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Environmental Negotiations -Making the WTO Part of the ToolboxPascal Lamy, Director-General, World Trade Organization On the shores of Rio de Janeiro, exactly twenty years ago, the world sealed a landmark environmental deal. The Rio Earth Summit of 1992 delivered an Agenda for the 21st Century from which all countries drew inspiration, and several multilateral environmental agreements (MEAs), of which the United Nations Framework Convention on Climate Change (UNFCCC) was one. The 1992 summit created an unprecedented atmosphere of international collaboration on environmental issues, fundamentally changing our perception of the natural resources with which our planet is endowed. It made us ask probing questions about the sort of planet that we would bequeath to our children. And never did the word "common resource" ring more true than after this Summit of 1992. Twenty years on, we now ask ourselves, how else should we be taking the international environmental and sustainable development agenda forward? What should we be doing? Where should we place the accent?Understandably, the climate crisis is at the top of our list of global preoccupations. The creeping crisis and the slowness of the international response to it are undoubtedly a serious cause for concern. The creation of a "green economy" has been touted as the response to many of the environmental challenges we face, including the climate crisis, with the message being: we must continue to grow, but must do so differently. The concept of a green economy has come accompanied by a call for expanding the use of renewable energies, and disseminating clean technology. At Rio + 20 sustainable growth is now being championed. Clearly, the world needs to continue to put the emphasis on the creation of a global climate accord; a clear and stable successor regime to that of the first and second commitment Pictured: Pascal Lamyperiods of the Kyoto Protocol. Such an accord would create the right incentive structure for the green economy to take hold. The Durban Platform for Enhanced Action set up a process to negotiate "a protocol, another legal instrument or an agreed outcome with legal force" no later than 2015 - a commendable goal. Absent such an international regime, the climate crisis risks disintegrating into trade disputes, as countries tend to resort to unilateral environmental measures to combat climate change, and take it into their own hands to galvanise others into action through trade measures at the border.In this vein, I wish to recall Principle 12 of the Rio Declaration of 1992, which stated that: "Trade policy measures for environmental purposes should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. Unilateral actions to deal with environmental challenges outside the jurisdiction of the importing country should be avoided. Environmental measures addressing trans-boundary or global environmental problems should, as far as possible, be based on an international consensus." On climate change, that consensus must continue to be sought.How then do we achieve that consensus? Clearly, certain enabling conditions must be forged. Prime amongst them would be to disseminate clean technology. After all, who would be opposed to green growth or to an international climate accord, if their technological feasibility were to be ensured? For most countries it is not about whether to achieve a green economy or a global climate accord, but how. At Rio + 20, I would strongly urge negotiators to make the World Trade Organization (WTO) part of their "Emphasis must also remain on concluding a global climate accord. We cannot risk a climate trade conflict"084 FINANCE AND INVESTMENT

toolbox. The first ever environmental negotiation in the history of the multilateral trading system was launched 10 years ago. Some of it would contribute directly to sustainable growth. I am especially referring to the opening of trade to environmentally-friendly goods and services at the WTO. At the moment, on the negotiating table there are many climate adaptation and mitigation technologies, whose export in recent years has totalled US$165 billion. They include goods such as wind turbines, solar cooking appliances, and photovoltaic cells. These goods should cease to be penalised at national borders through tariffs. We must make clean technology, and especially climate-friendly technology, more affordable and accessible to all.But a negotiation was also launched at the WTO on the reduction or elimination of environmentally-harmful fisheries subsidies - yet another leg of sustainable growth. A negotiation aimed at a model of growth that would discourage the depletion of scarce environmental resources. The proponents of new rules on fisheries subsidies in the WTO argue that an estimated US$14-20 billion of annual subsidies are depleting the world's fish stock. They have artificially inflated the size of the global fishing fleet. The size of this fleet, combined with massive advances in fishing technology - in particular trawling - have caused alarm. Whereas in 1950, our fish catch amounted to 20 million tons, in recent years it has soared to over 80 million tons. But did our fish stock also grow? Sadly not. Instead, some of the world's oldest living fish species are on the verge of extinction. At Rio + 20 we must not ask whether we want green growth, but how to make that growth possible. The WTO, as the regulator of global trade can contribute to this: the already mandated environmental negotiations in the WTO should be brought to closure. Emphasis must also remain on concluding a global climate accord. We cannot risk a climate trade conflict. n"At the moment, on the negotiating table there are many climate adaptation and mitigation technologies, whose export in recent years has totalled US$165 billion"FINANCE AND INVESTMENT 085