2022 part3

2/ DDG Paugam calls for coherent standards, support for small players in transition toward decarbonisation

5 JULY 2022

Global efforts towards decarbonizing value chains and pursuing more sustainable trade will require transparent and comparable standards and methodologies for measurement and traceability of carbon, as well as support to vulnerable players to prevent trade frictions and fragmentation, Deputy Director-General Jean-Marie Paugam said on 5 July. Speaking at the event “Facilitating sustainable and inclusive trade for our planet,” organized by the WTO and the International Trade Centre (ITC), DDG Paugam said the two organizations can play an important role in this regard

Minister

Ambassadors and colleagues

Ladies and Gentlemen

It is my great pleasure to welcome you to Facilitating Inclusive and Sustainable Trade for our Planet.

My name is Jean-Marie Paugam, and I am WTO’s Deputy Director-General.

We co-organize this event with our close partner, the International Trade Centre.

We are two international trade organizations increasingly working on leveraging trade to contribute to environmental outcomes.

Our work on trade and environment is not only complementary, but we also greatly impact each other’s work.

— WTO’s work is located “upstream,” providing policy and technical expertise on issues at the trade and environment nexus to rule-making.

— ITC’s work is located “downstream,” providing critical technical assistance to a global network of micro, small, and medium sized enterprises (MSMEs) transitioning to greener circular production and trade.

Our objective today is to discuss and identify solutions for how sustainable trade can be facilitated to help companies and governments meet net-zero commitments made in the UN Climate Change Conference in Glasgow — COP26 — in ways that support small businesses and developing countries.

We started planning for this event after Glasgow. Since then trade and environment issues have receive increasing high-level political attention at the WTO and internationally.

— Today 88 WTO members are involved in at least one of three major environment initiatives at the WTO — the Trade and Environmental Sustainability Structured Discussions (TESSD), the Informal Dialogue on Plastics Pollution and Sustainable Plastics Trade (IDP), and Fossil Fuel Subsidy Reform (FFSR).

— The new WTO Agreement on Fisheries Subsides coming out of our Twelfth Ministerial Conference last month marks the first time that WTO members have adopted a multilateral trade deal with environmental issues at its very core.

— Some of our Members have been working on a Trade Ministers’ coalition for Climate.

But the real transition toward a sustainable economy will first and foremost be carried out by the Private Sector. Companies are investing as never before in net-zero strategies, sustainably produced products and decarbonization of global supply chains.

Both public and private efforts translate around the world into an incredible effort to put a price on carbon as well as develop carbon measurement and accounting standards. It is also important to take into account issues of verifiability and certification — and to avoid double counting. This is an unprecedented and most welcome commitment to the green economy.

Yet, from a world trade perspective, this effort is also associated with some challenges.

Source: wto.org