
207、arbon technologies.What could be done to align import tariffs with wider climate action policy plans?At the WTO,members have negotiated maximum import tariff rates for most goods.This means that members are free to revise and potentially reduce their tariffs to align them with their climate action p
208、lans,either unilaterally or as part of wider trade and climate cooperative approaches.Tariffs for key goods required for the transition to a low-carbon economy could be revised where appropriate to accelerate the green transition.The WTO Secretariat can support such efforts by providing technical as
209、sistance upon request and by improving knowledge and understanding of how tariffs have been used to achieve climate objectives.Discussions already ongoing in various WTO bodies should contribute to a better understanding of how revising import tariffs on selected goods linked to the just transition
210、to a low-carbon economy could be used by members to support their climate change mitigation plans.Average applied tariffs on RE equipment and fossil fuels(among top ten importers)Certain RE equipment 3.2 per cent compared with crude oil-0.8 per cent coal 1.6 per cent coke&semi-coke 2 per cent petrol
211、eum gases&other gaseous hydrocarbons 2.1 per cent pitch 2.2 per cent oils(coal tar)2.4 per centTrade remedies in the context of climate change strategiesTrade remedies are border measures usually additional duties applied by governments on imports of a product where the total quantity of the imports
212、 has surged(safeguard measures)or the imports from a given source are dumped(sold at less than their normal value)or subsidized(anti-dumping and countervailing measures,respectively)and where such imports have been found to cause injury to the competing domestic industry.Trade remedies form an integ
213、ral part of the multilateral trading rules with detailed procedural and substantive requirements that must be fulfilled to have the right to apply such measures.The use of trade remedies on imports of some renewable energy goods,such as solar panels and wind turbines,has increased in recent years.Th
214、e WTOs Trade Remedies Data Portal contains information on anti-dumping(AD)and countervailing duty(CV)actions taken by WTO 28|TRADE POLICY TOOLS FOR CLIMATE ACTIONmembers on certain renewable energy goods.It includes 35 AD and 19 CV duty investigations initiated between 2008 and 2021 on certain solar
215、(16 and five,respectively),wind(13 and seven)and biodiesel(six and seven)products.*All WTO members have the right to use trade remedies,and whether and how(within the constraints of the WTO rules)any individual member does so is the result of its own policy decisions.In taking such decisions,members
216、 consider a host of factors and elements,which may in some cases include climate change impacts.*The products in question were identified using the followingkeywords:solar,photovoltaic,biodiesel and wind.TRADE POLICY TOOLS FOR CLIMATE ACTION|29#6SubsidiesPolicy toolUnlock additional resources to ass
217、ist climate action by reforming environmentally harmful support measures.Policy tool30|TRADE POLICY TOOLS FOR CLIMATE ACTION#6 SubsidiesHow can reforming environmentally harmful support measures help mitigate climate change and promote sustainable trade?Government support measures can be important p
218、olicy tools to correct market failures and enhance social welfare.At the same time,if not well calibrated,they can distort production and trade,reduce economic efficiency,exacerbate negative spillovers,and cause damage to the environment and human health.The potential for government support measures
219、 to exacerbate environmental degradation and impede the transition to a low-carbon economy has been widely discussed.This is relevant for sectors including in fossil fuels,hard rock mining,agriculture,fisheries,forestry,transport,water supply and consumption,and construction.A 2022 study estimates t
220、hat the world is spending at least USD 1.8 trillion a year,equivalent to 2 per cent of global GDP,on subsidies that are leading to the destruction of ecosystems and species extinction(Koplow and Steenblik,2022).According to World Bank estimates,subsidies for fossil fuels,agriculture and fisheries al
221、one amount to USD1.2trillion per year in fiscal expenditures(World Bank,2023).While the impact of detrimental subsidies is cause for concern,reforming and repurposing subsidies could offer promising environmental benefits while freeing up scarce fiscal resources.The International Institute for Susta
222、inable Development(IISD)estimates that reforming fossil fuel subsidies by 2025 by rationalizing harmful subsidies would reduce CO2 emissions by an average of 6percent by 2030.The IISD further estimates that reinvesting just a third of these savings into energy efficiency and renewable energy would a
