CLIMATE CHANGE & TRADE: Opportunities for cooperative action

Joachim Monkelbaan

UNFCCCC COP 19, Warsaw

www.ictsd.org

• Trade = cooperative action

• How to use trade as a tool for

cooperative action for climate change?

Purpose of this presentation

WTO (Shrimp-Turtle AB report, note 23):

Trade restrictive environmental measures can be

justified if such measures have been agreed and

negotiated on a multilateral basis.

Also, they could be acceptable if they are adopted

“after serious and substantial efforts to reach an

international agreement” + co-operative efforts are

pursued to reach an agreement

Unilateral measures vs. cooperation?

International law defines cooperation duties

These duties include: warning, consultation and

information.

! There is an emerging rule of international law which

obliges States to cooperatively tackle problems for

which unilateral and uncoordinated approaches are

insufficient (e.g. climate change)

Unilateral measures vs. cooperation?

Co-operation duties in international

trade and climate change agts

Article 1 UN Charter defines as one major aim of the UN “to

achieve international co-operation in solving international

problems (…)”

Principle 7 Rio Declaration (further developing the preamble

of the 1972 Stockholm Declaration) “States shall cooperate

in a spirit of global partnership to conserve, protect and

restore the health and integrity of the Earth’s ecosystem.

(…)”

Arts. 3, 4.1, 4.2 and 7.2 UNFCCC stipulate and oblige

cooperation

Cooperation duties (cont’d) “The Berlin Mandate” (para 1 e and 1 g)

Art. 2 para. 1 (b) Kyoto Protocol

The Agreement Establishing the World Trade

Organization (Preamble): “objective of sustainable

development, seeking both to protect and preserve the

environment and to enhance the means for doing so in a

manner consistent with their respective needs and

concerns at different levels of economic development.”

2.6 Agreement on Technical Barriers to Trade (TBT):

“harmonising technical regulation”

Opportunities for cooperation

1. In WTO: clarify WTO law through interpretations, waivers

and amendments

2. In UNFCCC: multilateral process on coordinating policies

and measures (Art. 2.4 KP) or ad hoc process (Art. 13.4

KP) or of course RM Forum

3. Adopting and implementing the UNFCCC in itself does not

fulfil co-operation duties; UNFCCC itself sets a standard

for further co-operation efforts to achieve its objective

Opportunities for cooperation

4. In preferential trade agreements: chapters on climate

cooperation

5. Bilateral agreements: e.g. US-Mexico Bilateral Framework

on Clean Energy and Climate Change, US-China

cooperation, Australia-EU Partnership Framework.

‘Solar trade wars’ DS412 Canada — Certain Measures Affecting the Renewable Energy Generation Sector (Complainants: Japan and EU) 13 September 2010 DS452 European Union and Certain Member States — Certain Measures

Affecting the Renewable Energy Generation Sector (Complainant: China) 5 November 2012

DS456 India — Certain Measures Relating to Solar Cells and Solar Modules (Complainant: United States) 6 February 2013

DS443 European Union and a Member State — Certain Measures Concerning the Importation of Biodiesels (Complainant: Argentina) 2012

DS459 European Union — Certain Measures on the Importation and Marketing of Biodiesel and Measures Supporting the Biodiesel Industry (Complainant: Argentina) 15 May 2013

DS437United States — Countervailing Duty Measures on Certain Products from China (Complainant: China) 25 May 2012

Country

Product

Country Trade remedies Initiation of

investigation Measures in force

EU

Biodiesel US AD + AS 2008 2009

Biodiesel Canada AD + AS 2010 2011

Biodiesel Singapore AD + AS 2010 -

Biodiesel Argentina AD + AS 2012 2013

Biodiesel Indonesia AD + AS 2012 2013

Bioethanol US AD + AS 2011 2013

Glass fibres China AD 2009 2010

Solar panels China AD + AS 2012 2013

Solar glass China AD + AS 2013 [2013]

Peru

Biodiesel US AD 2009 2010

Australia

Biodiesel US AD + AS 2010 2010

US

Wind towers China AD + AS 2011 2012

Wind towers Vietnam AD + AS 2011 2012

Solar panels China AD 2011 2012

China

Polysilicon US AD + AS 2012 2013

Polysilicon EU AD + AS 2012 2013

Polysilicon South Korea AD + AS 2012 2013

India

Solar modules China AD 2012 [2013]

Solar modules US AD 2012 [2013]

Solar modules Malaysia AD 2012 [2013]

Solar modules Taiwan AD 2012 [2013]

Solar modules EU AD 2013 [2014]

Solar modules Japan AD 2013 [2014]

And there are still many

barriers though to

dissemination of

environmental technologies • Trade barriers: tariff and non-tariff

Therefore, ICTSD is proposing

Sustainable Energy Trade Initiatives

(SETIs) such as a

Sustainable Energy Trade Agreement

Thank you!