As the World Trade Organization (WTO) celebrates its 30th anniversary, a key expectation of a growing diversity of governments and a broad range of stakeholders is for the multilateral trading system to respond more explicitly and proactively to global environmental challenges and wider sustainable development priorities. The past quarter saw some positive developments in this area.

From 7–11 October 2024, the WTO Secretariat organized the Fifth Trade and Environment Week. This year’s edition featured a high-level event on the clean energy transition and 15 side events organized by WTO members on a wide range of topics. Recorded videos of the public sessions are available. Trade and Environment Week also included a Committee on Trade and Environment (CTE) thematic session on trade-related climate measures. Notably, the formal CTE meeting included discussion of proposals from several governments for cooperation at the WTO on possible guidance to support cooperation on methodologies for the measurement of embedded emissions.

At a meeting on 24 July, the coordinators of the Dialogue on Plastics Pollution (DPP) identified eight points of focus for the three work streams of the initiative’s work plan and proposed a conceptual roadmap for 2024–2025 towards the 14th WTO Ministerial Conference (MC14).

In September, the 2024 Public Forum included an array of events on trade and sustainability bringing a diverse range of perspectives and issues from around the world. Video and audio recordings of the sessions are available. On 8 October, the organization formally commenced the process for appointing its next Director-General. Dr. Ngozi Okonjo-Iweala, whose current term is scheduled to conclude on 31 April 2025, has confirmed her intention to seek reappointment.

In UN news, on 22–23 September 2024, the Summit of the Future was convened under the auspices of the UN General Assembly, hosting hundreds of world leaders, policymakers, experts, and advocates in New York in an effort to revitalize multilateralism and reset global cooperation. World leaders adopted a Pact for the Future covering a broad range of themes, including sustainable development and financing for development, international peace and security, digital cooperation, youth and future generations, and transforming global governance, which comprise 56 actions. In very general language, Action 5 commits to ensuring that “the multilateral trading system continues to be an engine for sustainable development.”

Looking ahead, a series of high-profile international summits of great importance to planetary health are taking place between now and the end of the year. TESS will be present at all of them.

From 21 October to 1 November 2024, governments will gather in Cali, Colombia, for the 2024 UN Biodiversity Conference. Convening under the theme “Peace with the Nature,” it will include the first Conference of the Parties to the Convention on Biological Diversity (COP16) since the adoption of the Kunming-Montreal Global Biodiversity Framework (KMGBF) in December 2022 in Montreal, Canada.

The biodiversity conference is taking place against alarming trends in biodiversity loss. According to the latest data from Forest Pulse, the world lost 3.7 million hectares of tropical primary forest in 2023 alone. The World Wide Fund for Nature's 2024 Living Planet Report estimates a 73% average loss in the abundance of amphibian, bird, fish, mammal, and reptile species since 1970. The report warns that dangerous tipping points in the natural world are highly likely if current trends continue, with potentially catastrophic ecological, social, and economic consequences.

At COP16, governments are expected to chart an accelerated action plan for the implementation of the KMGBF, which includes targets to conserve 30% of land waters, and seas, restore 30% of all degraded ecosystems, and halt human-induced species extinctions by 2030. Countries are also expected to submit national targets, whether individually or as part of thier national biodiversity strategies and action plans (NBSAPs), detailing how they will align with the KMGBF goals as per Decision 15/6 of COP15. Other important agenda items will include advancing resource mobilization for the KMGBF, addressing finance and capacity gaps in developing countries, and seeking an agreement on the operationalization of the multilateral mechanism on benefit-sharing from digital sequence information on genetic resources, including a global fund.

With cooperation on international trade having a key role to play in the achievement of the KMGBF, the 2024 UN Biodiversity Conference will feature the first-ever Trade Day on 26 October. Jointly organized by UN Trade and Development (UNCTAD), the Secretariat of the Convention of Biological Diversity (CBD), the WTO, and other organizations, the thematic day aims to facilitate discussions among negotiators and stakeholders on potential pathways, best practices, and solutions for trade and trade-related policies to address biodiversity loss and implement the goals and targets of the KMGBF.

From 11–22 November, the 2024 UN Climate Change Conference (COP29) will convene in Baku Azerbaijan. At the previous climate conference, governments adopted a decision on the first global stocktake under the Paris Agreement, revealing the world is far off track from its 1.5^oC target. The stocktake is set to inform the next round of nationally determined contributions (NDCs) due by February 2025.