223、dd an additional 3per-cent reduction in CO2 emissions(IISD,2022).In the area of agriculture,the Organisation for Economic Co-operation and Development(OECD)has identified vast opportunities for reforms that could lead to lower GHG emissions while ensuring broad access to nutritious food,such as phas
224、ing out price support measures that could harm the environment and enhancing resilience towards extreme weather events.Such changes could also align the sector with climate goals.The OECD also recommends the introduction of an effective system that puts a price on GHG emissions coming from agricultu
225、re(OECD,2022a).10 What are subsidies and support measures?Governmental support measures provide financial or other incentives to firms to promote certain outcomes.They can take different forms,including direct government expenditures,tax incentives,equity infusions,soft loans,government provision of
226、 goods and services,and price support.The WTO Agreement on Subsidies and Countervailing Measures(SCM Agreement)construes a subsidy as a financial contribution,income,or price support provided by a government or a public body which confers a benefit to its recipient.The Agreement regulates subsidies
227、that are specific,i.e.the eligibility for which is limited to certain beneficiaries.Examples of support measures for climate action notified to the WTOSince 2009,over 2,500 support measures adopted for climate action have been notified to the WTO by 78 members(EDB).The environment-related objectives
228、 of such support include afforestation/reforestation,air pollution reduction,alternative and renewable energy,climate change mitigation and adaptation,energy conservation and efficiency,and ozone layer protection.Some recent examples include:Australias Clean Technology Innovation Programme supportin
229、g the development of clean technologies to reduce GHG emissions;Lao PDRs profit,value added and other tax exemptions for energy efficiency investments;El Salvadors direct grants for reforestation and fruit tree diversification projects;and Mauritiuss Bio-Farming Support Scheme increasing accessibili
230、ty of farmers to organic inputs and promoting organic farming.TRADE POLICY TOOLS FOR CLIMATE ACTION|31All of these studies suggest that phasing out and repurposing environmentally harmful subsidies could unlock substantial resources to support positive action on climate.In any subsidy reform process
231、,a variety of economic,trade and social considerations would come into play,including those related to a just and equitable transition to a low-carbon economy.There would also be potential challenges from vested interests as certain subsidy programmes were phased out(IMF-OECD-World Bank-WTO,2022).Gr
232、eater transparency and a deeper understanding of the flows of subsidies are prerequisites to ensuring effective and accountable reform.In addition,increased global cooperation and dialogue could have a positive role in preventing an inefficient“race”to subsidize environmentally positive,or“green”,te
233、chnology,which could cause avoidable trade tensions,distort international competition,and disproportionately harm smaller,fiscally constrained developing economies.What could be done to align support measures with wider climate action policy plans?A better understanding of the environmental impacts
234、of existing subsidies and other support measures across all sectors would help to identify the priorities for reform in this area.In this context,careful design of any new subsidies could contribute to addressing the climate crisis while minimizing trade frictions and other potential negative spillo
235、vers.The environmental impacts of support policies and the possibility of repurposing them to support climate change mitigation and adaptation plans could be evaluated by governments.WTO members have increasingly notified support measures for climate action(see box).Moreover,the WTO not only provide
236、s a forum to address and resolve trade-related challenges but also facilitates enhanced trade cooperation in support of sustainable development.Issues relating to improving transparency on subsidies,and evaluating the effectiveness of existing rules to address certain types of subsidies,are frequent
237、ly raised by members in various WTO bodies,such as the General Council,the Committee on Subsidies and Countervailing Measures,the Committee on Agriculture,and the Committee on Trade and Environment(IMF-OECD-WorldBank-WTO,2022).At the WTO Ministerial Conference in June 2022,tradeministers demonstrate
238、d the important role the WTO can play on subsidy reform when they reached a landmark agreement to curb USD 22 billion in annual public spending on harmful fisheries subsidies that encourage illegal,unreported,and unregulated fishing,fishing overfished stocks and fishing in the unregulated high seas(
