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technological capacity in developing countries (Chart 2).The OECD will continue to provide fact-based analysisand present policy options on how to reconcileenvironmental concerns with economic and social goals.Besides the work mentioned above, the OECD willdeliver its Green Growth Strategy in May 2011 and willcontinue to work on a number of issues relevant for thefight against climate change, including governance,finance and development co-operation. Climate changeis the greatest challenge facing mankind today and theOECD is ready to continue to support internationalclimate change negotiations. nABOUT THE AUTHORAngel Gurría is the Secretary-General of theOrganisation for Economic Co-operation andDevelopment (OECD). He came to the OECD followinga distinguished career in public service, including twoministerial posts. As Mexico's Minister of ForeignAffairs from December 1994 to January 1998, MrGurría made dialogue and consensus-building one ofthe hallmarks of his approach to global issues. FromJanuary 1998 to December 2000, he was Mexico'sMinister of Finance and Public Credit. For the firsttime in a generation, he steered Mexico's economythrough a change of Administration without arecurrence of the financial crises that had previouslydogged such changes. As OECD's Secretary-General,since June 2006, Mr Gurría has reinforced theOECD's role as a "hub" for global dialogue and debateon economic policy issues while pursuing internalmodernisation and reform. TRADE & ECONOMIC DEVELOPMENT031" "OECD ANALYSISFOUND THAT REMOVING SUBSIDIES TO FOSSIL FUEL CONSUMPTIONALONE COULD REDUCE GLOBALGHG EMISSIONS BY10 PER CENT IN2050CHART 2: INNOVATION TREND IN CLIMATE MITIGATION TECHNOLOGIES 1990 (1990=100)Source: www.oecd.org/environment/innovation Change in patenting activity(three year moving average, indexed on 1990=100)

" "THE DOHA DEVELOPMENTROUND NEGOTIATIONSCAN PROVIDE ANUNPRECEDENTEDOPPORTUNITY FOR THE MULTILATERALTRADING SYSTEMTO CONTRIBUTE TOTHE MITIGATIONAND ADAPTATIONOF CLIMATECHANGE limate change is a challenge thattranscends borders and requires solutions not only at national levels but also globally. While climate change negotiators are working towards apost-2012 Agreement, the broader internationalcommunity, including the WTO, must prepareeffectively to contribute in a timely fashion to globalmitigation efforts. The WTO is an important actor in the architecture ofmultilateral economic cooperation and it recognisesthe objectives of sustainable development andprotection 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 furthertrade opening, these negotiations can assist in effortsto mitigate and adapt to climate change, for exampleby promoting an efficient allocation of the world'sresources - including natural resources - raisingstandards of living (hence the demand for betterenvironmental quality) and improving access toenvironmental 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 ofclimate change. Many of these technologies involveproducts which WTO Members are considering in theenvironmental goods negotiations. To date, the crux of the negotiations has been theidentification of environmental goods of interest.Several Members have submitted lists ofenvironmental goods, many of which contain climate-friendly goods and technologies. Examples of goodscurrently on the negotiating table include those related to renewable energy production such as windand hydraulic turbines, solar water heaters andgeothermal heat pump systems; energy efficient goods such as energy efficient appliances and LEDlamps; and other climate-friendly technologies, suchas solar stoves, fuel cells, and carbon capture andstorage 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 bythe European Union and the United States inDecember 2007 proposed to give priority in the WTO negotiations to climate-friendly goods and Right: Pascal Lamybecame Director-Generalof the WTO in 2005REDUCING TRADE BARRIERS FOR ENVIRONMENTAL SERVICESAND TECHNOLOGIESTRADE & 032ECONOMIC DEVELOPMENTPASCAL LAMY, DIRECTOR-GENERAL, WORLD TRADE ORGANISATION (WTO)C