Template-type: ReDIF-Paper 1.0 Author-Name: Ronald Steenblik Author-Workplace-Name: OECD Author-Name: Dominique Drouet Author-Workplace-Name: Recherche Développement International Author-Name: George Stubbs Author-Workplace-Name: Environmental Business Journal Title: Synergies Between Trade in Environmental Services and Trade in Environmental Goods Abstract: This paper examines the synergistic relationships between trade in environmental services and trade in environmental goods. It forms part of a series of OECD studies that analyse various issues related to Paragraph 31(iii) of the World Trade Organization’s 2001 Doha Development Agenda, which mandates negotiations at the WTO on “the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services.” For the purpose of this study, environmental services are defined as wastewater management services, solid-waste management services, sanitation and similar services and other environmental services. Services related to the collection, purification and distribution of water are also discussed in the paper. After describing the nature of each environmental service, the paper identifies broad categories of goods used in the performance of those services, and notes that for some goods environmental services are what is driving growth in their markets. The analysis then draws on case studies of actual business-to-business exports of environmental services, mainly from OECD countries to developing countries, to form general insights into the kinds of environmental goods used by service providers, and how these goods are procured. The case studies provide qualitative evidence that many of the goods included on either the APEC or the OECD lists of environmental goods are used in the performance of environmental services. These include, in particular, items for holding, conveying, treating and filtering liquids, and instruments for monitoring and measuring. Many of these goods are procured from local suppliers, if not initially then over time as local demand for the associated services develops. The benefits to the businesses that engage environmental-service providers are many, allowing them to concentrate on their core activities, and to shift some of the liability of meeting environmental regulations to other companies. Local employment is also generated. The general implication of this study for developing economies is that the potential benefits to simultaneously liberalising trade in environmental services and in environmental goods are likely to be much greater than liberalising trade in only one or the other. Classification-JEL: F14; F18; O33; Q56 Keywords: developing countries, environmental goods, environmental services, trade Creation-Date: 2005-07-19 Number: 2005/1 Handle: RePEc:oec:traaaa:2005/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Cristina Tébar Less Author-Name: Steven McMillan Title: Achieving the Successful Transfer of Environmentally Sound Technologies: Trade-related Aspects Abstract: This report examines factors that have proven helpful in achieving the successful transfer of environmentally sound technologies (EST) to developing countries. It provides an overview of the main issues lying behind trade-related aspects of EST transfers. It then briefly examines the main channels for the transfer of such technologies and the factors which are relevant to technology transfer in general, and to EST transfer in particular. It concludes with a summary of conditions for successful EST transfers which seem to be particularly relevant in the context of trade. These include government regulation and marketbased instruments, trade-related policies and practices, intellectual property rights, capacity, and financing. The report is based on the extensive literature dealing with technology transfer in general, and EST transfer specifically, and on empirical work summarised in a range of case studies. Classification-JEL: F18; O33; Q56 Keywords: developing countries, environmentally sound technologies, technology transfer, trade Creation-Date: 2005-08-25 Number: 2005/2 Handle: RePEc:oec:traaaa:2005/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Maxime Kennett Author-Name: Ronald Steenblik Title: Environmental Goods and Services: A Synthesis of Country Studies Abstract: This study presents a synthesis of 17 country studies on environmental goods and services (EG&S) commissioned by the OECD, UNCTAD and the UNDP. The countries examined are Brazil, Chile, China, Cuba, the Czech Republic, the Dominican Republic, Guatemala, Honduras, Israel, Kenya, Korea, Mexico, Nicaragua, Pakistan, Panama, Thailand and Vietnam. Its aim is to identify determinants of demand for EG&S; to show common themes and experiences in the EG&S markets of different countries; and to draw attention to key trade, environment and development policy linkages. It also seeks to contribute to the exchange of expertise and experience in the area of trade and environment so that liberalisation of trade in EG&S can benefit all countries, developing and developed alike. Classification-JEL: F14; F18; Q56 Keywords: developing countries, environmental goods, environmental services, trade Creation-Date: 2005-11-29 Number: 2005/3 Handle: RePEc:oec:traaaa:2005/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ronald Steenblik Title: Environmental Goods: A Comparison of the APEC and OECD Lists Abstract: This paper compares two lists of environmental goods that have been used in the WTO negotiations on liberalising trade in environmental goods and services. It describes the genesis of the lists, which were compiled in the late 1990s. The OECD list was developed as a basis for analysing trade and tariffs. The APEC list emerged from nominations by member economies of the Asia-Pacific Economic Co-operation forum, as part of an effort to attain early voluntary liberalisation of trade in particular sectors. The concluding section of the chapter identifies common elements in the two lists and explains important differences. Keywords: environmental goods, pollution-control technology, trade negotiations Creation-Date: 2005-11-29 Number: 2005/4 Handle: RePEc:oec:traaaa:2005/4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ronald Steenblik Title: Liberalising Trade in 'Environmental Goods': Some Practical Considerations Abstract: This chapter explores some practical issues that have arisen in the WTO negotiations on environmental goods and services, especially issues pertaining to liberalising trade in environmental goods. Since environmental goods are not covered by a single chapter of the Harmonized Commodity Description and Coding System (HS) — the international basis for codifying trade and tariffs — an agreement on environmental goods must be defined by reference to an agreed list. In such a case, when the most detailed (6-digit) product level is insufficiently specific, it becomes necessary to agree to create common commodity descriptions at the 8- or 10-digit level in national tariff schedules. Another important concern is the so-called “dual use” problem: many goods with environmental uses also can be used for nonenvironmental purposes. Possible solutions to these problems are explored, drawing on past experience in negotiating and implementing sectoral liberalisation agreements. The chapter also discusses issues relating to separate tariff lines for whole plants and to goods distinguished by their superior environmental performance in use. Finally, it considers some procedural and institutional issues that will have to be addressed before an agreement is concluded, notably whether to allow for the periodic addition of new goods to the agreement, and how to deal with the problem of changes over time in the relative environmental performance of competing goods. Creation-Date: 2005-12-16 Number: 2005/5 Handle: RePEc:oec:traaaa:2005/5-EN Template-type: ReDIF-Paper 1.0 Author-Name: Monika Tothova Title: Liberalisation of Trade in Environmentally Preferable Products Abstract: It addresses the issue of environmentally preferable products (EPPs) in the context of the Doha Development Round and the Johannesburg Plan of Implementation. It reviews available definitions; describes existing compilations of products and identifies broad categories of EPPs; and offers case studies on three groups of products addressing benefits (and costs) of liberalisation for selected countries and products. Three groups of products, including their parts and complements, were identified for case studies owing to their potential trade, environmental and developmental benefits: sisal and other fibres of the genus Agave, bicycles and solid-fuel cooking stoves. Classification-JEL: F14; F18; Q56 Keywords: developing countries, environmental goods, environmental services, trade Creation-Date: 2005-11-29 Number: 2005/6 Handle: RePEc:oec:traaaa:2005/6-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ronald Steenblik Author-Workplace-Name: OECD Title: Liberalisation of Trade in Renewable-Energy Products and Associated Goods: Charcoal, Solar Photovoltaic Systems, and Wind Pumps and Turbines Abstract: Numerous studies and events over the past