239、WTO,2023a).These are resources that can be put to better use.A second phase of these negotiations is ongoing to additionally reduce subsidies to overcapacity and overfishing.Furthermore,two new plurilateral environmental initiatives at the WTO specifically address the environmental effects and poten
240、tial reform of subsidies.First,within the Trade and Environmental Sustainability Structured Discussions,participating members11 are discussing how to identify the environmental and trade impacts of subsidies.They are reviewing existing information to better understand these impacts and potential inf
241、ormation gaps and examining opportunities to address such impacts.Participants have deliberated on agricultural,fossil fuel,industrial and“green”or environmentally positive subsidies.These discussions aim to intensify work on areas of common interest,promote transparency,and identify concrete action
242、s that members could adopt in an inclusive and transparent manner,taking into account the diversity of the membership and specific development needs.Second,the co-sponsors of the Fossil Fuel Subsidy Reform initiative underway at the WTO are focusing their work on the comprehensive benefits spanning
243、trade,economy,society and the environment of addressing fossil fuel subsidies and reallocating government funds towards green,climate-resilient projects.The participating members12 have called for enhanced transparency on fossil fuel subsidies and for balancing developmental and social consideration
244、s during the reform of these subsidies.Participants have also discussed areas where the WTO could contribute to efforts to advance reform,including promoting good practices to ensure that fossil fuel support measures adopted during energy crises remain targeted,transparent and temporary in nature.Ot
245、her efforts could include developing a deeper understanding of the classification of subsidies based on trade and environmental effects and enhancing subsidy transparency by making better use of existing WTO mechanisms.Finally,some participants in the WTO Dialogue on Plastics Pollution and Environme
246、ntally Sustainable Plastics Trade have also raised the relevance of subsidies to virgin plastics(i.e.new materials that are often used to manufacture plastic products),in particular in the context of their effects on the competitiveness of potential effective and environmentally sustainable alternat
247、ive plastics andnon-plastic substitutes.As the global community seeks to increase climate financing,especially to support developing economies quest for a just transition,repurposing environmentally harmful and market-distorting subsidies can be a win-win for people and the environment.32|TRADE POLI
248、CY TOOLS FOR CLIMATE ACTION#7Trade financePolicy toolSupport the diffusion of climate-related technologies and equipment by facilitating and increasing trade finance,such as loans and guarantees.Policy toolTRADE POLICY TOOLS FOR CLIMATE ACTION|33#7 Trade financeHow can trade finance help mitigate an
249、d adapt to climate change,especially in developing economies?For global merchandise trade flows of over USD25trillion annually to flow smoothly,there needs to be a well-functioning trade finance market serving the needs of traders,especially those in developing economies where requests for trade fin
250、ance are more likely to get rejected.Indeed,some 60-80per cent of world trade relies on trade finance,such as trade credit and insurance/guarantees,mainly of a short-term nature.International supply chains rely on sophisticated supply-chain financing operations,which optimize payment flows throughou
251、t the chain of suppliers,including for SMEs.In general,the supply of trade finance meets demand in only a few regions of the world.Recent WTO-International Finance Corporation studies on West Africa and the Mekong regions reveal that available trade finance benefits mainly well-established importers
252、 and exporters,leaving many SMEs and women-led businesses unserved.No more than 25per cent of these economies trade is supported by trade finance.The studies show that raising this trade coverage from 25 per cent to 40percent would increase annual trade flows by 8percent on average,resulting in an i
253、ncrease of 80percent of trade flows in ten years(WTO and IFC,2022;WTO and IFC,2023).At the same time,important efforts have been undertaken to explore“greening trade finance”(see box),not least in the context of the OECD Arrangement on Officially Supported Export Credits.In October 2021,participants
254、 in the OECD Arrangement agreed to end export credit and tied aid support for unabated coal-fired power plants(i.e.coal power without carbon capture utilization and storage)(OECD,2022b).In March 2023,they also agreed in principle to expand the scope of green or climate-friendly projects eligible for