At COP29, negotiators are expected to agree on a New Collective Quantified Goal on Climate Finance, set to replace the existing goal of $100 billion per year. The 2023 report of the Independent High-Level Expert Group on Climate Finance concludes that developing countries (excluding China) will need around $2.4 trillion of investment per year by 2030 to meet the priorities of a just energy transition, adaptation and resilience, loss and damage, and the conservation and restoration of nature. The International Energy Agency warns in its 2023 Net Zero Roadmap that without the needed finance and investments, there is no pathway to keeping the 1.5^oC target within reach.

Regarding international trade, the COP29 presidency has announced that the summit will include the first-ever Climate Finance, Investment, and Trade Thematic Day as an integrated event, scheduled for 14 November. A Trade and Investment House is being organized by the Ministry of Economy of Azerbaijan (AZPROMO), with support from partner institutions, including the WTO, UN Trade and Development, the International Trade Centre, and the International Chamber of Commerce. Additionally, as part of its COP29 Action Agenda, the presidency is advancing the Baku Initiative for Climate Finance, Investment, and Trade (BICFIT). Aiming to enhance coherence by integrating climate finance, investment, trade, and sustainable development agendas, the Initiative proposes a global platform of dialogue.

Alongside, Barbados has released its Bridgetown Initiative 3.0 on the reform of the international development and climate finance architecture, which includes a trade dimension calling for a “multilateral trading regime that supports a green and just transition.”

As the climate COP reaches the closing stages, on 18–19 November, Brazil will be hosting the G20 Leaders’ Summit in Rio de Janeiro under the theme “Building a Just World and a Sustainable Planet.” The summit comes as Brazil prepares to assume the presidency of the 2025 UN Climate Change Conference (COP30), which will take place in Belém in November next year.

Finally, in this busy schedule of international summits critical to the environment and sustainable development, the fifth session of the Intergovernmental Negotiating Committee to develop an international legally binding instrument on plastic pollution, including in the marine environment (INC-5), is scheduled to take place from 25 November to 1 December 2024 in Busan, Republic of Korea. At this final session, delegates will seek to to complete the negotiations before the end of 2024, as per the mandate of UNEA Resolution 5/14.

The WTO Public Forum, which took place from 10–13 September, is one of the key opportunities for a broad range of stakeholders to share views on priorities, challenges, and opportunities for the multilateral trading system and interact with WTO delegations. TESS joined a number of sessions as speaker and host (see below).

On 9 September, we hosted the high-level opening plenary of Geneva Trade Week on fostering international cooperation and collective action on trade, climate, and sustainable development at the WTO. The event brought together a diverse group of Geneva-based ambassadors to the WTO and leading international experts to share their views on both pragmatic options and unconventional ideas on ways forward.

We also hosted our annual breakfast roundtable bringing together invited climate and trade experts from around the world as well as a reception of trade and sustainability colleagues in Geneva for the WTO Public Forum. At the reception we celebrated our three-year anniversary and launched a compilation of expert views on Reviving multilateralism: From vision to action on trade and sustainability at the WTO. Published as a series from February to September 2024 in our blog Synergies, the compilation marks a notable achievement for TESS featuring 30 articles by leading experts on the state of play in the multilateral trading system and how to put sustainability at the top of the agenda.

Cutting across all of our thematic work, a key ongoing initiative over the past quarter was our series of Ambassadors’ Roundtables on Trade and Sustainability, launched in April. At the second roundtable in June, ambassadors were invited to reflect and share views on priorities and opportunities related to aid for trade and financing for sustainability in trade. We convened a third roundtable in October, where ambassadors reflected on how to enhance cooperation on the nexus of climate, trade, finance, and sustainable development at the WTO, with the aim of spurring early reflections on the road to MC14 and potential outcomes.

In the following overview of our thematic work over the past quarter, you will find other highlights, including the release of a report by an International Expert Group on Trade, Circular Economy, and Sustainable Development convened by TESS and the launch of a new series of sectoral briefing notes on net zero pathways and implications for developing countries.