several years have stressed the importance of eliminating barriers to trade in renewable forms of energy and the technologies used to exploit them, as part of a broader strategy to reduce dependence on more-polluting and less secure energy sources. This paper examines the implications of liberalising trade in renewable energy, focussing on several representative fuels and technologies (charcoal, solar photovoltaic systems and their complements, and wind turbines and wind pumps). Eliminating tariffs on renewable energy and associated goods — which are 15% or higher on an ad valorem basis in many developing countries — would reduce a burden on consumers of energy, particularly people living in rural areas of developing countries, as it is in such areas that many renewableenergy technologies are making, and are likely to make, their greatest contribution. Manufacturers located in OECD countries would benefit from increased trade in renewable-energy technologies and components, but so would a growing number of companies based in developing countries. The elimination of tariffs would also help to level the playing field between aid-financed goods, which often benefit from tariff waivers, and goods imported through normal market transactions, which often do not. For the maximum benefits of trade liberalisation in renewable-energy technologies to be realised, however, additional reforms may be required in importing countries’ domestic policies, especially those affecting the electricity sector in general, rural electrification in particular, and the environment. Keywords: developing countries, environmental goods, environmental technologies, renewable energy, trade Creation-Date: 2005-12-09 Number: 2005/7 Handle: RePEc:oec:traaaa:2005/7-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ronald Steenblik Author-Workplace-Name: OECD Title: Liberalisation of Trade in Renewable Energy and Associated Technologies: Biodiesel, Solar Thermal and Geothermal Energy Abstract: This paper, the second in a series, examines the implications of liberalising trade in three forms of renewable energy: biodiesel, solar-thermal water heaters, and geothermal energy systems. Eliminating tariffs on renewable energy and associated goods — which are 15% or higher on an ad valorem basis in many developing countries — would reduce a burden on consumers of energy, particularly people living in rural areas of developing countries, as it is in such areas that many renewable fuels and renewable-energy technologies are making, and are likely to make, their greatest contribution. Manufacturers located in OECD countries would benefit from increased trade in equipment, but so would a growing number of companies based in developing countries. In the case of biodiesel, developing countries have the potential to become major suppliers to OECD countries. For the maximum benefits of trade liberalisation in biodiesel, and solar-thermal and geothermal technologies, to be realised, however, additional reforms may be required in importing countries’ domestic policies, especially those affecting the pricing of liquid fuels, competition in the electricity sector, and protection of the environment. Classification-JEL: F14; F18; Q42; Q48; Q56 Keywords: developing countries, environmental goods, environmental technologies, renewable energy, trade Creation-Date: 2006-04-04 Number: 2006/1 Handle: RePEc:oec:traaaa:2006/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jim Hight Author-Workplace-Name: Environmental Business International Author-Name: Grant Kirkpatrick Author-Workplace-Name: Environmental Business International Title: The Impact of Monitoring Equipmenton Air Quality Management Capacity in Developing Countries Abstract: Reflecting the desire for cleaner air, many developing countries have enacted clean air laws similar to those of developed nations, although to date most of these laws have been poorly enforced. A key starting point to better enforcement is obtaining comprehensive and reliable air-quality monitoring data. This report explores the impacts of air quality monitoring programmes implemented over the last decade in five developing countries: Morocco, the Philippines, Malaysia, Indonesia, and India. These case studies also examine the role of procurement of specialised equipment, usually imported, associated with the various air quality monitoring programmes. Keywords: air quality, developing countries, environmental goods, trade Creation-Date: 2006-04-04 Number: 2006/2 Handle: RePEc:oec:traaaa:2006/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jim Hight Author-Workplace-Name: Environmental Business International Author-Name: Grant Ferrier Author-Workplace-Name: Environmental Business International Title: Building Capacity to Monitor Water Quality: A First Step to Cleaner Water in Developing Countries Abstract: One of the key challenges to ensuring adequate supplies of fresh water and sanitary wastewater systems is to build the capacity of various stakeholders to manage and deliver water and sanitation services. One element of such capacity building is technological and includes the wide deployment of water quality monitoring and analysis equipment. This report explores four cases in China, India, Malaysia, and Chinese Taipei, where water-quality monitoring and protection capacity has been improved through the use of imported water-quality monitoring equipment combined with indigenous implementation. Keywords: China, Chinese Taipei, developing countries, environmental goods, India, Malaysia, trade, water quality Creation-Date: 2006-05-10 Number: 2006/3 Handle: RePEc:oec:traaaa:2006/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Joy A. Kim Author-Workplace-Name: OECD Title: Issues of Dual Use and Reviewing Product Coverage of Environmental Goods Abstract: Importing "environmental" goods which are also used for other than environmental purposes and ensuring that they represent the most appropriate technology for a particular environmental problem are key concerns to be addressed in the approaches currently being discussed under paragraph 31(iii) of the Doha Agenda. By drawing lessons from experiences with WTO sectoral agreements such as the Agreements on Information Technology (ITA), Trade in Pharmaceutical Products and Trade in Civil Aircraft as well as relevant national schemes, this paper explores possible options to address these two issues. Keywords: environmental goods, WTO Creation-Date: 2007-03-29 Number: 2007/1 Handle: RePEc:oec:traaaa:2007/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Michel Potier Author-Workplace-Name: OECD Author-Name: Cristina Tébar Less Author-Workplace-Name: OECD Title: Trade and Environment at the OECD: Key Issues since 1991 Abstract: This paper provides an overview of work on trade and environment in the OECD since the creation, in 1991, of the Joint Session of Trade and Environment Experts, later re-named Joint Working Party on Trade and Environment, and summarises the main conclusions and policy recommendations arising from that work. It describes work done in three key periods: • From 1991 to 1995, starting with the establishment of the Joint Session of Trade and Environment Experts, up to the conclusion of the Uruguay Round and the creation of the World Trade Organisation and its Committee on Trade and Environment. • From 1995 to 2001, spanning discussions up to the adoption of the Doha Development Agenda (DDA), in which Ministers mandated negotiations on a range of topics related to trade and environment. • From 2001 to 2008, focussing on analytical work to support discussions under negotiation in the DDA at the WTO and exploring emerging issues outside of the DDA. Creation-Date: 2008-02-20 Number: 2008/1 Handle: RePEc:oec:traaaa:2008/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Cristina Tébar Less Author-Workplace-Name: OECD Author-Name: Joy A. Kim Author-Workplace-Name: OECD Title: Checklist for Negotiators of Environmental Provisions in Regional Trade Agreements Abstract: This document provides a checklist on environmental issues for negotiators of regional trade agreements (RTAs) in order to provide guidance to countries wishing to include environmental provisions in RTAs. The checklist draws on countries’ experience of negotiating and implementing environmental provisions of RTAs, which other countries may find useful when considering their own approaches to environmental issues in RTAs. The checklist is intended to provide a reference to assist discussion of environmental issues, when the inclusion of environmental provisions is considered appropriate, before, during and after negotiation of trade agreements. It is by no means prescriptive. As the number and variety of RTAs continues to increase, the checklist should be viewed as a ‘living document’ that could be modified and updated as countries gain new experience. Creation-Date: 2008-09-23 Number: 2008/2 Handle: RePEc:oec:traaaa:2008/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Simone Gigli Title: Environment and Regional Trade Agreements: Developments in 2008 Abstract: This document provides a second update on developments