" "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
TRADE & ECONOMIC DEVELOPMENT033to services linked to addressing climate change, while a submission by Argentina in November 2009 proposed to liberalise environmental goods required 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 activitieswhich 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 aconsequence of growing consumer demand for cleanerproducts and increasingly stringent environmentalregulations. Many of these services are supplied on a business-to-business basis and offer niche marketsfor small and medium-sized enterprises. Whiledeveloped countries have been traditionally the mainconsumers and producers of environmental services,developing country markets are currently experiencingsignificant growth.More open services trade facilitates the developmentand spreading of green products and technologies,which, in turn, help to protect the environment andpromote 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. I am convinced these results areworth fighting for. nABOUT THE AUTHORPascal Lamy is the Director-General of the WorldTrade Organisation. 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 September 1 2009.