In early October, we launched a new series of sectoral briefing notes on Trade and climate scenarios on the road to 2050: Implications for developing countries and climate-resilient development. The series aims to provide an overview of current and anticipated transformations in trade on the road to 2050 in the context of the unfolding climate crisis and the international community’s climate action agenda, and to discuss potential scenarios and implications for developing countries. The sectors covered in the series will include agriculture, border carbon adjustments, carbon markets, critical minerals, digital trade, fisheries, energy, heavy industries, textiles, tourism, and transport, each authored by experts in these respective fields. The briefing notes will inform a final report to be released in the coming months. On 4 October, we published the first briefing note in the series, authored by Scott Vaughan, which looks at carbon markets.

Recognizing the urgent need to forge collaboration on trade, climate, and sustainability, during the quarter we laid the groundwork for a new Synergies series on climate, trade, and sustainable development. The series will ask selected experts to consider how and where we can enhance international cooperation on trade to drive action on the Paris climate goals in ways that support sustainable development priorities and fair and just transitions. Meanwhile, TESS hosted a series of activities to advance dialogue and cooperation on this theme, including formal and informal discussions bringing together leading international experts and Geneva-based ambassadors to the WTO as well as stakeholder roundtables on climate and trade; the last of which was convened on 12 September during Geneva Trade Week. On 9 October, we were invited to moderate a WTO Trade and Environment Week session organized by China on trade-related climate measures and development.

Finally, in our role as Secretariat of the Coalition of Trade Ministers on Climate, we continued to support the work of the co-leads to advance cooperation on the coalition’s Menu of Voluntary Actions and prepare the coalition’s presence at COP29, including a panel on November 15 on priorities for collective trade action and cooperation to achieve climate goals in the context of the Trade and Investment House (see above).

View our thematic work on the climate crisis.

As governments and stakeholders prepare to gather in Busan from 25 November to 1 December for INC-5 (see above), TESS continued working to support an ambitious and effective treaty, while sustaining our ongoing efforts to foster trade-related cooperation on plastic pollution.

On 23 August, we published an informal briefing note that reviews contributions relevant to human health by INC members to ad hoc intersessional open-ended expert groups, and provides an overview of ways INC members have pointed to the protection of human health during their intersessional technical work and the opportunities to advance convergence on an integrated approach to the protection of human health and the environment in the treaty. This paper follows a roundtable that TESS co-hosted during the World Health Assembly on how the international health community can support the global response to plastic pollution and the plastics treaty.

As part of the Geneva Beat Plastic Pollution Dialogues, on 4 October TESS Executive Director Carolyn Deere Birkbeck spoke at an event on the Road to Busan, providing a review and update on the state of play, latest developments, and priorities and key challenges for ongoing efforts to forge convergence on a plastics treaty. In the lead up to INC-5, TESS is focusing its work on supporting cooperation on several key topics of negotiations—primary plastic polymers, chemicals of concern, financing and means of implementation, and health.

As governments look to crossing the finishing line in the plastics treaty negotiations in early December, we continue to support the work of the High Ambition Coalition to End Plastic Pollution (HAC) as part of its Secretariat function, including by supporting HAC members in their preparations for INC-5. You can read the HAC Member States Ministerial Joint Statement for INC-5. TESS will be present on the ground supporting the treaty process at INC-5, including through a set of events and consultations.

During the quarter, we also continued active engagement with the work of the DPP. Among other activities, on 18 September, TESS contributed to the DPP Pre-Plenary meeting where we provided statements on agenda items related to capacity building for developing members and the streamlining of information on trade-related policy measures. We also reminded members of the opportunity for Harmonized System (HS) reforms to improve transparency in the trade flows of plastic products and ongoing discussions at the World Customs Organization ahead of the final session of the HS Review Sub Committee for the current round of HS amendments, taking place in November this year.

View our thematic work on plastic pollution.

During the quarter, we expanded our work on a range of topics in our thematic work on biodiversity, natural resources, and sustainability in agriculture and food systems. In September, Christophe Bellmann, TESS Head of Policy Analysis and Strategy, authored a Synergies article identifying avenues through which WTO members could address the urgent need for the multilateral trading system to foster inclusive cooperation on the sustainability dimensions of agricultural production and trade.

As part of our ongoing work on a trading system that supports sustainability in the agricultural sector, on 21 June we hosted a one-day deep dive on fostering international trade cooperation on environmentally harmful agricultural subsidies. At the meeting, government officials and leading experts discussed topics ranging from the environmental and socio-economic impacts and policy trade-offs associated with different types of subsidies to knowledge gaps and the collaborative outcomes that could be envisaged under different WTO bodies and international initiatives. Building on these discussions, on 12 September, we co-hosted with the permanent missions to the WTO of Australia and New Zealand a WTO Public Forum session on approaches and pathways to addressing environmentally harmful agricultural subsidies at the WTO.