in the field of regional trade agreements and environment covering the period late 2007 to December 2008. It complements the 2007 publication “Environment and Regional Trade Agreements”, and the first update presented to the JWPTE in December 2007 (COM/TAD/ENV/JWPTE/RD(2007)40/FINAL). It is based on publicly available information and refers to agreements which have been signed by the Parties, though not all have entered into force yet. It also includes information on recent Trade Promotion Agreements (TPAs) which were not covered by the first study. Creation-Date: 2009-03-24 Number: 2009/1 Handle: RePEc:oec:traaaa:2009/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ronald Steenblik Author-Workplace-Name: OECD Author-Name: Joy A. Kim Author-Workplace-Name: OECD Title: Facilitating Trade in Selected Climate Change Mitigation Technologies in the Energy Supply, Buildings, and Industry Sectors Abstract: It is in every country's interest that the deployment of carbon-change-mitigation technologies (CCMTs) be accomplished at the lowest possible cost to society and that their diffusion be rapid. Reducing barriers to trade is one way to accomplish that, especially given that it is unlikely that every country will become proficient in the production of every CCMT. This study provides a preliminary assessment of the significance of tariff and non-tariff barriers to trade in a representative selection of CCMTs chosen from among those that have been identified by the IPCC and the IEA as having a large economic potential for mitigation, are globally traded, and can be easily adapted to national circumstances. Those examined in the report include: (a) technologies, such as gas-fired reciprocating engines, used in the co-production of both process (or district) heat and electric power (CHP); (b) technologies, such as pipes and meters, used in the production and delivery of heating and cooling at the scale of a city district (DHC); (c) technologies that harness solar energy to heat water or heat or cool the air in buildings (SHC); and (d) relatively energyefficient electric motors and related systems. The study finds that trade in CCMTs faces higher tariffs in some non-OECD countries than in OECD countries. Judging from information provided by exporters in response to a questionnaire, non-tariff measures are common, and in some countries are acting as barriers to trade. Overcoming some of the general measures that impede trade will take time. However, the problems that lax enforcement of intellectual property rights, cumbersome customs-clearance procedures and non-transparent government procurement create for trade in CCTMs should be regarded as providing additional reasons for importing countries to address these issues urgently. Finally, importers may need, at the same time, to examine their domestic policies in order to address behind-the-border impediments to the diffusion of CCMT technologies. Creation-Date: 2009-05-04 Number: 2009/2 Handle: RePEc:oec:traaaa:2009/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Peter Gallagher Author-Name: Ysé Serret Author-Workplace-Name: OECD Title: Environment and Regional Trade Agreements: Developments in 2009 Abstract: This document is a third update on developments in the field of regional trade agreements and environment covering the period late 2008 to December 2009. It complements the 2007 publication “Environment and Regional Trade Agreements” prepared under the aegis of the Joint Working Party on Trade and Environment. It is based on publicly available information and refers to agreements which have been signed by the Parties, though not all have entered into force yet. Creation-Date: 2010-04-29 Number: 2010/1 Handle: RePEc:oec:traaaa:2010/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clive George Author-Workplace-Name: University of Manchester Author-Name: Ysé Serret Author-Workplace-Name: OECD Title: Regional Trade Agreements and the Environment: Developments in 2010 Abstract: This report provides an update on recent developments in the field of Regional Trade Agreements and the environment. Issues arising in the implementation of RTAs with environmental considerations are examined as well as experience in assessing their environmental impacts. It is the fourth update prepared under the aegis of the Joint Working Party on Trade and Environment. The report covers developments over the period from late 2009 to December 2010 and is based on publicly available information. Classification-JEL: F13; F18; N50; Q56 Keywords: environmental provisions, free trade agreements, regional trade agreements, trade and environment, trade policy Creation-Date: 2011-05-10 Number: 2011/1 Handle: RePEc:oec:traaaa:2011/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clive George Author-Workplace-Name: University of Manchester Title: Regional Trade Agreements and the Environment: Monitoring Implementation and Assessing Impacts: Report on the OECD Workshop Abstract: How are environmental provisions incorporated in regional trade agreements (RTAs)? What are the environmental impacts of RTAs? How can RTAs contribute to green growth? These questions were discussed at the fourth OECD Workshop on Regional Trade Agreements and the Environment, held by the OECD Joint Working Party on Trade and Environment (JWPTE) in Paris on 1-2 June 2010. Participants included JWPTE delegates and other representatives from OECD members and other countries, and representatives from intergovernmental organisations, non-governmental organisations and academia. Participants discussed characteristics of RTAs, free trade agreements and other trade arrangements, including co-operation activities and capacity building, public participation, consultation mechanisms and dispute settlement. The workshop also reviewed experiences in assessing the environmental impacts of such agreements, looking at ex ante as well as ex post evaluations. This document presents the main outcomes of the workshop. Classification-JEL: F13; F18; N50; Q56 Keywords: environmental provisions, free trade agreements, regional trade agreements, trade and environment, trade policy Creation-Date: 2011-05-10 Number: 2011/2 Handle: RePEc:oec:traaaa:2011/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ronald Steenblik Author-Workplace-Name: OECD Author-Name: Massimo Geloso Grosso Author-Workplace-Name: OECD Title: Trade in Services Related to Climate Change: An Exploratory Analysis Abstract: The deployment of technologies for the mitigation of greenhouse-gases (GHGs) is dependent on a wide range of services, including those that are imported. Business services, telecommunications services, and construction and related engineering services figure prominently. This paper aims to develop a better understanding of the specific roles that these services play in helping to mitigate GHG emissions, and to identify the major suppliers and consumers. It presents examples and mini-case studies that explore how particular services complement the deployment of GHG mitigating technologies. With respect to the four modes of services trade, instances of mode 1 (cross-border trade) trade taking place over the Internet appear to be more commonplace, often complementing movement of personnel. Examples of mode 2 trade (consumption abroad) typically involve training of a client’s personnel. Mode 3 trade (commercial presence) is critical for the provision of services that entail construction and operation of production facilities. The temporary movement of natural persons (mode 4) is also common, especially where expert judgement or supervision is required for a short period of time. Classification-JEL: F18; L84; L86; N50; Q42; Q56 Keywords: Business service, climate change, environmental goods, environmental services, trade and environment, trade policy Creation-Date: 2011-05-26 Number: 2011/3 Handle: RePEc:oec:traaaa:2011/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Evdokia Moïsé Author-Workplace-Name: OECD Author-Name: Ronald Steenblik Author-Workplace-Name: OECD Title: Trade-Related Measures Based on Processes and Production Methods in the Context of Climate-Change Mitigation Abstract: This paper provides an overview of existing measures relating to non-product-related processes and production methods (PPMs) adopted in the context of climate-change-mitigation policies, especially those linked to the life-cycle greenhouse-gas (GHG) emissions of particular products. Such domestic PPM-related requirements and schemes are important policy tools for promoting sustainable development and are aimed at addressing GHG emissions resulting from the activities involved in producing, processing and transporting the product to the final consumer. Their ostensive purpose is to promote better environmental outcomes and to ensure that domestic climate-change policies and incentives do not inadvertently undermine other environmental objectives. Even though the general objectives of the reviewed regulations and private schemes are comparable (e.g. the promotion of renewable-energy sources, or provision of information on the carbon footprint of goods), the approaches, level of