255、 longer repayment terms,as permitted under the OECDs Climate Change Sector Understanding,which sets out to provide adequate financial terms to projects identified as significantly contributing to climate change mitigation.The expanded scope now covers environmentally sustainable energy production,C0
256、2 capture storage and transportation,and the transmission,distribution and storage of energy.Also covered are clean hydrogen and ammonia,low-emissions manufacturing,zero and low-emissions transport and clean energy minerals and ores.While information on the specific trade finance gap between demand
257、and supply for climate-related goods is still limited,it is probably of a similar nature to the overall trade finance gap and should be closed to What is trade finance?Trade finance comprises credit facilities used by importers and exporters to facilitate international trade.These instruments bridge
258、 risks and the time gap between when the exporter wants to receive payment for producing and shipping goods and when the importer receives them,making it easier for importers and exporters to engage in international trade transactions.Trade finance for climate projects:the case of the Asian Developm
259、ent BankThe Asian Development Bank(ADB)Trade and Supply Chain Finance Program aims to close the trade finance gap,which widened to an estimated USD 2.5 trillion in 2022.Since 2009,the Program has provided USD 67 billion to support trade through guarantees,loans and knowledge support.In light of the
260、ADBs commitment to making regional trade and supply chains greener and more resilient,it also supports transactions that contribute to achieving economies global climate action goals.For example,the ADB worked with Basisbank to help Panex,a producer in Georgia of innovative thermal building panels t
261、hat reduce energy waste.The ADB provided USD 2 million to Panex to help it import energy-efficient raw materials and to export its products to Armenia and Azerbaijan.Buildings are responsible for about 40 per cent of global energy consumption.ADBs partnership with Basisbank and Panex is helping to r
262、educe GHGs in Georgia and neighbouring countries.34|TRADE POLICY TOOLS FOR CLIMATE ACTIONincrease trade in products and technologies needed for the transition to a low-carbon economy and for climate change adaptation.Projects essential to decarbonize economies,such as the construction of renewable e
263、nergy generation plants,depend on importing affordable inputs from manufacturers in other economies.The same applies in climate change adaptation,where international trade is crucial for many developing economies to obtain drought-resistant crop varieties or products needed to adapt urban infrastruc
264、ture so that it can withstand flash floods or extreme heat.International trade plays a crucial role,therefore,in ensuring that the supply of products required for climate action reaches those most in need in a timely and affordable fashion.Without sufficient flows of trade finance to facilitate the
265、importation of key inputs,many climate-related projects may be delayed or cancelled.What could be done to improve trade finance flows for climate-related products and projects and align them with wider climate action policy plans?Banks report that common barriers to trade finance availability includ
266、e the difficulty of borrowers to meet the requirements of banks providing trade finance,insufficient collateral of borrowers for the high perceived risk and shortages of low-cost funding.To breach the trade finance gap,it is important that relevant parties including private banks(which account for m
267、ost of the trade finance market),export credit agencies,and regional development banks enhance their existing efforts to mobilize resources to increase trade finance programmes.One way they can do so is to join forces to develop risk-sharing frameworks that support trade in the products underpinning
268、 the energy transition and climate change adaptation projects.For example,the European Bank for Reconstruction and Development has partnered with financial institutions to promote international trade transactions that disseminate green technologies in their markets.Efforts at the multilateral,region
269、al and national levels could aim to pool resources,wherever possible,and to develop risk-sharing mechanisms that take some of the risk away from the private sector,including by way of encouraging co-financing between the various providers of trade finance.The flow of trade finance can also be enhanc
270、ed by building the capacity of local lenders,strengthening banking relationships,improving access for SMEs and women-led businesses,and aiding decision-making through better quality data.These measures require coordinated action by financial institutions,national policymakers,regulators and internat
