The market for environmental services is substantial and growing. This policy brief argues that if well managed, liberalisation of trade in environmental services can provide substantial benefits to the private sector as well as the general public.
The paper clarifies that this would be achieved through enhanced market opportunities, improved health and environmental sustainability, particularly in developing countries.
Findings encompass:
- trade in environmental services sectors can assist countries in the transition to a green economy, and the green economy will provide opportunities for exporters of environmental services
- in terms of exports, the greatest opportunities for developing country firms lie in non-infrastructure services (e.g. environmental consultancy)
- WTO members are working to reduce or eliminate tariff and non-tariff barriers to environmental services, but the lack of an accepted classification for environmental services hampers the negotiations
- restrictions, such as those on foreign investment or limitations on foreign equity participation, are particularly detrimental to trade in environmental services
The author concludes that the successful conclusion of the Doha Round could offer a number of potential opportunities to support growth in the environmental services market, including through enhanced market access. In addition, a number of other factors at the national, regional and international levels can also help create the right conditions for developing countries to expand their presence in this market, such as:
- building up expertise in niche segments of the market
- seeking joint venture opportunities with foreign firms
- liberalising environmental services through regional and bilateral trade agreements
- building appropriate regulatory frameworks to support the development of infrastructure related environmental services
- promoting transparency and recognition of qualifications and certifications to reduce obstacles to trade in services linked to the movement of natural persons.
This summary was prepared by Eldis.