detail, choices of instruments and targeted environmental characteristics vary considerably from country to country and from scheme to scheme. Some regulations rely more or less extensively on market mechanisms, attaching price premiums to certain types of products. Others introduce command-and-control provisions limiting the use of certain PPMs, variously defined in different countries. Still others target certain types of fuels eligible for public support, with varying eligibility criteria. Private schemes mainly use environmental sustainability claims to secure consumer preference. The choice of different instruments presumably entails different trade impacts. However, all of the reviewed measures and schemes are fairly new, and experience with their application and therefore their potential trade effects has so far been relatively limited. Classification-JEL: F13; F18; N50; Q56 Keywords: environmental provisions, processes and production methods, trade and environment, trade policy Creation-Date: 2011-08-03 Number: 2011/4 Handle: RePEc:oec:traaaa:2011/4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jean-Marc Burniaux Author-Workplace-Name: OECD Author-Name: Jean Chateau Author-Workplace-Name: OECD Author-Name: Jehan Sauvage Author-Workplace-Name: OECD Title: The Trade Effects of Phasing Out Fossil-Fuel Consumption Subsidies Abstract: Quoting a joint analysis undertaken by the OECD and the IEA, G-20 leaders committed in September 2009 to “rationalize and phase out over the medium term inefficient fossil-fuel subsidies that encourage wasteful consumption.” This report draws on previous OECD work to assess the impact on international trade of phasing out fossil-fuel consumption subsidies provided mainly by developing and emerging economies. The analysis employed the OECD’s ENV-Linkages General-Equilibrium model and used the IEA’s estimates of consumer subsidies, which measure the gap existing between the domestic prices of fossil fuels and an international reference benchmark. It shows that a co-ordinated multilateral removal of fossil-fuel consumption subsidies over the 2013-2020 period would increase global trade volumes by a very small amount (0.1%) by 2020. While seemingly negligible, this increase hides the large disparities that are observed across countries (or regions) and products. Under the central scenario, which assumes a multilateral subsidy removal over the 2013-2020 period, trade in natural gas would be most affected, with a 6% decrease by 2020. A reduction in the volume of both imports and exports from oil-exporting countries would be partly compensated by an expansion of trade flows (both imports and exports) involving OECD countries. This reallocation of trade flows would be most prevalent in products of energy-intensive industries. Looking beyond 2020, the contribution of oil-exporting countries to total world trade volumes would continue to be lower in 2050 than under the reference scenario. Classification-JEL: F17; F18; H23; O41; Q43; Q56 Keywords: climate change, fossil-fuel subsidies, general equilibrium models, greenhouse gas emissions, trade and environment Creation-Date: 2011-08-26 Number: 2011/5 Handle: RePEc:oec:traaaa:2011/5-EN Template-type: ReDIF-Paper 1.0 Author-Name: Peter Gallagher Author-Name: Ysé Serret Author-Workplace-Name: OECD Title: Implementing Regional Trade Agreements with Environmental Provisions: A Framework for Evaluation Abstract: This document sets out a framework for evaluating the implementation of environmental provisions in Regional Trade Agreements. The checklist approach to the evaluation of countries‘ experience of implementation complements the OECD‘s Checklist for Negotiators (2008). Among the issues addressed are institutional arrangements, co-operation, capacity building, public participation, resolution of differences and assessment. Classification-JEL: F13; F18; N50; Q56 Keywords: environmental provisions, free trade agreements, regional trade agreements, trade and environment, trade policy Creation-Date: 2011-10-01 Number: 2011/6 Handle: RePEc:oec:traaaa:2011/6-EN Template-type: ReDIF-Paper 1.0 Author-Name: Heymi Bahar Author-Workplace-Name: OECD Author-Name: Jagoda Egeland Author-Workplace-Name: OECD Author-Name: Ronald Steenblik Author-Workplace-Name: OECD Title: Domestic Incentive Measures for Renewable Energy With Possible Trade Implications Abstract: In recent years the manufacturing of renewable-energy technologies has become truly global. The associated rise in international investment and trade in goods and services related to renewable energy has been rapid, but it has not always been smooth. Already there have been challenges at the WTO, and the unilateral imposition of countervailing and anti-dumping duties, in response to some countries‘ policies on the grounds that they distort trade. Against this background, this paper surveys, through the lenses of market-pull and technology-push policies, the numerous domestic incentives used by governments to promote renewable energy, focusing on those that might have implications for trade — both those that are likely to increase opportunities for trade and those that may be inhibiting imports or promoting exports. Many OECD countries, and an increasing number of non-OECD countries, have established national targets for renewable energy. To help boost the rate of penetration of renewable energy in their economies, most of the same countries are providing additional incentives. Market-pull incentives for the deployment of renewable-energy-based electricity generating plants include quota systems, usually administrated through "green" certificates, and fixed per kilowatt-hour feed-in tariffs and premiums. Renewable fuels for transport are typically promoted by governments through obliging fuel suppliers to mix ethanol or biodiesel with their corresponding petroleum-derived fuels. Frequently, renewable fuels for transport also benefit from exemptions, or reductions in, fuel-excise taxes, and in a few countries from production bounties. Many national and sub-national governments also support capital formation in these industries with grants, subsidised loans, loan guarantees, or a combination of instruments. In some jurisdictions, access to government support schemes have been made conditional upon meeting certain minimum levels of domestic content. Such domestic-content requirements are highly controversial because of their direct effects on trade. These effects, and the effects of other policies in combination and in isolation, are examined through a graphical analysis of generic policies, using a simplified stylised representation of the relevant markets. The basic message is that while many domestic incentives are both increasing the supply of renewable energy and facilitating trade in associated technologies and renewable fuels, some — especially those combined with border protection or domestic-content requirements — are likely reducing export opportunities for foreign suppliers, and raising domestic prices for renewable energy as a consequence. Classification-JEL: F18; H23; L98; O38; Q42; Q56; Q58 Keywords: bioenergy, biofuels, environment, environmental subsidies, renewable energy, trade Creation-Date: 2013-06-27 Number: 2013/1 Handle: RePEc:oec:traaaa:2013/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Heymi Bahar Author-Workplace-Name: OECD Author-Name: Jehan Sauvage Author-Workplace-Name: OECD Title: Cross-Border Trade in Electricity and the Development of Renewables-Based Electric Power: Lessons from Europe Abstract: The uptake of renewable energy (RE) has been identified by a number of governments as a primary means for mitigating CO2 emissions from the electricity sector, and for making the transition to a low-carbon economy. The electric power output of some RE technologies, however, including those based on intermittent wind and solar energy, can vary considerably over short periods of time and thereby introduce instability into the electricity system. The risk of instability increases with higher shares of intermittent power sources connected to the electrical grid. Different means have been used to deal with this intermittency problem. Cross-border trade in electricity appears to be one of them since it enables countries to gain access to a more diversified portfolio of plants, producing over a wider geographic area. Preliminary results from an examination of the European electricity market confirm the importance of cross-border electricity trade in increasing the effective capacity factor of intermittent plants in the context of a growing share of intermittent renewables in the power sector. There are a number of policy issues that must first be addressed though, with some financial and administrative incentives provided to variable RE technologies discouraging RE producers from fully participating in electricity market operations and exerting downward pressure on wholesale electricity prices. The positive contribution that cross-border trade in electricity can make to address the variability problem not only depends on addressing challenges that renewable-energy technologies pose