271、ional organizations.Climate finance is increasingly intertwined with Aidfor Trade financing,notably in renewable energy infrastructure.This is an area where Aid for Trade and various key stakeholders can play a catalytic role by helping to mobilize finance for green infrastructure and by helping the
272、 private sector take advantage of opportunities in the low-carbon economy(WTO,2022b).Moreover,technical assistance provided by regional or multilateral development agencies can focus on providing developing economies with trade finance facilitation programmes to enhance their financial institutions
273、trade finance departments.The WTO Secretariat and the International Finance Corporation are already working with small traders and financial institutions at the local level to improve understanding of the ecosystem of trade finance and to enhance access to trade finance training programmes in emergi
274、ng markets,mainly in Africa.TRADE POLICY TOOLS FOR CLIMATE ACTION|35#8Food and agriculturePolicy toolImprove how food and agricultural markets function,while contributing to climate action,by easing trade infood.Policy tool36|TRADE POLICY TOOLS FOR CLIMATE ACTION#8 Food and agricultureHow do policie
275、s affecting trade and markets for food and agricultural products relate to climate action?Climate change is expected not only to affect global temperatures and rainfall patterns,but also increase the frequency,intensity,and duration of extreme weather events(IPCC,2023).These events are likely to aff
276、ect markets for food and agriculture,both directly(impacting production and productivity)and indirectly(affecting transport and logistics,including ports).At the same time,in 2019,approximately 22 per cent of global GHG emissions came from agriculture,forestry and other land use(IPCC,2023).Trade alr
277、eady plays a key role in global food security.One in every five calories consumed around the world and possibly as many as one in four is traded(OECD-FAO,2022).As climate change deeply affects agricultural yields,this role will only increase,with trade helping food flow predictably and smoothly from
278、 where it is abundant to where it is needed.A variety of trade policies affect trade and markets for food and agriculture,including import tariffs,support measures and export restrictions.Import tariffs on food and agricultural products can raise domestic prices for consumers and input costs for pro
279、ducers.According to the multi-agency SDG Trade Monitor,the weighted tariff average that governments applied to imports of agricultural goods was 6.2 per cent in 2021.However,tariff peaks13 on some agricultural products are often much higher than average levels,at times even exceeding 1,000 per cent(
280、WTO,2023b).When government support to the agricultural sector is linked directly to prices,production or inputs,it can distort trade and markets,undermining the competitiveness of producers in other regions,and often resulting in further carbon emissions and inefficient or unsustainable patterns of
281、resource use.At the same time,other types of support are important for environmental protection and conservation,research,infrastructure development or training to help farmers improve their productivity sustainably.Data from the OECD for 2020-22 indicates that USD 630 billion per year on average wa
282、s provided by governments in the form of support to producers14(OECD,2023).Export restrictions on food can reduce its availability in global markets and raise international prices.While these measures can reduce prices domestically in the short term,they can also adversely affect access to food abro
283、ad,especially for vulnerable populations in net food-importing developing economies(Bout and Laborde Debucquet,2017).Export restrictions can also prompt other economies to introduce similar measures to keep domestic prices low,thereby raising global prices and exacerbating market volatility.All thes
284、e policies may impact governments climate mitigation or adaptation plans.Market access barriers affecting pro-climate technologies and innovations in What are some key trade-related policies affecting trade and markets for food and agriculture?Trade-related policies that may affect trade and markets
285、 for food and agricultural products include import tariffs,domestic support measures,and export restrictions.Governments often levy import tariffs on food and agricultural products(e.g.to generate revenue or protect domestic producers).Moreover,some governments provide support to the agricultural se
286、ctor,including assistance linked directly to prices,production or inputs.Finally,some governments impose export restrictions on food,which can reduce the availability of food on global markets and raise international food prices.“Food production and local producers are increasingly vulnerable to the