During the quarter, we advanced work on the report of the Expert Group on Environmentally Harmful Agricultural Subsidies, mobilized by TESS to identify a set of environmentally harmful subsidies for priority action at the international level and inform discussion on options for cooperative action in the multilateral trading system. The report will be published by the end of the year. On 6 September, TESS was invited to speak at an OECD workshop on current evidence and knowledge gaps regarding the environmental impacts of agricultural support.

As Colombia prepares to host CBD COP16, on 9 October we co-organized with Columbia, Ecuador, and Australia a session at WTO Trade and Environment Week on nature-positive trade, focusing on how international cooperation, including at the WTO, can support achievement of the KMGBF and broader sustainable development goals. A video of the session is available.

In September we published a policy brief by Ruth Davis on the transition to an economy that values nature. The paper argues that fundamental reforms are needed to tilt financial incentives towards nature’s protection and restoration and calls for a new diplomacy where the future landscape for nature financing is shaped by those on the front line of nature protection. A Synergies article derived from the paper is available.

Linking our thematic work on nature, resources, and the climate crisis, in July we co-hosted with UNEP and UNCTAD a roundtable on developing country perspectives and pathways for international cooperation on trade in minerals critical for climate transitions and the green economy, bringing together a diverse group of experts from government, intergovernmental organizations, research institutes, and stakeholder organizations. We encourage you to view the presentations by experts present at the meeting.

View our thematic work on the nature, food, and resources.

In September, we released the final report of the Expert Group on Trade, Circular Economy, and Sustainable Development, mobilized by TESS to develop guidance on best practices and approaches on the trade dimensions of circular economy policies and measures, with the overarching goal of advancing sustainable development goals.

The report, supported by a diverse group of leading experts on trade and circular economy, provides guidance to policymakers and stakeholders and contributes to ongoing international deliberations on these issues. The expert group has identified 10 considerations to guide the design and implementation of trade-related circular economy policies and measures in ways that support advancing sustainable development and inclusive international cooperation on trade and sustainability. The report has attracted considerable interest and will be presented at the WTO in the TESSD meeting of the Working Group on Circular Economy – Circularity on 30 October.

View our thematic work on circular economy.

We invite you to read articles published over the past quarter in Synergies, the TESS blog dedicated to promoting inclusive policy dialogue at the intersection of trade, environment, and sustainable development, drawing on perspectives from a range of experts from around the world.

Synergies articles published over the previous quarter:

Why the Next Three Months Are Critical for People, Nature, and Climate by Ani Dasgupta (02 October)

Reforming Financial Systems and the Transition to an Economy That Values Nature by Ruth Davis (01 October)

Revitalizing International Fossil Fuel Subsidy Phase-Out Commitments Through Roadmaps, Closing Loopholes, and Support by Jakob Skovgaard, Harro van Asselt, Christopher Beaton, Evan Drake, Natalie Jones, Neil McCulloch, Ronald Steenblik, & Peter Wooders (25 September)

Trade and Climate in the WTO: What Can We Learn From Preferential Trade Agreements? by Jean-Frédéric Morin & Clara Brandi (17 September)

How the WTO Can Help Foster Cooperation on Sustainable Agriculture and Trade by Christophe Bellmann (09 September)

WTO Reform: Catalyst for a Sustainable Trade System and Transformative Change by Jan Yves Remy (06 September)

WTO at a “Crossroads” in Addressing Trade and Climate Nexus by Jean-Marie Paugam (03 September)

How Can We Harness Aid for Trade as a Crucial Component of the Financing Landscape for a Just Transition to Sustainable Trade? by Carolyn Deere Birkbeck & Fabrice Lehmann (01 September)

Making a Border Carbon Adjustment Mechanism Work for Climate, Trade, and Equity by Kasturi Das & Kaushik Ranjan Bandyopadhyay (29 August)

The Rising Agenda of “Beyond Growth” – What Impact for International Trade Debates on Sustainability? by Céline Charveriat (26 August)

Trade and Environment in a Cul-De-Sac: Balance Sustainable Consumption with Production by Pradeep S. Mehta, Bipul Chattopadhyay, & Shruti Maheshwari (21 August)

The Emerging Principle of Common Concern of Humankind and International Trade Regulation by Thomas Cottier (07 August)