to electricity markets, but also necessitates the existence of an efficient cross-border electricity trading regime. Addressing those regulatory and administrative measures that are inhibiting growth in cross-border trade and the smooth operation of regional electricity markets would therefore help increase the potential for trade in electricity to facilitate growth in renewable energy. Classification-JEL: F18; L94; L98; Q42; Q56 Keywords: electricity markets, environment, renewable energy, trade, trade barriers Creation-Date: 2013-04-08 Number: 2013/2 Handle: RePEc:oec:traaaa:2013/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marnie Griffith Title: Measures Supporting Minerals and Primary Metals Extraction and Processing: Case Study: Australia Abstract: Efforts to document government support benefiting specific sectors or industries have so far paid scant attention to support given to the non-energy minerals sector. In this paper the issue of support for this sector is explored by way of a case study of Australia, a leading producer and exporter of minerals. After describing the mining sector in the context of the Australian economy and the role of government in the exploitation of the country’s vast resources, the study identifies and document support measures based on the OECD’s framework for organising and analysing support to the fossil-fuel sector. The study finds that government support to the mining industry is relatively limited. Measures through which the Australian federal government assists the mining industry tax concessions related to corporate expenditure on R&D and on exploration and other expenditure, a fuel-tax rebate and the provision of geoscientific data at zero or minimal cost. The State governments provide preferential electricity prices to aluminium smelters. Monetary estimates of the cost to government of these measures are provided where available. Classification-JEL: H25; H71; L52; L72; O13; Q38 Keywords: environment, Government Support, Non-Energy Minerals, trade Creation-Date: 2013-07-03 Number: 2013/3 Handle: RePEc:oec:traaaa:2013/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clive George Author-Workplace-Name: University of Manchester Title: Developments in Regional Trade Agreements and the Environment: 2012 Update Abstract: This report provides an update on recent developments in the field of Regional Trade Agreements and the environment. Issues arising in the implementation of RTAs with environmental considerations are examined as well as experience in assessing their environmental impacts. It is the sixth update prepared under the aegis of the Joint Working Party on Trade and Environment (JWPTE). The document covers developments from late 2011 to October 2012. It is based on publicly available information. Classification-JEL: F13; F18; N50; Q56 Keywords: environmental provisions, free trade agreements, regional trade agreements, trade and environment, trade policy Creation-Date: 2013-07-04 Number: 2013/4 Handle: RePEc:oec:traaaa:2013/4-EN Template-type: ReDIF-Paper 1.0 Author-Name: Claire Brunel Author-Workplace-Name: Georgetown University Author-Name: Arik Levinson Author-Workplace-Name: Georgetown University Title: Measuring Environmental Regulatory Stringency Abstract: Researchers have long been interested in whether environmental regulations discourage investment, reduce labour demand, or alter patterns of international trade. But estimating those consequences of regulations requires devising a means of measuring their stringency empirically. While creating such a measure is often portrayed as a data-collection problem, we identify four fundamental conceptual obstacles, which we label multidimensionality, simultaneity, industrial composition, and capital vintage. We then describe the long history of attempts to measure environmental regulatory stringency, and assess their relative success in light of those obstacles. Finally, we propose a new measure of stringency that would be based on emissions data and could be constructed separately for different pollutants. Classification-JEL: C26; C43; C83; D78; F18; F64; L51; Q52; Q53; Q58 Keywords: environmental regulations, environmental subsidies, trade and environment Creation-Date: 2013-08-22 Number: 2013/5 Handle: RePEc:oec:traaaa:2013/5-EN Template-type: ReDIF-Paper 1.0 Author-Name: Madison Condon Author-Workplace-Name: Fletcher School of Law and Diplomacy Author-Name: Ada Ignaciuk Author-Workplace-Name: OECD Title: Border Carbon Adjustment and International Trade: A Literature Review Abstract: An important source of political opposition to measures aimed at reducing emissions of greenhouse gases (GHGs) arises from concerns over their negative effects on the competitiveness of domestic firms, especially those that are energy-intensive and exposed to competition from foreign producers. Politicians and industry representatives alike fear that imports from countries without similar regulations can gain cost-of-production advantages over domestic goods. With many of the major economies of the world contemplating unilateral action to restrict their carbon emissions (while continuing to pursue co-ordinated multilateral action), the parallel concern of carbon leakage — whereby domestic reductions in emissions are partially or wholly counterbalanced by increased emissions elsewhere in the world — has also arisen. Various adjustments have been proposed, both in the academic literature and in draft climate legislation, including levying a border tax or requiring importers to surrender a quantity of carbon permits. Collectively, these kinds of adjustments are often referred to as border carbon adjustments, or BCAs. This note reviews the existing literature on BCAs and alternatives to BCAs and discusses what various researchers have concluded about the efficacy of BCAs from both a trade and an environmental perspective. Classification-JEL: F13; F18; F53; F59; F64; H23; K32; K33; Q48; Q54; Q58 Keywords: border carbon adjustment, border tax adjustment, climate change, trade and environment Creation-Date: 2013-10-31 Number: 2013/6 Handle: RePEc:oec:traaaa:2013/6-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clive George Author-Workplace-Name: University of Manchester Title: Developments in Regional Trade Agreements and the Environment: 2013 Update Abstract: This report provides an update on recent developments in the field of Regional Trade Agreements and the environment. Issues arising in the implementation of RTAs with environmental considerations are examined as well as experience in assessing their environmental impacts. This is the seventh update prepared under the aegis of the Joint Working Party on Trade and Environment (JWPTE) since the series began with the 2007 publication Environment and Regional Trade Agreements. The document covers developments from late 2012 to October 2013. It is based on publicly available information. Classification-JEL: F13; F18; N50; Q56 Keywords: environmental provisions, free trade agreements, regional trade agreements, trade and environment, trade policy Creation-Date: 2014-07-25 Number: 2014/1 Handle: RePEc:oec:traaaa:2014/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clive George Author-Workplace-Name: University of Manchester Title: Environment and Regional Trade Agreements: Emerging Trends and Policy Drivers Abstract: This report examines trends in the use of environmental provisions in Regional Trade Agreements and identifies factors which may explain the presence or absence of these provisions. The report builds on work of the OECD Joint Working Party on Trade and Environment (JWPTE) and includes results of an informal survey of delegates. Analysis of the environmental provisions in RTAs reveals an encouraging upward trend. While basic provisions remain the most common types found in RTAs, the incidence of more substantive provisions has increased significantly in recent years. Among these, environmental co-operation has been the most common type. Several factors may have contributed to this evolution. These include countries extending their political mandates for RTAs, for example to include provisions for compliance with multilateral environmental agreements (MEAs), as well as a general accumulation of experience with the use of environmental provisions. Classification-JEL: F13; F18; N50; Q56 Keywords: environmental provisions, free trade agreements, regional trade agreements, trade and environment, trade policy Creation-Date: 2014-07-25 Number: 2014/2 Handle: RePEc:oec:traaaa:2014/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jehan Sauvage Author-Workplace-Name: OECD Title: The Stringency of Environmental Regulations and Trade in Environmental Goods Abstract: This report assesses conceptually and empirically the extent to which the stringency of environmental regulations drives international trade in environmental goods. Many of the measures governments adopt to address issues such as local air and water pollution or GHG emissions take the form of regulations that aim to change the behaviour of firms or households. Compliance by private actors with those regulations in