287、 adverse impacts of climate change.At the same time,recent reports have found that food systems are contributing up to one-third of greenhouse gas emissions,up to 80 per cent of biodiversity loss and use up to 70 per cent of freshwater.However,sustainable food production systems should be recognized
288、 as an essential solution to these existing challenges.”Antnio Guterres,UN Secretary-General,Food Systems Summit 2021 TRADE POLICY TOOLS FOR CLIMATE ACTION|37food and agriculture can also impede their uptake and use.Reforming policies that affect trade and markets can therefore strengthen climate ad
289、aptation and mitigation by improving food security and nutrition,and by strengthening the ability of producers,consumers and traders to cope with unexpected crises(WTO,2022g;WTO,2022j).At the same time,well-functioning,sustainable agriculture and food systems may provide game-changing ways to mitiga
290、te climate change and conserve biodiversity.Domestic climate action plans can contribute by reducing market distortions,lifting trade restrictions,improving competition and food safety standards,and in the longer term ensuring that the true costs of food and farm goods are reflected when traded.Gove
291、rnments could also support climate adaptation and mitigation efforts by strengthening environmental programmes,advisory services,research and rural infrastructure.Moreover,reforming and repurposing support to the farm sector can represent an important contribution to strengthening the sustainability
292、 and resilience of food systems(FAO,UNDP,UNEP,2021;FAO,WTO,WorldBank Group,2023).What could be done to align policies affecting trade in food with wider climate action policy plans?More open,fair and well-functioning global markets for food and agricultural products,anchored by the rules-based multi
293、lateral trading system,can play a critical role in shaping and assisting global climate action and strengthening global food security,including by reducing the impact of food crises hitting net food importing developing economies and LDCs the hardest.Governments could revisit the impact of import an
294、d export restrictions on food and agricultural markets,as well as how support policies affect various parties,with the aim of enabling consumers to access the food and nutrition they need.Changing agricultural practices and land use patterns could lower emissions related to farm production and trade
295、.Paired with coordinated climate action,trade could also contribute to reducing the sectors carbon footprint by allowing economies to specialize more in foods they can produce with a relatively low carbon footprint.Use of WTO agreements in curbing trade-restrictive measures can help reduce food and
296、fertilizer price volatility.Governments could also support the resilience of global markets for food and agricultural products by promptly sharing information about policies affecting trade,including by complying with WTO notification commitments,and by participating in other information exchange me
297、chanisms,such as the Agricultural Market Information System,an inter-agency platform aimed at enhancing food market transparency.WTO members experiences with climate-related agriculture measuresSince 2009,over 540 climate-related measures affecting the agriculture sector have been notified to the WT
298、O by 67 WTO members(WTO EDB).The number of measures notified over the years has increased constantly,with a sharp rise in measures notified in 2021(106).Policies include different types of support measures pursuing a variety of specific objectives,including climate-smart agricultural practices,low-c
299、arbon extension and infrastructure services,afforestation and soil degradation recovery,and relief from extreme weather events and climate-related crop losses.Some recent examples include:Australias provision of regional weather and climate guides to assist farmers in risk management decisions and i
300、n adapting to climate change(2021);Chiles extension and advisory services on smart irrigation and Energy Efficiency Pre-Investment Programmes(2021);Canadas Growing Forward 2 program supports On-Farm Energy Management conserve energy and reduce emissions(2021);El Salvadors efforts to adapt coffee pla
301、ntations to climate change(2021);Tongas research services for sustainable soil,crop and livestock production and climate resilient systems(2021);and Indias National Mission for Sustainable Agriculture(2021).38|TRADE POLICY TOOLS FOR CLIMATE ACTIONThe WTO agreements and various WTO bodies provide mem
