he WTO is an important actor in thearchitecture of multilateral economic co-operation and it recognises the objectives of sustainable developmentand protection of the environment as part of itsfundamental goals. Both are enshrined in theMarrakesh Agreement, establishing the WTO, and arebeing further promoted in the current negotiationsunder the Doha Development Round.Through further trade opening, these negotiations canassist in efforts to mitigate and adapt to climatechange, for example by promoting an efficientallocation of the world's resources - including naturalresources - raising standards of living (hence thedemand for better environmental quality) andimproving access to environmental goods and services.In the context of the Doha Round, ministers called fornegotiations on "the reduction, or as appropriate,elimination of tariff and non-tariff barriers toenvironmental goods and services". Thesenegotiations, once completed, will result in fewer andlower barriers to trade in environmental goods andservices, including goods that can contribute toclimate change mitigation and adaptation. Asidentified by the Intergovernmental Panel on ClimateChange, a range of mitigation and adaptationtechnologies exist and may assist in the challenge of climate change. Many of these technologies involve products which WTO Members are consideringin the environmental goods negotiations. To date, the crux of the negotiations has been the identificationof environmental goods of interest. Several Membershave submitted lists of environmental goods, many of which contain climate-friendly goods andtechnologies. Examples of goods currently on thenegotiating table include those related to renewableenergy production, such as wind and hydraulicturbines, solar water heaters and geothermal heatpump systems; energy efficient goods such as energy efficient appliances and LED lamps; and other climate-friendly technologies, such as solar stoves, fuel cells, and carbon capture and storage technologies.There is a twofold rationale for reducing tariffs andother trade barriers regarding climate-friendly goodsand technologies. First, reducing or eliminating tradebarriers for these types of products should reduce theirprice and therefore facilitate their deployment at thelowest possible cost. The more accessible and cost-effective technologies are, the easier it is for countriesto adopt them. Secondly, opening trade in climate-friendly goods has the potential to create incentives forproducers, provide them with the domestic expertise toexpand the production and export of these goods, andexpand the size of markets, leading to profits fromeconomies of scale. Trade opening can also contributeto increasing local capabilities for innovation andadaptation of domestic technologies. Some WTO Members have put forth proposalsspecifically related to climate change. A submission by the European Union and the United States in December 2007 proposed to give priority in the WTO negotiations to climate-friendly goods and to services linked to addressing climate change,while a submission by Argentina in November 2009 proposed to liberalise environmental goodsrequired in the implementation of the CleanDevelopment Mechanism. The negotiations on environmental services alsoprovide opportunities to undertake new obligations andconsolidate market opening on a range of activitiesTRADE OPENING CAN HELPMITIGATE CLIMATE CHANGE064GLOBAL VOICESTPASCAL LAMY, DIRECTOR-GENERAL WORLD TRADE ORGANIZATION (WTO)" "MORE OPENSERVICES TRADEFACILITATES THEDEVELOPMENTAND SPREADINGOF GREEN PRODUCTS ANDTECHNOLOGIES,WHICH, IN TURN,HELP TO PROTECT THE ENVIRONMENT AND PROMOTE ENERGY EFFICIENCY
Below:Pascal lamywhich are of direct interest for mitigating globalwarming and improving environmental protection moregenerally. Services at stake in these negotiationsinclude so-called environmental services, such assewage services, waste management services andsanitation, cleaning of exhaust gases, as well as natureand landscape protection services, the latter two beingdirectly relevant to climate change mitigation policies. Other relevant services with significant environmentalend-uses include consulting, architecture,engineering, research and development, technicaltesting and analysis (e.g. of air, water or fuels),maintenance and repair of equipment, andconstruction services, amongst others. In recent years, environmental services have expanded as a consequence of growing consumer demand forcleaner products and increasingly stringentenvironmental regulations. Many of these services are supplied on a business-GLOBAL VOICES065to-business basis and offer niche markets for small and medium-sized enterprises. While developed countries have been traditionally the main consumers and producers of environmentalservices, developing country markets are currentlyexperiencing significant growth.More open services trade facilitates the developmentand spreading of green products and technologies,which, in turn, help to protect the environment and promote energy efficiency. By ensuring someminimum legal guarantees regarding, inter alia, theestablishment of foreign service suppliers, the cross-border supply of services or the movement of physicalpersons supplying these services, commitments underthe WTO General Agreement on Trade in Services cancontribute to promoting investment in climate-friendlytechnologies and making it easier to transfer up-to-date expertise and know-how.The Doha Development Round negotiations canprovide an unprecedented opportunity for themultilateral trading system to contribute to themitigation and adaptation of climate change. Furthertrade opening will facilitate access to key mitigationand adaptation goods and services, will promote anefficient allocation of the world's resources, andthrough income growth will increase demand for betterenvironmental quality.Climate change is a challenge that transcends bordersand requires solutions not only at national levels butalso globally. While climate change negotiators areworking towards a post-2012 Agreement, the broaderinternational community, including the WTO, mustprepare effectively to contribute in a timely fashion toglobal mitigation efforts. nABOUT THE AUTHORPascal Lamy is the Director-General of the WorldTrade Organization. He began his career in the Frenchpublic service at the Inspection Générale desfinances and at the Treasury. He then became anadvisor to the Finance Minister Jacques Delors, andsubsequently to Prime Minister Pierre Mauroy. From1985 to 1994, Pascal Lamy was Chief of Staff for thePresident of the European Commission, JacquesDelors, and his representative as Sherpa in the G7.He joined Crédit Lyonnais in November 1994 as amember of the new management team that was putin place at that time. After the privatisation of CréditLyonnais, in July 1999, Mr Lamy was appointedCommissioner for Trade at the European Commissionunder Romano Prodi. In May 2005 he was chosen asthe next Director-General of the WTO and took officeon 1 September 2005 for a four-year term. On 30April 2009, Mr Lamy was re-elected unanimously bythe WTO general council for a second term of fouryears, beginning 1 September 2009.