turn generates a growing market for environmental goods and services that is increasingly international in scope as more countries tighten their environmental regulations. Regulatory stringency thus spurs the development of a market for a whole range of equipment specifically meant for preventing and abating pollution, with important implications for international trade in such equipment. The different indicators of regulatory stringency considered in the present analysis generally support the notion that the stringency of environmental regulations positively affects countries’ specialisation in environmental products, even when considering specific sectors such as solid-waste management or wastewater treatment. While increased trade in environmental products is not an end in itself, the environmental benefits this entails can contribute to global improvements in environmental quality. By increasing demand for environmental products and technologies, environmental policy can complement trade policy in supporting pollution-reduction efforts not just domestically, but also abroad. Classification-JEL: F14; F18; Q53; Q56; Q58 Keywords: comparative advantage, environment, environmental goods, environmental regulations, solid waste management, trade, wastewater treatment Creation-Date: 2014-12-05 Number: 2014/3 Handle: RePEc:oec:traaaa:2014/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Rob Dellink Author-Name: Hyunjeong Hwang Author-Workplace-Name: OECD Author-Name: Elisa Lanzi Author-Name: Jean Chateau Title: International trade consequences of climate change Abstract: This report provides an analysis of how climate change damages may affect international trade in the coming decades and how international trade can help limit the costs of climate change. It analyses the impacts of climate change on trade considering both direct effects on infrastructure and transport routes and the indirect economic impacts resulting from changes in endowments and production. A qualitative analysis with a literature review is used to present the direct effects of climate change. The indirect impacts of climate change damages on trade are analysed with the OECD’s ENV-Linkages model, a dynamic computable general equilibrium model with global coverage and sector-specific international trade flows. By building on the analysis in the OECD (2015) report "The Economic Consequences of Climate Change", the modelling analysis presents a plausible scenario of future socioeconomic developments and climate damages, to shed light on the mechanisms at work in explaining how climate change will affect trade. Classification-JEL: C68; F17; F18; O44; Q56 Keywords: CGE model, Trade and climate change, Trade and environment Creation-Date: 2017-04-29 Number: 2017/1 Handle: RePEc:oec:traaaa:2017/1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jehan Sauvage Author-Name: Christina Timiliotis Title: Trade in services related to the environment Abstract: This paper discusses the nature and scope of international trade in environmentally related services, and analyses the implications that services trade restrictions have on the provisions of these services domestically and abroad. Numerous services appear crucial to the delivery and proper functioning of environmental goods and equipment be they a wastewater-treatment facility or a renewable power plant. By helping lower the costs of these services and improving access to world-class suppliers, trade policy can contribute alongside energy and environmental policy to the prevention and abatement of greenhouse-gas emissions and pollution in all its forms. Besides clarifying the role and scope of services related to the environment, the analysis undertaken in this paper suggests that the restrictions that countries impose on services trade may have a detrimental effect on the provision of environmental activities through the establishment by specialised firms of a commercial presence abroad, i.e. through mode 3 trade in services. Classification-JEL: F14; F18; F64; L84; L97; Q56 Keywords: climate change, Environmental services, services trade restrictions, trade in services, trade policy Creation-Date: 2017-05-09 Number: 2017/2 Handle: RePEc:oec:traaaa:2017/2-EN Template-type: ReDIF-Paper 1.0 Author-Name: Harro van Asselt Author-Workplace-Name: Stockholm Environment Institute Title: Climate change and trade policy interaction: Implications of regionalism Abstract: This report investigates the implications of regionalism for the interaction between trade and climate policy. It examines the implications of regional climate governance for international trade and conversely the implications of regional trade governance for climate change action. Regional approaches to climate change governance are discussed with a specific focus on the rise of “climate clubs” and their implications for international trade. Moreover, regional trade agreements and their current environmental provisions related to climate change are also examined. Building on these analyses, this report explores the various ways in which regional trade agreements could address climate change objectives, and draws lessons from recent developments in regional trade governance for the further evolution of such agreements. Classification-JEL: F13; F18; Q54; Q56; R11 Keywords: climate clubs, climate coalitions, free trade agreements, regional trade agreements, Trade and environment Creation-Date: 2017-05-31 Number: 2017/3 Handle: RePEc:oec:traaaa:2017/3-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clive George Author-Workplace-Name: University of Manchester Author-Name: Shunta Yamaguchi Author-Workplace-Name: OECD Title: Assessing Implementation of Environmental Provisions in Regional Trade Agreements Abstract: This report assesses the progress of the implementation of environmental provisions in RTAs. It focuses on the extent to which governments have complied with the environmental commitments made in the trade agreements to which they are a Party. The report takes a two track approach. First, a review of implementation and evaluation reports associated with environmental provisions in such agreements is performed. Second, a survey of government officials, trade negotiators and other experts is carried out. Classification-JEL: F13; F18; N50; Q56; R11 Keywords: environment policy, environmental provisions, free trade agreements, Regional trade agreements, trade and environment, trade policy Creation-Date: 2018-03-28 Number: 2018/01 Handle: RePEc:oec:traaaa:2018/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Inmaculada Martínez-Zarzoso Author-Workplace-Name: University of Göttingen Title: Assessing the Effectiveness of Environmental Provisions in Regional Trade Agreements: An Empirical Analysis Abstract: This report aims to test whether the inclusion of environmental provisions in Regional Trade Agreements (RTAs) has contributed to the improvement of environmental quality among the Parties to these agreements through empirical modelling and analysis. Three indicators are considered as a proxy for environmental quality: concentrations of suspended particulate matter less than 2.5 microns (PM2.5), sulphur dioxide (SO2) and nitrogen oxide (NOx).The analysis identifies a statistically significant and positive relationship between membership in RTAs, either with or without environmental provisions, and improved environmental quality for two out of three pollutants investigated. However, the extent to which RTAs with environmental provisions makes an additional difference on emissions in comparison to those without environmental provisions could not be concluded with enough statistical certainty under the current empirical framework. Future analysis could benefit from better information on the channels of effects and the further developed environmental indicators on both policy and output. Classification-JEL: F13; F18; Q56; Q58; R11 Keywords: environment policy, environmental provisions, free trade agreements, Regional trade agreements, trade and environment, trade policy Creation-Date: 2018-09-12 Number: 2018/02 Handle: RePEc:oec:traaaa:2018/02-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shunta Yamaguchi Author-Workplace-Name: OECD Title: International Trade and the Transition to a More Resource Efficient and Circular Economy: A Concept Paper Abstract: The transition towards a more resource efficient and circular economy has broad linkages with international trade through the emergence of global value chains as well as trade in second-hand goods, end-of-life products, secondary materials and waste. Despite of the potential linkages between trade and the circular economy, the existing research on this issue is limited to date. For this reason, this paper highlights the potential interaction of international trade and the circular economy in order to map out potential issues to address and to guide further research areas to explore on this topic. The paper first briefly introduces the circular economy concept and how trade can come into play, second highlights the various ways in which trade and the circular economy can potentially interact