302、bers with the opportunity to mobilize market incentives(market access),fiscal resources(domestic support and export competition)and a science-based regulatory framework(sanitary and phytosanitary systems)that could be efficiently leveraged to promote climate-smart agricultural innovation,disseminati
303、on of pro-climate technologies and practices,and better use of natural resources.In June 2022,at the 12th Ministerial Conference of the WTO,trade ministers agreed to a package of measures,including a declaration confirming the vital role of trade in improving global food security,a decision exemptin
304、g World Food Programme food purchases for humanitarian purposes from export restrictions,and an Agreement on Fisheries Subsidies,which commits members to eliminating the most harmful fisheries subsidies.WTO members are also currently negotiating an update to the rulebook on food and agriculture,with
305、 food security one of the priorities ahead of the 13thMinisterial Conference in Abu Dhabi in February2024.TRADE POLICY TOOLS FOR CLIMATE ACTION|39#9Sanitary and phytosanitary measuresPolicy toolProtect economies from the spread of disease and pests exacerbated by climate change by strengthening sani
306、tary and phytosanitary systems.15 Policy tool40|TRADE POLICY TOOLS FOR CLIMATE ACTION#9 Sanitary and phytosanitary measures.How can strengthening SPS systems help protect people,the environment and livelihoods in a world affected by climate change?Climate change is increasingly affecting ecosystems
307、and agricultural production across the world.Extreme weather events,droughts and rising temperatures also affect the global prevalence of pests and diseases and contribute to increased food safety risks.Plant pests are estimated to be responsible for the loss of up to 40 per cent of crop production,
308、costing the global economy more than USD 220 billion annually(FAO,2021).Invasive insects alone cost economies at least USD 70 billion per year and global warming may already be facilitating the establishment of pests in new areas.16 Crop losses not only have devastating economic and food security im
309、pacts,but can also lead to significant increases in the carbon emission intensity of agricultural production(Heeb et al.,2019).The impact of climate change on animal health is predicted to be considerable,including through the spread of vector-borne diseases,such as bovine fever,increased susceptibi
310、lity of animals to infections,and greater difficulty in controlling outbreaks of diseases(Rockov and Dubrow,2020;Paz,2021).17 Climate change therefore has consequences for the production of and trade in livestock and livestock products as well as for the livelihoods of farming communities and econom
311、ic growth.Livestock diseases can lead to higher emission intensities of related products by increasing mortality,and negatively affecting the wellbeing,productivity and fertility of livestock(Ezenwa et al.,2020;Kipling et al.,2021).Finally,long-term shifts in temperature,humidity,rainfall and overal
312、l weather patterns affect the persistence and occurrence of bacteria,viruses,parasites,harmful algae,fungi and corresponding foodborne diseases while increasing the risk of toxic contamination(WHO,2018).18 As climate change deeply affects agricultural yields,trade will increasingly play a key role i
313、n global food security by helping food flow predictably and smoothly to areas in need of supply(FAO,2018).At the same time,trade can also act as a transmitter of pests,diseases and food safety risks to areas where they were previously unknown.Economies normally protect themselves against such risks
314、by establishing SPS systems to regulate the importing of agricultural goods.Given the effects of climate change increasing these challenges,it is likely that the ongoing growth in SPS measures adopted in recent years(see box)will not abate.What are sanitary and phytosanitary(SPS)measures?Sanitary an
315、d phytosanitary(SPS)measures are rules and procedures that governments use to ensure that food and beverages are safe to consume and to protect animals and plants from pests and diseases.These measures must be anchored in science,based on a risk assessment and,where possible,follow the international
316、 standards,guidelines and recommendations developed by Codex Alimentarius,the World Organization for Animal Health,and the International Plant Protection Convention.Trends in the notification of SPS measures by WTO membersSince 1995,WTO members have notified more than 33,000 SPS measures to the SPS
317、Committee.While in 1995 less than 200measures were notified,in 2022 that number had grown to 2,172 measures in one year.These measures have been proposed and/or adopted by members from all regions and levels of development.Most measures(48 per cent)were adopted to protect food safety,followed by ani