with one another, and third briefly concludes with potential ways forward and next steps. Classification-JEL: F18; O13; Q53; Q56 Keywords: circular economy, environment policy, resource efficiency, sustainable materials management, trade and environment, trade policy Creation-Date: 2018-10-18 Number: 2018/03 Handle: RePEc:oec:traaaa:2018/03-EN Template-type: ReDIF-Paper 1.0 Author-Name: Grégoire Garsous Author-Workplace-Name: OECD Title: Trends in policy indicators on trade and environment Abstract: Addressing the relationship between domestic environmental regulations and international trade policies is essential to better understand the need for consistency and complementarity between these areas. The set of trade and environment indicators developed by the OECD aims to provide insights on this relationship by shedding light on topical debates regarding the interactions between trade and environmental policies. Issues covered include: carbon emissions embodied in trade; embodied raw materials in trade; the volume of trade in environmentally-related goods; tariffs on environmentally-related goods; support measures for fossil fuels; enabling policy and regulatory environment for renewable energy; the volume of trade in waste and scrap; and nutrient balances of exported grains. Although initial insights are provided for these indicators, no detailed analyses is developed at this stage. Rather, these indicators are building blocks to analyse, for instance, the determinants of identified trends or to allow for a better understanding of the issues at hand. Possible avenues for further policy-relevant investigations using the indicators are identified and discussed for each topic covered. Classification-JEL: F14; F18; F64; Q17; Q56; Q58 Keywords: environmental regulations, Trade policies Creation-Date: 2019-03-01 Number: 2019/01 Handle: RePEc:oec:traaaa:2019/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shunta Yamaguchi Author-Workplace-Name: OECD Title: Greening regional trade agreements: Subsidies related to energy and environmental goods Abstract: Many regional trade agreements (RTAs) contain chapters and articles that are environmentally specific. However, Parties can elect to more broadly incorporate environmental objectives in their RTAs to address their environmental concerns in such agreements. This report investigates in what ways RTAs could incorporate environmental objectives in chapters and articles related to subsidies for energy and environmental goods. It highlights the current state of play in incorporating provisions related to environmentally related subsidies in RTAs, and also illustrates possible ways to incorporate environmental objectives in RTAs based on existing practice and information. Regional disciplines on subsidies could be considered in RTAs with respect to the Parties’ environmental objectives in several ways, such as ensuring non-discriminatory measures, agreeing on a set of non-actionable subsidies, committing to phase-out certain subsidies, and securing greater transparency. Classification-JEL: H23; F13; F18; R11; N50; Q56 Keywords: agreements, environment policy, environmental provisions, free trade agreements, regional trade agreements, subsidies, trade and environment, trade policy Creation-Date: 2020-01-07 Number: 2020/01 Handle: RePEc:oec:traaaa:2020/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Clara Frezal Author-Name: Grégoire Garsous Title: New digital technologies to tackle trade in illegal pesticides Abstract: Global trade in illegal pesticides has been steadily growing in recent years, posing serious threats to agriculture, the environment, human health, and the economy. Evidence of this trend can be found in the increasing number of seizures of counterfeit, fake, and unauthorised pesticides, as well as their growing share in the global pesticide market. This paper identifies the main drivers and enablers of this illicit trade, and explores the potential of digital technologies, such as blockchain, to support policies to tackle this criminal activity. It also outlines the challenges in the adoption of these digital-based policy responses and discusses other available policy options. Classification-JEL: Q55; Q18; Q16; Q17; F18 Creation-Date: 2020-07-23 Number: 2020/02 Handle: RePEc:oec:traaaa:2020/02-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shunta Yamaguchi Title: Greening regional trade agreements on investment Abstract: Many governments are increasingly recognising the need to ensure that trade and investment agreements reflect environmental concerns to help achieve overarching environmental goals and to increase their public acceptability. In particular, investment liberalisation and protection, as well as environmental sustainability are essential elements to consider in these agreements to foster economic integration and require coherent policy approaches.In this context, this report investigates possible approaches that can help ensure policy coherence between investment and environment related provisions in regional trade agreements (RTAs). As investment related articles appear not only in RTAs but more broadly in bilateral investment treaties (BITs) and in other international investment agreements (IIAs), the work extends to trade and investment agreements that encompass RTAs, BITs and other IIAs. The report highlights available practices to ensure that investment related provisions reaffirm the domestic environmental policy space. Classification-JEL: F18; F53; P45; R11; Q56 Keywords: bilateral investment agreements, environment policy, environmental provisions, free trade agreements, green investment, international investment agreements, investment policy, Regional trade agreements, trade and environment, trade and investment agreements, trade policy Creation-Date: 2020-10-26 Number: 2020/03 Handle: RePEc:oec:traaaa:2020/03-EN Template-type: ReDIF-Paper 1.0 Author-Name: Christophe Bellmann Author-Name: Colette van der Ven Title: Greening regional trade agreements on non-tariff measures through technical barriers to trade and regulatory co-operation Abstract: This report explores how regional trade agreements (RTAs) can serve as a vehicle to reflect environmental objectives in chapters and articles dealing with technical barriers to trade and regulatory co-operation. In particular, the analysis builds upon examples from seven recent RTAs that aim at deep economic integration, and explores ways to further incorporate environmental objectives. The report identifies a range of options to reconcile economic and environmental objectives, related to areas of technical barriers to trade and regulatory co-operation, by incorporating environmental considerations as overarching principles, provisions on regulatory impact assessments and ex post evaluations, non-regression clauses, and dedicated chapters and sectoral annexes. Classification-JEL: F13; F18; R11; Q56 Creation-Date: 2020-12-22 Number: 2020/04 Handle: RePEc:oec:traaaa:2020/04-EN Template-type: ReDIF-Paper 1.0 Author-Name: Grégoire Garsous Author-Name: Stephan Worack Title: Trade as a channel for environmental technologies diffusion: The case of the wind turbine manufacturing industry Abstract: Only a small number of companies, located in a few countries, have specific technological expertise in wind turbine manufacturing. New quantitative analysis shows this expertise to be a significant driver of trade in wind turbines. Moreover, countries’ wind power generation efficiency is shown to depend on access to higher quality wind turbines available in international markets. Trade in wind turbines thus provides access to technologies with a level of efficiency that cannot be replicated domestically in importing countries. These results have important policy implications: i) barriers to trade in wind turbines are also barriers to the dissemination of key environmental technologies which are not otherwise widely available; ii) trade-discriminatory measures can also negatively impact non-manufacturing job creation in the renewable sector, as this relies on the continuous deployment of wind energy, which in turn depends on access to high quality turbines from international markets; and iii) policies should not focus on the creation of national champions, but rather on ensuring that domestic firms can apply their specific capabilities to new opportunities in the global value chains of renewables industries. Classification-JEL: F13; F18; O13; O33; O42 Keywords: Environmental technologies, Patents, Trade, Wind energy Creation-Date: 2021-02-02 Number: 2021/01 Handle: RePEc:oec:traaaa:2021/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shunta Yamaguchi Title: International trade and circular economy - Policy alignment Abstract: Circular economy policies and initiatives largely take place domestically, and yet they have important interlinkages with international trade. This report explores how to make circular economy policies and trade policies mutually supportive by mapping out potential misalignments and identifying opportunities to align and strengthen both policy areas. The report highlights the various