318、mal health and plant protection(16 per cent each),protect humans from animal and/or plant pests or diseases(14 per cent)or to protect the territory from other damage from pests(6 per cent).TRADE POLICY TOOLS FOR CLIMATE ACTION|41To protect people from new pest and disease risks linked to climate cha
319、nge,it will be equally important to adopt strategies and policies that strengthen SPS systems and to direct investments towards such systems,not only to protect their own populations and agriculture sectors,but to ensure agriculture exports can continue to reach markets where they are needed.This is
320、 particularly relevant for vulnerable economies experiencing severe consequences of climate change and extreme weather events.What could be done to strengthen SPS systems and align them with wider climate action policy plans?WTO members recently recognized in the MC12 SPS Declaration that climate ch
321、ange will bring about new challenges for the design and application of SPS measures.The capacity to face these challenges will differ across economies and food systems.Many developing economies are particularly affected by the impacts of climate change because they are located in areas where climate
322、 change is likely to have the most severe consequences.Farmers,producers and governments in Africa,Asia and the Pacific,and Latin America and the Caribbean are the most affected as they often lack the skills and resources needed to adapt quickly.There is a pressing need,therefore,to prioritize effic
323、ient food safety,animal and plant health systems as an integral part of climate adaptation plans as well as for the benefit of people across the world.A better understanding of the ecology of pests,diseases and their hosts,and their improved surveillance,combined with improved modelling of climate c
324、hange and its impact,is necessary to analyse and prioritize risks and improve the reliability of predictions.Access to enhanced climate modelling and improvements to risk assessment capacities are required to enable governments to prepare for the consequences of climate change and to act accordingly
325、.Early warning systems and other rapid response mechanisms,such as contingency planning and readily available disease and pest eradication methods,will be equally important tools in preparing for emerging issues,especially in a world dealing with the effects of climate change.Adherence to the WTOs S
326、PS Agreement can also be an effective response by ensuring that new SPS measures introduced in the context of climate change remain anchored in science,based on risk assessments and,where possible,harmonized with other measures,following international standards,guidelines and recommendations and avo
327、iding unnecessary fragmentation.Discussions are ongoing at the WTO,not least at the SPS Committee,on how science,research and innovation could help sustainably increase production to feed a growing world population,while securing the livelihood of farmers and addressing emerging challenges like clim
328、ate change.The work of the Standards and Trade Development Facility(STDF)aims to support SPS capacity building in developing economies.Hosted by the WTO,the STDF is a global partnership that facilitates safe trade by driving SPS improvements in developing economies.The STDF brings together stakehold
329、ers from across agriculture,health,trade and development.It operates as a funding mechanism(in 2022,donors contributed over USD 6million in funding),providing support for the development and implementation of SPS projects.It also acts as a knowledge platform,piloting projects and learning from innov
330、ative,collaborative and cross-cutting approaches in SPS capacity development.As early as 2009,the STDF drew attention to the implications of climate change for emerging SPS risks and global trade flows,including through targeted events,publications and briefing notes.The WTO Secretariats technical a
331、ssistance activities can equally support reflections on how to strengthen regulatory frameworks in the face of growing challenges.42|TRADE POLICY TOOLS FOR CLIMATE ACTION#10Internal taxation and carbon pricingPolicy toolReduce policy fragmentation and compliance costs by improving coordination of cl
332、imate-related,non-discriminatory internal taxes,including carbon pricing and equivalent policies.Policy toolTRADE POLICY TOOLS FOR CLIMATE ACTION|43How can internal taxes and carbon pricing help mitigate climate change and why is coordination important?While the design and reform of internal taxatio
333、n may raise a series of important political,social and economic considerations,carbon pricing is often considered as a key policy option available for tackling climate change(Carbon Pricing Leadership Coalition,2022).21 Carbon pricing can be an effective policy as it provides an economic signal to emitters which incentivizes shifts in consumption and investment patterns,resulting in lower emission