interlinkages between international trade and circular economy, and examines the interactions between trade and circular economy at the policy level, focussing on the multilateral trade regime and regional trade agreements, as well as specific policies to promote the circular economy, such as extended producer responsibility and product stewardship schemes, taxes and subsidies, green public procurement, environmental labelling schemes, and standards. Classification-JEL: F18; O13; Q53; Q56 Keywords: Circular economy, Environment policy, Resource efficiency, Trade and environment, Trade policy Creation-Date: 2021-02-19 Number: 2021/02 Handle: RePEc:oec:traaaa:2021/02-EN Template-type: ReDIF-Paper 1.0 Author-Name: Christophe Bellmann Author-Name: Alena Bulatnikova Title: Incorporating environmental provisions in regional trade agreements in chapters and articles dealing with trade in services Abstract: This report explores ways in which regional trade agreements (RTAs) can incorporate environmental objectives in chapters and articles related to trade in services. In particular, the analysis builds on a review of existing provisions in recent RTAs aiming at fostering deep economic integration. The report identifies a range of possible options as a way forward, from general commitments to co-operate on environmental goods and services, through horizontal provisions guaranteeing the right to regulate or to protect the environment, to specific commitments on market access and national treatment, or disciplines designed to promote regulatory cooperation and good regulatory practices. These different avenues point to the need for a holistic approach in incorporating environmental considerations in services related provisions. Parties interested in promoting and facilitating trade in environmental services through RTAs would not only need to look at environment and sustainability chapters, but may also wish to do it through specific commitments on market access and national treatment as well as sectoral provisions or annexes on regulatory co-operation. Classification-JEL: F13; F18; Q56; R11 Keywords: environmental provisions, international regulatory co-operation, non-tariff measures, regional trade agreements, technical barriers to trade, trade and environment, trade in services, trade policy Creation-Date: 2022-07-27 Number: 2022/01 Handle: RePEc:oec:traaaa:2022/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shunta Yamaguchi Title: Securing reverse supply chains for a resource efficient and circular economy Abstract: Circular economy business models often rely on reverse supply chains and reverse logistics to close material loops, such as recycling waste and scrap into secondary raw materials, and extending product life by promoting direct reuse, repair, refurbishment and remanufacturing. Such activities can extend beyond borders and require the transboundary movement of end-of-life products to enable economies of scale. In this context, this report explores the opportunities and challenges for governments to facilitate cross-border reverse supply chains for a resource efficient and circular economy. It mainly focuses on the role of trade facilitation mechanisms and standards, and provides potential ways forward in utilising them to improve and strengthen cross-border reverse supply chains. The report also investigates other relevant policy responses such as addressing trade restrictions, combatting illegal waste trade, and introducing upstream policies such as eco-design initiatives that may work to support cross-border reverse supply chains. Classification-JEL: F13; F18; Q53; Q56 Keywords: circular economy, environment policy, resource efficiency, reverse logistics, reverse supply chains, standards, trade and environment, trade facilitation, trade policy Creation-Date: 2022-09-29 Number: 2022/02 Handle: RePEc:oec:traaaa:2022/02-EN Template-type: ReDIF-Paper 1.0 Author-Name: Evdokia Moïsé Author-Name: Stela Rubínová Title: Trade policies to promote the circular economy: A case study of lithium-ion batteries Abstract: Affordable and sustainable lithium-ion batteries are key to the development of electric vehicles markets and to the green energy transition. Circular economy solutions for end-of-life batteries can help address primary inputs disruptions, while reducing environmental costs associated with the mining of these inputs or with battery production. Circular value chains would also help address waste and disposal problems as Li-ion batteries reach end of life. These chains are in their infancy, as complex battery designs, material chemistries and insufficient waste stocks hamper their viability, but the projected growth should support profitability. International trade in Li-ion batteries waste will remain essential in markets where domestic waste streams are insufficient to achieve the scale necessary for economically viable recycling, or where inadequate infrastructure imposes reliance on recycling capacities abroad. Promoting circular value chains for Li-ion batteries would require greater clarity on the status of these batteries as waste, consistency of transport and storage safety regulations, trade facilitation and harmonisation of standards for battery design, and regulatory targets for waste collection and recycling rates, coupled with stewardship and take-back schemes. Classification-JEL: F18; F53; F68; K32; O34; Q38; Q53; Q56 Keywords: Critical raw materials, Electric vehicles, Green transition, Hazardous waste Creation-Date: 2023-01-30 Number: 2023/01 Handle: RePEc:oec:traaaa:2023/01-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shunta Yamaguchi Title: The nexus between illegal trade and environmental crime Abstract: Environmental crime is on the rise and is of growing concern to policy makers, to legitimate businesses, and more broadly to the general public. It is growing rapidly worldwide on average at over 8% per year, with an estimated value between USD 110-281 billion in 2018. Emerging issues include wildlife trafficking, illegal timber, illegal mining, illegal chemicals, illegal waste trafficking, and illegal, unreported and unregulated (IUU) fishing. Environmental crime can have serious implications to human health and the environment, to the global economy, and more broadly to good governance, national security and sustainable development.Addressing these criminal activities affecting the environment is difficult exclusively at the national level as they often extend on a transnational scale. In this context, this report provides a snapshot of cross-border environmental crime and available initiatives to tackle illegal activities at a transnational scale, with a particular focus on multilateral and regional frameworks. The key message from this report is that the increasing prevalence of cross-border environmental crime is due to regulatory failures and the growing involvement of transnational organised crimes, which require an internationally co-ordinated response, both at the multilateral and regional level. Classification-JEL: F18; F64; K42; Q56 Keywords: environment policy, environmental crime, illegal, illegal chemicals, illegal timber, illegal trade, illegal waste, Trade and environment, trade policy, unreported and unregulated fishing, wildlife tracking Creation-Date: 2023-07-06 Number: 2023/02 Handle: RePEc:oec:traaaa:2023/02-EN Template-type: ReDIF-Paper 1.0 Author-Name: Shunta Yamaguchi Title: Trade implications of upstream circular economy policies Abstract: Circular economy policies can aim to ensure that products placed on the market are environmentally sustainable throughout their lifecycle. These upstream circular economy policies can include initiatives to phase out hazardous substances, and enhance product durability, repairability, reusability, and recyclability. Policy instruments used to this end include Extended Producer Responsibility (EPR) schemes, eco-labelling and information schemes, product-related standards, eco-design requirements, green public procurement, and fiscal policies. While these upstream circular economy policies are increasingly considered in policymaking, their linkages with international trade have received less attention, especially in contrast to downstream aspects such as trade in waste and scrap. These policies can have potential implications for trade, including creating synergies between trade and circular economy objectives (e.g. making traded products more recyclable), as well as unintended consequences (e.g. through regulatory fragmentation). This report aims to fill this knowledge gap by exploring the trade implications of upstream circular economy policies. Classification-JEL: F13; F18; F64; Q56 Keywords: Circular economy, Durability, Eco-labelling, Environment policy, Extended producer responsibility, Green public procurement, Hazardous content, Material content, Product lifespan, Product-based standards, Recyclability, Recycled content, Repairability, Resource efficiency, Reusability, Trade and environment, trade policy, Trade-related environmental measures Creation-Date: 2024-10-22 Number: 2024/01 Handle: RePEc:oec:traaaa:2024/01-EN